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Writer's pictureThomas Ferstl

The importance of Alipay and WeChat Pay

Updated: Jan 25, 2023





Chinese mobile payment platforms like Alipay and WeChat Pay are important for retailers because they are extremely popular in China, especially among younger consumers.


According to a survey by the China Internet Network Information Center, as of December 2020, about 67% of internet users in China use mobile payment platforms such as Alipay and WeChat Pay. This represents a significant portion of the Chinese population, as there are currently over 940 million internet users in China. It's worth noting that these figures refer specifically to the use of mobile payment platforms in China, and the number of users outside of China is likely to be smaller. However, both Alipay and WeChat Pay are expanding their operations globally and are increasingly being used by Chinese tourists and other consumers around the world ... if retailers want to attract these consumers, they will need to accept these payment methods.

In addition, these platforms offer a variety of features that can make it easier for retailers to do business, such as the ability to track sales, manage inventory, and analyze customer data. Finally, accepting Alipay and WeChat Pay can also help retailers to expand their customer base beyond the borders of China, as these payment platforms are increasingly being used by Chinese tourists and other consumers around the world.


Alipay is a Chinese mobile payment platform that allows users to make payments, transfer money, and access a range of financial services using their mobile devices. It was launched in 2004 by the Chinese e-commerce company Alibaba Group and has since become one of the most popular payment platforms in China. Alipay is available as a mobile app that can be downloaded on Android and iOS devices, and it can be used to make payments at participating merchants, online, and at point-of-sale terminals. In addition to its basic payment functions, Alipay offers a range of other features and services, such as the ability to track expenses, manage finances, and access loans and other financial products.


WeChat Pay is a Chinese mobile payment platform that is integrated into the popular messaging app WeChat. It allows users to make payments, transfer money, and access a range of financial services directly from within the app. WeChat Pay was launched in 2013 and has since become one of the most popular payment platforms in China. It is available on Android and iOS devices and can be used to make payments at participating merchants, online, and at point-of-sale terminals. In addition to its basic payment functions, WeChat Pay offers a range of other features and services, such as the ability to track expenses, manage finances, and access loans and other financial products.


The major payment trends with Chinese mobile payment platforms like Alipay and WeChat Pay are:


* Increased use of QR codes: Many Chinese mobile payment platforms rely on QR codes for making payments. Consumers can scan the QR code at a retail store, for example, and the payment will be automatically deducted from their account. This makes the process of making a payment quick and convenient, and it has helped to drive the widespread adoption of mobile payments in China.


* Expansion beyond China: Chinese mobile payment platforms are starting to expand beyond China's borders, as they are increasingly being used by Chinese tourists and other consumers around the world. This trend is likely to continue as these platforms look to capitalize on the growing demand for convenient and secure mobile payment options.


* Integration with other services: Many Chinese mobile payment platforms are starting to integrate with other services, such as social media and messaging apps. For example, WeChat Pay is integrated with the popular messaging app WeChat, which allows users to make payments directly from within the app. This trend is likely to continue as these platforms look to offer a more seamless and convenient payment experience for their users.


* Growing competition: The mobile payment market in China is highly competitive, with several major players vying for market share. This competition is likely to continue as new entrants enter the market and existing players look to expand their reach and offer new features and services.


Planet Payment is a global payment service provider that offers a range of payment processing solutions, including support for Alipay and WeChat Pay. If you want to accept these payment methods in your shop with Planet Payment, please contact Thomas.ferstl@weareplanet.com directly.


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