As a business owner, it's important to stay ahead of the curve and understand the latest trends in the market. One trend that is rapidly gaining momentum is the use of WeChat Pay, a mobile payment feature integrated into the popular Chinese messaging app, WeChat. This payment method is becoming increasingly popular among Chinese consumers, especially for online and in-store purchases. By understanding the potential of WeChat Pay and how to integrate it into your business, you can tap into the growing Chinese market and attract more Chinese customers.
First, let's understand the scale of WeChat. WeChat, owned by Tencent, is not just a messaging app, but a super app that has over 1.3 billion monthly active users. It's a one-stop-shop for messaging, social media, mobile payment, e-commerce, and more. It's become an integral part of daily life for many Chinese people, and it's not just limited to China, it's also used by Chinese abroad.
WeChat Pay, as part of the WeChat ecosystem, is a mobile wallet that allows users to link their bank account or credit card to their WeChat account, and then they can make payments directly through the app. Think Apple Pay or Google Wallet but much more powerful. WeChat Pay provides users with a convenient and familiar way to make in-store payments by scanning a QR code, as well as online payments for e-commerce transactions. WeChat Pay also supports cross-border payments, making it a convenient option for Chinese consumers traveling abroad. In 2020, WeChat Pay processed over $1 trillion in transactions, and it's only expected to grow as China's middle class continues to expand and e-commerce continues to rise.
Here are 4 reasons why business owners should consider using WeChat Pay:
1. Reach a Growing Market
China is the world's largest e-commerce market, with the Chinese e-commerce market expected to reach US$3.3 trillion in 2025. With more and more Chinese consumers using WeChat for their daily activities, including shopping, businesses that accept WeChat Pay will be well-positioned to tap into this growing market.
2. Convenience for Chinese Customers
WeChat Pay is a convenient payment option for Chinese customers, as they can make payments directly through the app, both online and in-store, without the need to carry cash or credit cards. By accepting WeChat Pay, businesses can make it easy for Chinese customers to make purchases through the WeChat app, which they're already using for other daily activities.
3. Better Customer Experience
By accepting WeChat Pay, businesses can provide Chinese customers with a seamless and familiar payment experience, improving customer satisfaction and loyalty.
4. Cross-border payments
WeChat Pay supports cross-border payments, making it a convenient option for Chinese consumers traveling abroad. China is the world's largest outbound tourism market, having spent $255 billion in 2019, and it's projected to continue growing post-COVID. As Chinese tourists continue to travel abroad, they are looking for convenient and familiar payment options, and WeChat Pay fits the bill.
Understanding the potential of WeChat Pay and how to integrate it into your business can be key in tapping into the growing Chinese market and attracting more Chinese customers. With 1.3 billion monthly active users and over $400 billion in annual transactions in 2021, WeChat and WeChat Pay are not to be overlooked as a potential revenue stream for your business.