WeChat Cross-border Online Payment – 69 Countries Covered!
While many countries still struggled to promote mobile payments in response to the COVID-19 pandemic, China was already leading the rest of the world in building up a cashless society. China was leading in user numbers and penetration rates and more than half of the Chinese population uses mobile payments each quarter. Over the years, Alipay and WeChat Pay have ruled the online payment market in China.
Following the adjustment of the COVID-19 policy, Tencent’s business both in domestic and overseas markets is expected to increase significantly. Cross-border payments from the WeChat Pay digital wallet platform now cover 69 countries and regions, with more than 1,000 overseas cooperating institutions, according to a senior manager at Tencent. More than 4 million overseas merchants have connected to the platform, said Zhang Ying, vice president of Tencent Holdings and the manager in charge of WeChat Pay.
- What is WeChat Pay?
WeChat Pay is a payment feature that is integrated into the WeChat app. While the fact that this feature is part of the larger WeChat app is unique, the overall digital wallet concept is similar to that of Apple Pay and Google Pay. It allows users to quickly make payments with their smartphones wherever they are and leave their physical wallets at home. WeChat Pay has payment options for a number of different in-store and online scenarios, and along with Alipay, it’s one of the top mobile payment systems in China.
Activating WeChat Pay is pretty straightforward, and it takes no more than 1-3 weeks. Depending on your location, you have to look for a WeChat Pay Service Provider in your country who will guide you through the procedure to set up the service.
WeChat Pay is widely used in China, and users are very comfortable with this payment gateway. In fact, besides being user-friendly, WeChat Pay guarantees secure payments through data encryption, multi-step verifications, and payment limits.
- What is WeChat Cross-border Payment?
WeChat Pay cross-border service allows customers to use Chinese currency to pay for goods or services sold by overseas merchants (both online and offline). WeChat Pay will then remit the amount in foreign currency to the receiving bank account of the merchant in the settlement.
WeChat Pay has been available to overseas vendors since early 2016. If you are a foreign brand looking at entering the China market or targeting Chinese customers overseas, WeChat Pay is definitely a payment gateway you want to focus on.
- How does it work?
- Chinese customers pay transactions in CNY
When Chinese shoppers buy goods overseas, they can pay in CNY via WeChat Pay. The local currency will be converted into CNY based on a real-time rate. No more worries about currency conversion.
- Cross-currency settlement is accepted
Major currencies are included HKD, USD, GBP, JPY, CAD, AUD, EUR, NZD, KRW, THB, SGD, RUB, DKK, SEK, CHF, and NOK. WeChat Pay settles each transaction with foreign vendors based on the price in local currency. For unsupported currencies, transactions can be made in US dollars.
- Transaction period
The transaction period is typically T+1 day settlement, based on the local bank’s transaction process, to ensure a fast and safe payment transaction.
- Limitations on the transaction
The transaction limit is decided by both the payment platform and the bank. On WeChat, the limit for each transaction is usually CNY 50,000 and the maximum limit for daily transactions is up to CNY 200,000 which is as well the annual transaction limit of WeChat “Balance”. If you go over that amount, pay via a bank card; if you go over the expenditure quota of that bank card, verify your ID info to add a new card. You can also contact your bank to raise the expenditure quota of the card. On the bank side, the transition limitation varies both on bank policy and expenditure quota setting.
- Full List of Supported Countries & Regions That Accept WeChat Pay Cross-Border Payments
|Macao SAR (China)
|United Arab Emirates
|Hong Kong SAR (China)
|United States of America (USA)
- Future expectation
Tencent has also supported the issuance of digital consumption vouchers by governments. WeChat Pay also plans to launch a palm-swiping function, using innovative technologies to make life more convenient.
It is said that “Users can link their membership cards, transportation cards, and other electronic codes to their palms to verify their memberships, facilitate consumption and pass through entry points.”. Some businesses have been invited to help create the applications.
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WeChat Pay: https://pay.weixin.qq.com/public/wechatpay
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