WeChat Pay is a relatively newcomer to the Chinese payment system, but it managed to achieve incredible popularity almost immediately.
Mobile finance: how WeChat Pay works.
Back in 2017, Tencent announced that the number of active users of mobile payments through the WeChat Pay wallet was 600 million, while its main competitor, Alipay from Alibaba, had 450 million customers at that time. True, WeChat Pay loses a lot in terms of the volume of transactions. Only 20% of transactions via the service exceed 1,000 yuan.
However, WeChat Pay has become a part of the daily life of the Chinese people. You can pay with it anytime, anywhere - it is accepted almost everywhere, from taxis and subways to markets and hospitals.
Only 20% of transactions via the service exceed 1,000 yuan.
As part of the special project "Mobile Finance", the PaySpace Magazine editorial board offers to get acquainted with this payment system and find out why the Chinese are so fond of WeChat Pay.
What is WeChat Pay?
WeChat Pay is a payment solution integrated into the wildly popular Chinese messenger WeChat, owned by Tencent. It is accessed through the Wallet tab in the messenger app. With it, users can send money to friends, pay for goods online, top up mobile accounts, invest, pay bills, order and pay for taxis, buy tickets, book hotels, and much more.
WeChat is owned by online giant Tencent.
It is worth noting that this service is conceived as one of the important sources of income for Tencent. The company's strategy is very different from Western competitors. For example, Facebook generates about 95% of its revenue from advertising, while for Tencent this figure is only 19%. Most of the company's funds come from its services, and WeChat Pay plays an important role among them.
How does WeChat Pay work?
Since WeChat Pay is integrated into the multifunctional WeChat application, the service will work on any smartphone where it is installed. WeChat is preinstalled on 90% of smartphones in China, so you can use the wallet right away, without any extra steps.
"Wallet" may not be displayed in the international version of the messenger.
Therefore, to become a WeChat Pay user, you need an account in the WeChat messenger, a passport, a bank card and a mobile phone linked to it.
It is worth noting that the "Wallet" option may not appear at all in the WeChat application menu. This happens with users who have downloaded the international version of the messenger. In order for the button to go to the wallet to appear, you need to go to the settings and change the interface language to Chinese. After that, you can set English back, and the Wallet button will remain.
When registering in a wallet, you should either use a Chinese bank card or be in China (see why - read on). Linking a card is quite simple - you need to specify its details and your name. Remember that the name input field is case sensitive.
When registering, you must either use a Chinese bank card or be in China.
If the card is successfully linked, WeChat will debit a small amount from it and then return it back to the client's balance.
Using the wallet, you can make the following types of payments:
WeChat Pay allows several types of payments.
At the same time, with commissions, things are almost the same as with AliPay - for most transactions there are none. A commission of 0.1% is charged in case of withdrawals of more than 10 thousand yuan, as well as for cross-border transfers.
In addition, you can maintain a corporate account in WeChat Pay. Typically, it is used to link to a company's website, integrate with an app or WeChat store. However, you can connect your company to WeChat Pay either if it is registered in the Chinese mainland, or by creating a cross-border WeChat payment account and connecting it to your foreign bank account.
How to use WeChat Pay?
This mobile wallet has a huge variety of uses. Let's consider the most common, everyday options:
To pay for a metro ride - to buy a token or a travel pass in the terminal, bring your QR code to the scanner.
With WeChat Pay, you can pay for subway rides.
To order and pay for a taxi - a ride with Didi Chuxing is paid in the wallet itself, and regular taxis are paid by scanning the driver's QR code - stickers with them are usually on the front of the car. In this case, the amount must be entered and confirmed by yourself.
WeChat Pay allows you to pay for taxi rides in China.
For shopping - scan the seller's QR code. Usually stickers with them are placed at the checkout or directly on the payment terminal.
Almost all shops accept payments with WeChat Pay.
