Cash and card payments are starting to become somewhat secondary in many countries, and China is the clearest example. Practically no one uses these forms of payment in their daily lives. Chinese citizens pay for almost everything with their cell phones, with WeChat Pay and Alipay, so it is impossible to find an establishment that does not have mobile payment systems.
Two of the most widespread systems are: Alipay, owned by Alibaba and used by 95% of users, and WeChat Pay, chosen in 88% of cases, according to data from Turespaña. In this article we will focus on the latter, which is highly valuable information for any business that wants to attract Chinese tourists and provide a good service.
1. What is WeChat Pay?
In 2013, WeChat Pay, a mobile payment service, was launched within the WeChat application itself, a tool that influenced the fact that in 2014 WeChat consolidated its position as the most popular platform in China, with more than 890 million active users per month, according to DataDrew.
This digital wallet, known as Weixin Pay in China, is a digital wallet connected to the WeChat app, owned by the technology giant Tencent, which in recent years has quickly become a key payment method for businesses looking to reach Chinese shoppers.
WeChat Pay, or Weixin Pay in China, is a digital wallet connected to the WeChat app, which has become a key payment method for Chinese tourists
What is WeChat Pay used for?
WeChat Pay is a service with multiple capabilities, including:
- Allowing transactions to be made via QR codes.
- Allowing transactions in different currencies.
- Offering the possibility to pay in stores.
- Sending red envelopes that are given as gifts in China on special occasions.
- Sending money to other people or groups of people on your contact list.
- Paying bills.
In addition, this service currently has six different payment products: quick payment, payment with QR code, payment with mini-program, web payment, payment with official account, in-app payment.
2. 5 Key facts about WeChat Pay
WeChat Pay is essential for any foreign business that wants to attract Chinese tourists, so being aware of some relevant data can encourage the implementation of this tool in your marketing strategy.
- It has 800 million active users making monthly payments.
- In addition, it has a penetration rate of 79% in China, and makes up 34% of the total mobile data traffic.
- It is preferred in 88% of the cases by Chinese citizens when paying in any location and type of establishment.
- Currently, in China, cash payments do not exceed 20% of total transactions.
- It has a market share of 42%.
3. Requirements for a WeChat Pay Merchant account
In order to create a WeChat Pay account, you will need to provide the following information:
- Company registration number.
- Copy of the business license with the company seal.
- Contact details.
- Legal details.
- Company bank account.
- Company financial records (in terms of turnover and expected transaction volume).
After submitting this information, WeChat will verify and approve your application, which may take about a week.
The requirements for creating a WeChat Pay account include providing information ranging from company registration number to company financial records
4. How to integrate WeChat Pay into your business
There are several ways to integrate WeChat Pay into your business:
Website
Users can scan the QR code on the payment page and confirm it immediately. They just need to select the product, the QR code will appear in the payment methods, the price is displayed, the user confirms it and the payment is accepted.
Physical retail store
The QR code can be scanned in the store and immediate payment can be confirmed. The user visits the store, sees the QR code in the store, scans it and is shown the price on the screen for confirmation.
At the point of sale the cashier enters the amount due in local currency and the user scans and confirms. The price is displayed on the screen and payment is made. The EDC system prints the confirmation instantly.
Official account
It is possible to purchase directly from the official WeChat account or access an eCommerce store via WeChat Pay. The user views the product, clicks the pay button, confirms the payment with their app password and it is processed.
WeChat Pay is so functional that you can integrate it into any type of business
5.How to create a WeChat Pay Merchant account
There are two ways to create a WeChat Pay account for your business, in addition to meeting and fulfilling the requirements above, depending on where your business is registered.
1. If your company is registered outside of China, except for the UK and Hong Kong, you will be required to manage your account with domestic financial institutions.
First, head to the official website in your browser, and click on the “Join us” button. Choose the “I am a merchant” option and select “Next”, where you will be asked for your country. Enter the name of your country and you will end up with the contact list of your local institution for the application.
2. If your company is registered in the UK or Hong Kong, you have the option to connect without the need for an institution.
You will be asked to submit the necessary documents for your application via the online merchant platform. You will then sign the agreement form.
As soon as your application is accepted, your account will be set up. Some general information about your business will be required: official company licenses, country of origin, address, representation and contact information.
Depending on where your company is registered, you will need to follow different steps to set up a WeChat Pay Merchant account
6. Conclusions
We have already seen how important it is to implement WeChat Pay in your business, whatever type of business it is, and some extra knowledge and support can make all the difference.
If you need help implementing this application into your business, get in touch with InfluChina through hello@influchina.com, a social media agency in China that is dedicated to promoting businesses with a tourist influx on Chinese social networks by means of influencers.
FAQ
WeChat Pay FAQ
What is WeChat Pay?
WeChat Pay, known as Weixin Pay in China, is a digital wallet used in this Asian country connected to the WeChat application.
What does WeChat Pay do?
WeChat Pay has multiple capabilities:
- It allows transactions to be made via QR codes.
- It allows transactions in different currencies.
- It offers the possibility to pay in stores.
- Sending money to other people or groups of people on your contact list.
- Paying bills.
How can I implement WeChat Pay in my business?
If you need help implementing WeChat Pay in your business, please contact InfluChina, a social media agency in China that is dedicated to promoting businesses with tourist influx on Chinese social networks by means of influencers.
What are the requirements to create a WeChat Pay Merchant account?
The requirements for creating a WeChat Pay Merchant account are as follows: provide company registration number, copy of business license with company seal, contact details, legal details, company bank account and company financial records in terms of turnover and expected transaction volume.
How can WeChat Pay be integrated into a business?
WeChat Pay can be integrated into a business in several ways:
- Through the website, allowing users to scan a QR code on the payment page and confirm payment.
- In a physical store, where customers can scan the QR code in-store and confirm payment immediately.
- Using the official WeChat account, allowing users to purchase directly from the official account or access the e-commerce store through WeChat Pay.