November 17, 2016
WeChat Pay, an online payment method in China that grew out of the popular messaging app and social media platform WeChat, has become increasingly important for businesses that want to sell there. This week, two Dutch payment providers announced they will be integrating WeChat Pay for their e-commerce merchants selling in China. E-commerce acquirer and processor Adyen and PSP Smart2Pay each announced this week that they will support WeChat Pay.
In its announcement with Smart2Pay, a WeChat spokesperson said WeChat Pay has achieved 30 percent market share in online payment in China and Smart2Pay CEO Jamie Flinterman touted the payment method’s simplicity and its 400 million active users. Adyen said WeChat Pay is taking its place next to Alipay and Union Pay as “a keystone payment method” for companies that want to reach Chinese users, especially on mobile devices.
“Today’s Chinese shopper presents a huge opportunity. They are predominantly young, mobile-savvy and enthusiastic about international brands,” Adyen said in a blog post about the partnership. “In fact 15 percent of the total population is expected to make a cross-border purchase by the end of 2016, amounting to $86 billion in total transactions. By 2020 this will likely to climb to around 70 percent—which will have a huge impact on global e-commerce. In terms of mobile, China leaves Europe and the U.S. in the dust. In major cities like Shanghai you’ll find QR codes embedded onto the tables in restaurants, so diners can pay their bill with an app, and Chinese use their phones to pay for everything from cinema tickets to utility bills. It is within this context that we see the rise of WeChat Pay.”