THE POINT-OF-SALE APP MARKETPLACES REPORT: How payments firms are upgrading their service offerings to meet evolving merchant demands
THE PAYMENTS INDUSTRY EXPLAINED: The Trends Creating New Winners And Losers In The Card-Processing Ecosystem
THE VOICE PAYMENTS REPORT: The next major interface for payments
This story was delivered to BI Intelligence “Payments Briefing” subscribers hours before appearing on Business Insider. To be the first to know, please click here.
Major Chinese mobile wallet WeChat Pay is opening up access to international customers, allowing cards that aren’t issued in China to be loaded into the platform, according toTechnode.
The option will beavailableto expatriates living in China, as well as “Greater China” residents from Hong Kong, Macau, and Taiwan, and will apply to cards issued by Japanese network JCB, as well as Mastercard and Visa.
This marks the first opportunity for non-Chinese users to easily use the mobile wallet. This could have two impacts:
- It could drastically grow WeChat’s volume.WeChat Pay is extremely popular, but it still lags behind Alipay, the other major Chinese mobile wallet. However, this feature could see rapid adoption among the myriad users who are likely already using WeChat for other things, but until now couldn’t add payment information. That could boost volume and grow market share, ultimately helping it continue to eat into Alipay’s dominance.
- And it could improve relationships between card networks and wallets.Card networks and issuers have historically been frustrated by third-party wallets like WeChat Pay because the majority of payments come directly from bank accounts, ultimately disintermediating them and limiting their access to what’s becoming an increasing share of the entire Chinese payment ecosystem. This could begin to improve WeChat Pay’s relationship with foreign issuers, and encourage wider card usage on the platform, which could pave a path to future work together.
And it’s a strong indication that WeChat Pay will go international soon. New mobile wallet regulations in China from the country’s central bank could stifle growth opportunities for major players like WeChat Pay. That’s pushing firms to look abroad for growth: WeChat Pay has already started to do so by forging partnerships abroad for Chinese tourists to pay using the wallet at retailers throughout the world. But this is the next step — beginning to open the wallet to non-Chinese consumers, and endearing itself to foreign issuers in the process, seems like a natural first step toward further international growth.
With existing global retail and processing partnerships, and improved network relationships, it’s looking like the wallet is ready to make moves globally, which could shake up the global payments ecosystem and rattle existing mobile players.
BI Intelligence, Business Insider’s premium research service, has written that:
- Sizes the US in-store mobile payments market and examines growth drivers.
- Analyzes headwinds that have suppressed adoption.
- Identifies three strategic changes providers can make to improve their results.
- Evaluates pockets of success in the market.
- Provides actionable insights that providers can implement to improve results.
Interested in getting the full report? Here are two ways to access it:
- Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND more than 250 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >>
- Purchase and download the report from our research store. >>