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Chinese super apps open door to Visa, Mastercard and others

Chinese super apps open door to Visa, Mastercard and others

Visa and Mastercard are now to be integrated into the accounts of China’s most popular super app platforms, allowing card holders on the international brands to pay for goods and services at millions of outlets across China.

Digital payments

Chinese super apps open door to Visa, Mastercard

The move marks a revival of efforts by Alipay and WeChat Pay to accept foreign credit cards after they provided some limited access in late 2019.

The companies said previously that they were acting under the guidance of Chinese regulators, as Beijing seeks to attract foreign investment and international travellers to boost its flagging economy.

Alipay, China’s largest payment app, announced that overseas users can link cards issued by Visa and Mastercard, as well as Diners Club and Discover to their digital wallets. The change takes effect immediately.

“As the Chengdu [World University Games] and the Hangzhou Asian Games approach, more and more foreign tourists have come to China, and they may need to use mobile payments for basic necessities of life,” said Alipay in a statement.

A day earlier, Tencent, which owns the country’s second most popular payment app WeChat Pay, made a similar announcement. WeChat Pay is officially known as Weixin Pay in China.

WeChat users can now link credit or debit cards issued by Visa, Mastercard, JCB or Discover for payment at tens of millions of merchants in China.

China is almost a cashless society with $434 trillion in electronic transactions annually. And more than 80% of the transactions for daily consumption take place on mobile platforms, according to figures from Chinese card payment company UnionPay.

Alipay and WeChat Pay are dominant in digital payment services, accounting for a combined 91% market share.

But for most foreign visitors, accessing the apps’ services was previously impossible — they needed to have a mainland Chinese bank account and a local mobile phone number.

In 2019, Alipay and WeChat started allowing the use of foreign credit cards on their super apps as Chinese regulators eased restrictions. But only select Chinese merchants were allowed to process the cards.

The two payment giants began to loosen those conditions in recent months as the country emerged from three years of stringent Covid restrictions.

Last month, Mastercard announced that its cardholders can “pay like a local” in China by linking their cards to the Alipay app and making cashless payments at tens of millions of merchants across the country. The move was expanding on a partnership established in 2019 between the two companies, Mastercard said.

“As travel and tourism rebound, Mastercard is delighted to partner with Alipay to enable cardholders worldwide to enjoy the ultimate in payments security, convenience, and peace of mind as they work, play, rest, and roam during their journeys to China,” Dennis Chang, executive vice president and division president for Greater China at Mastercard, said in a statement.

 

The post Chinese super apps open door to Visa, Mastercard and others appeared first on Payments Cards & Mobile.

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