In restaurants and cafes - as a rule, the waiter brings the QR-code of the establishment at the request of the guest. By the way, WeChat Pay has the ability to split the account - an equal amount is debited from all specified users for payment, for example, a restaurant bill.
WeChat Pay is accepted in restaurants and cafes.
Gadgets - You can pay with WeChat Pay in gadgets built into your wallet. In particular, this can be used to pay for hotels, plane and train tickets, bicycle rental, etc.
The hotels also accept WeChat Pay.
In markets and on the street - in China, even street food vendors accept payments via mobile wallets. Foreigners should remember the word Weixin, which is WeChat in Chinese. In response, the seller will willingly show his QR code and accept payment.
Even street vendors and market vendors accept WeChat Pay.
Can Ukrainians use WeChat Pay?
All foreigners wishing to use WeChat Pay, Tencent met halfway back in January, adding the ability to link foreign credit cards to the service. Thus, without having a Chinese bank account, you can still use this wallet. However, for this you need to download the WeChat application directly in China, Hong Kong, Macau or Taiwan. Only in the local version of the app can credit (but not debit) cards from MasterCard, Visa and JCB be linked. At the same time, you can only pay from them, and it is still impossible to transfer and withdraw funds to such cards to non-Chinese citizens.
The wallet can be used by expats living in China.
This opportunity is mainly intended for expats living in China. Living in China without WeChat Pay or Alipay is like living in Ukraine without cash and bank cards. According to the survey, only 10% of Chinese consumers prefer to pay with cash or credit cards instead of WeChat Pay or Alipay. According to TechNode, 64% of foreigners living in China use WeChat Pay for their daily purchases.
However, it should be noted that the service does not yet seek to conquer other countries. Its overseas expansion is aimed at meeting the needs of millions of Chinese tourists (who, by the way, are very willing to spend) abroad.
Mobile finance: how WeChat Pay works.
Back in 2017, Tencent announced that the number of active users of mobile payments through the WeChat Pay wallet was 600 million, while its main competitor, Alipay from Alibaba, had 450 million customers at that time. True, WeChat Pay loses a lot in terms of the volume of transactions. Only 20% of transactions via the service exceed 1,000 yuan.
However, WeChat Pay has become a part of the daily life of the Chinese people. You can pay with it anytime, anywhere - it is accepted almost everywhere, from taxis and subways to markets and hospitals.
Only 20% of transactions via the service exceed 1,000 yuan.
As part of the special project "Mobile Finance", the PaySpace Magazine editorial board offers to get acquainted with this payment system and find out why the Chinese are so fond of WeChat Pay.
What is WeChat Pay?
WeChat Pay is a payment solution integrated into the wildly popular Chinese messenger WeChat, owned by Tencent. It is accessed through the Wallet tab in the messenger app. With it, users can send money to friends, pay for goods online, top up mobile accounts, invest, pay bills, order and pay for taxis, buy tickets, book hotels, and much more.
WeChat is owned by online giant Tencent.
It is worth noting that this service is conceived as one of the important sources of income for Tencent. The company's strategy is very different from Western competitors. For example, Facebook generates about 95% of its revenue from advertising, while for Tencent this figure is only 19%. Most of the company's funds come from its services, and WeChat Pay plays an important role among them.
How does WeChat Pay work?
Since WeChat Pay is integrated into the multifunctional WeChat application, the service will work on any smartphone where it is installed. WeChat is preinstalled on 90% of smartphones in China, so you can use the wallet right away, without any extra steps.
"Wallet" may not be displayed in the international version of the messenger.
Therefore, to become a WeChat Pay user, you need an account in the WeChat messenger, a passport, a bank card and a mobile phone linked to it.
It is worth noting that the "Wallet" option may not appear at all in the WeChat application menu. This happens with users who have downloaded the international version of the messenger. In order for the button to go to the wallet to appear, you need to go to the settings and change the interface language to Chinese. After that, you can set English back, and the Wallet button will remain.
When registering in a wallet, you should either use a Chinese bank card or be in China (see why - read on). Linking a card is quite simple - you need to specify its details and your name. Remember that the name input field is case sensitive.
