Tencent unlocks WeChat Pay network for international users!
WeChat Pay, one of China's leading mobile payment platforms, has taken a significant stride towards enhancing the convenience of mobile payments for international visitors. On July 20th, Tencent, the parent company of WeChat, announced a substantial expansion of its services for overseas users, making it easier than ever for them to seamlessly navigate the world of cashless transactions.
As a provider of innovative B2B payment services, Silkpay is thrilled to explore how this transformative step can empower businesses worldwide and boost growth.
To address the challenge faced by overseas users trying to use mobile payments within China, Tencent announced that it would enhance cooperation with various international card organizations to fully open its WeChat Pay merchant network in cities across China. The international card organizations collaborating with Tencent include Visa, Discover Global Network (including Diners Club), JCB, and Mastercard.
Foreign users can now bind their international bank cards to WeChat Pay and use it for mobile payments at a wide range of domestic merchants, including dining, transportation, travel, and retail. They can utilize various payment methods, including QR code scanning, in-app payments, mini-program payments, and more.
The process for foreign users to bind their cards with WeChat Pay involves three simple steps:
(1)Download or update the WeChat application,
(2)Access the WeChat Pay section, and
(3)Provide necessary identification and card information.
Supported international cards include VISA, DinersClub, Discover, JCB, and Mastercard.
Currently, six types of documents can be used to open a WeChat Pay account for foreigners:
(1)Passports,
(2)Travel permits for Hong Kong and Macau residents to Mainland China,
(3)Travel permits for Taiwan residents to Mainland China,
(4)Residence permits for Hong Kong and Macau residents,
(5)Residence permits for Taiwan residents,
(6)Permanent residence permits for foreigners.
Regarding transaction fees, the single transactions from WeChat Pay below 200 RMB or less made with foreign cards will be fee-free. For transactions exceeding 200 RMB, a 3% fee will be charged. If a user initiates a refund, the fee will also be refunded proportionally. (Specific instructions are subject to the prompts on the payment page.)
As of now, using foreign cards with WeChat Pay has certain transaction limits, and it only supports daily consumption within China. Features like transferring money and receiving red packets are not supported yet.
With international events like the Chengdu Universiade and Hangzhou Asian Games being held this year, the number of inbound travelers is increasing. Tencent's move to open up its WeChat Pay merchant network, along with previous initiatives like cross-border wallet integration, will greatly enhance the mobile payment experience for inbound users.
In fact, as early as 2019, WeChat Pay started supporting bank cards issued by international organizations like Visa, Mastercard, Discover, and JCB, allowing users to make payments in various sectors. However, due to reduced demand caused by the pandemic, some POS terminals supporting foreign card payments were removed in China. This, coupled with the popularity of online payments in the country, led to inconvenience for some foreign visitors seeking to use mobile payments upon arrival.
In 2019, China's State Council issued guidelines to boost cultural and tourism consumption, improve the environment for inbound tourists, enhance mobile payment solutions for them, and increase the convenience of their spending. Similarly, in 2020, the National Development and Reform Commission encouraged domestic payment service providers to collaborate with foreign card issuers within legal and regulatory frameworks to offer mobile payment services for foreign tourists.
WeChat has been exploring ways to improve the payment experience for foreign users since 2019. However, issues related to profitability, fees, and security have slowed down progress in this area. With the upcoming Chengdu Universiade and Hangzhou Asian Games, the attention on these issues has heightened.
At the end of June this year, during the "2023 Summer Davos Forum" in Tianjin, Chen Qiru, Vice President of Tencent Financial Technology, revealed that Tencent would gradually open up its WeChat Pay merchant network to international credit card organizations like VISA, allowing foreign users to bind their familiar credit and debit cards for WeChat Pay. This announcement garnered widespread attention.
Tencent's PR Director, Zhang Jun, has announced on Weibo that WeChat Pay has completed a comprehensive upgrade of its services for international bank card users.
What does this mean for overseas merchants?
It is important to note that the announcement by Tencent not only marked a significant evolution for individual users but also for merchants. The embrace of international cards means merchants can now welcome not just Chinese customers, but also international clients. This widening scope of WeChat Pay's acceptance transforms local businesses into global ventures, unlocking potential markets and diverse transactions. For businesses partnered with Silkpay, this presents a good opportunity to tap into the immense purchasing power of users worldwide.
WeChat Pay has reached 900 million customers. With the latest expansion, this figure is bound to soar even higher. With the doors open for international users, the potential client base for WeChat Pay will be limitless. Silkpay understands that behind every transaction, there lies an opportunity for businesses to grow and thrive. As the user base expands, businesses that integrate with Silkpay can position themselves to cater to a broader audience, enhancing their revenue streams and solidifying their place in the global market.
As a partner, Silkpay empowers businesses with a gateway to seamlessly integrate WeChat Pay into their operations. Our platform transcends borders, simplifying cross-border payments, fostering transparency, and cultivating trust. Through Silkpay, businesses can harness the power of WeChat Pay to strengthen their global presence, engage with international customers, and streamline their financial processes, ensuring security and compliance.
In conclusion
With the enhancement of WeChat Pay's services for foreign users, China is reaffirming its commitment to creating a more welcoming and convenient environment for international travelers. As the world continues to embrace the digital age, initiatives like these not only simplify financial interactions but also bridge cultures through technology. Whether it's a leisurely dinner, a ride on public transportation, or a shopping spree, WeChat Pay's breakthrough promises to reshape the experience of international visitors in China, one transaction at a time.
Through Silkpay, businesses can harness the potential of WeChat Pay's enhanced features to offer a more inclusive and efficient payment experience to their international clientele, thus driving growth and establishing themselves as global players. In this age of transformative connectivity, Silkpay stands as your partner in unlocking the full potential of cross-border business.
Resources:
About the author: Silkpay
Based in Paris, Silkpay provides omnichannel and secure payment solutions to help physical stores and e-commerce in Europe accept more than 30 of the world's most popular payment methods: Visa, Mastercard, CB, UnionPay, Alipay+, WeChat Pay as well as Asia-Pacific’s major e-wallets.
Silkpay is a winner of the LVMH Innovation Award. The company was also selected as a finalist for the "Money 20/20" Best Startup and in the "MPE Berlin” Startup Awards. Silkpay also won the "Best Fintech" awards from Capgemini and BPCE.
Silkpay helps merchants deliver the smoothest payment experience to their customers. We are a talented and international team driven by a single goal: to improve the customer experience and make payments simple and secure.