WeChat binds to the power grid to pay

What are Chinese payment platforms – WeChat & Alipay?

Chinese organisations, namely WeChat and AliPay, were pioneers in new payment technology that uses QR codes and in-app features to pay for goods and services. As the organisations that own WeChat and AliPay grow, so too these platforms now dominate the Chinese payment industry, with large usage nationally.

What is WeChat Pay & how does it work?

WeChat Pay started out in 2018 with just 600 local retail outlets and is now used by more than 100,000 merchants today, according to stats provided by Weixin. Despite being used interchangeably in overseas markets, Weixin Pay refers specifically to the Weixin ecosystem that Chinese travellers use to make payments in places like Singapore.

Are WeChat Pay & AliPay the same?

Alipay and WeChat Pay are dominant in digital payment services, accounting for a combined 91% market share. But for most foreign visitors, accessing the apps’ services was previously impossible — they needed to have a mainland Chinese bank account and a local mobile phone number.

Should SMEs switch to Alipay or WeChat Pay?

While the margin is slim, SMEs in China realised that by switching to AliPay or WeChat Pay and adopting the new payment technology - provided customers were willing to transact on these platforms - they could save ~2% annually. For larger merchants, AliPay and WeChat Pay used incentives which included free advertisement on their digital platforms.

Is Chinese digital currency a competitor to WeChat Pay & AliPay?

Although the digital currency is not expected to widely circulate in the next few years, this test sent a signal that Chinese digital currency is a potential competitor to WeChat Pay and Alipay, which currently processes about 95% of digital payments in China.

Is WeChat Pay a monopoly?

However, WeChat Pay handles a larger number of transactions. Article 56 deals with the “nationwide electronic payments market”. The article stipulates that any nonbank service provider controlling half of this market could qualify as a monopoly.