When registering, you must either use a Chinese bank card or be in China.
If the card is successfully linked, WeChat will debit a small amount from it and then return it back to the client's balance.
Using the wallet, you can make the following types of payments:
- Quick Pay - the user brings his unique QR code to the scanner, after which the required amount is debited from him.
- QR-Code Payment - the user scans the seller's QR-code, independently enters the amount and confirms the payment with his password.
- In-App Web-based Payment - used to pay for goods and services on the seller's WeChat page. For example, this is how purchases are paid on the large JD.com marketplace.
- In-App Payment - used for payments in third-party applications, the developers of which have integrated WeChat Pay SDK. By choosing WeChat Pay as a payment method in a third-party application, the user's wallet opens, where he confirms the payment, and then the same application in which the transaction was initiated. This is how Didi Chuxing works.
WeChat Pay allows several types of payments.
At the same time, with commissions, things are almost the same as with AliPay - for most transactions there are none. A commission of 0.1% is charged in case of withdrawals of more than 10 thousand yuan, as well as for cross-border transfers.
In addition, you can maintain a corporate account in WeChat Pay. Typically, it is used to link to a company's website, integrate with an app or WeChat store. However, you can connect your company to WeChat Pay either if it is registered in the Chinese mainland, or by creating a cross-border WeChat payment account and connecting it to your foreign bank account.
How to use WeChat Pay?
This mobile wallet has a huge variety of uses. Let's consider the most common, everyday options:
To pay for a metro ride - to buy a token or a travel pass in the terminal, bring your QR code to the scanner.
With WeChat Pay, you can pay for subway rides.
To order and pay for a taxi - a ride with Didi Chuxing is paid in the wallet itself, and regular taxis are paid by scanning the driver's QR code - stickers with them are usually on the front of the car. In this case, the amount must be entered and confirmed by yourself.
WeChat Pay allows you to pay for taxi rides in China.
For shopping - scan the seller's QR code. Usually stickers with them are placed at the checkout or directly on the payment terminal.
Almost all shops accept payments with WeChat Pay.
In restaurants and cafes - as a rule, the waiter brings the QR-code of the establishment at the request of the guest. By the way, WeChat Pay has the ability to split the account - an equal amount is debited from all specified users for payment, for example, a restaurant bill.
WeChat Pay is accepted in restaurants and cafes.
Gadgets - You can pay with WeChat Pay in gadgets built into your wallet. In particular, this can be used to pay for hotels, plane and train tickets, bicycle rental, etc.
The hotels also accept WeChat Pay.
In markets and on the street - in China, even street food vendors accept payments via mobile wallets. Foreigners should remember the word Weixin, which is WeChat in Chinese. In response, the seller will willingly show his QR code and accept payment.
Even street vendors and market vendors accept WeChat Pay.
Can Ukrainians use WeChat Pay?
All foreigners wishing to use WeChat Pay, Tencent met halfway back in January, adding the ability to link foreign credit cards to the service. Thus, without having a Chinese bank account, you can still use this wallet. However, for this you need to download the WeChat application directly in China, Hong Kong, Macau or Taiwan. Only in the local version of the app can credit (but not debit) cards from MasterCard, Visa and JCB be linked. At the same time, you can only pay from them, and it is still impossible to transfer and withdraw funds to such cards to non-Chinese citizens.
The wallet can be used by expats living in China.
This opportunity is mainly intended for expats living in China. Living in China without WeChat Pay or Alipay is like living in Ukraine without cash and bank cards. According to the survey, only 10% of Chinese consumers prefer to pay with cash or credit cards instead of WeChat Pay or Alipay. According to TechNode, 64% of foreigners living in China use WeChat Pay for their daily purchases.
However, it should be noted that the service does not yet seek to conquer other countries. Its overseas expansion is aimed at meeting the needs of millions of Chinese tourists (who, by the way, are very willing to spend) abroad.
