WeChat Pay is an easy-to-use mobile payment method integrated within the extremely popular instant messaging platform in China – WeChat. Though WeChat started as an instant messaging platform, it quickly evolved into a social networking, file sharing and gaming platform with a potential to be more. People can shop, order cabs and even pay electricity bills via the app using the inbuilt wallet – WeChat Pay.
Why is it talked about around the world?
Digital payments are becoming a big part of our daily lives and the Chinese with their e-wallets are one of the early adopters. The young, tech-savvy and urban Chinese shopper is turning China into a cashless society. More than 900 million users chat, connect and shop via WeChat. Almost, 600 million people have connected their credit cards to enable payments through WeChat Pay. 40% of all mobile payments in China are processed via WeChat Pay, that’s $1.5 trillion in transactions! A big reason for this shift to mobile payments is the ease and simplicity of using WeChat Pay for both buyers and sellers. Making a payment or accepting one, takes a matter of seconds. It is a trend that is taking hold across the world. You can see how simple it is in this video:
How does it impact businesses across Europe, the US and the rest of the western world?
The number of Chinese tourists travelling the world is constantly increasing. Since 2016 there’s been a 103% rise in the number of Chinese tourists to Europe and they’re spending more than their U.S and European counterparts combined. In fact, Chinese account for 50% of luxury sales in Europe with each family spending, on average, $5,305 on travel per year.
Download our infographic: Why WeChat Pay will be the next payment phenomenon in Europe
The biggest reason for this extraordinary spending overseas is the high tax on luxury items in China combined with the abundance of counterfeit products available in the country. Shopping is high on the to-do list of every brand conscious Chinese traveller. Offering these tourists, the ability to purchase with their preferred payment method makes perfect business sense, especially if your business services the tourism, entertainment and luxury good sectors.
How can I set up WeChat Pay?
Businesses can set up WeChat Pay to reach these potential shoppers. But unless you have a company registered in China, you’ll need to apply for what’s called a WeChat cross-border account. To apply for this account, you can connect with Tencent directly. But the easiest and most popular option for merchants is to use one of WeChat’s certified partners like SafeCharge. Applying through SafeCharge makes the process a lot smoother. No need for paperwork and we make the application on your behalf. More importantly, SafeCharge manages the payment transfers and the settlements to your account.
From a technical point of view, those who want to connect directly via WeChat Pay API have to deal with documents in Chinese…whereas integrating with SafeCharge is easy. We can get you up and running within 10 days without the need to apply for a cross-border payment account. WeChat Pay opens up possibilities for your business, all you have to do is offer it to the millions of potential customers out there.
It’s easy to see why 85% of businesses choose to go through a WeChat certified partner such as SafeCharge. In addition to WeChat Pay, SafeCharge can also provide you access to a host of additional local payment options to help your business connect with shoppers around the world.