Alipay and WeChatPay, the two mobile payment giants in China

 

Created by Alibaba and Tencent, the two Chinese e-commerce giants, Alipay and WeChat Pay hold the largest mobile payment market share in China.

Now, thanks to these two platforms, China has quickly become the world leader in digital payment apps.

With a growing middle class and avid travel destination, international tourism is a symbol of prestige and a social marker in China. Chinese tourists have represented a market of 2.2 million tourists in 2017. This figure is potentially growing with the advent of the EU-China Tourism Year launched last February.

For merchants, the best way to attract Chinese customers now is through mobile payment experience.

Wechat, the app to which is attached the mobile payment app WeChat Pay, is now the platform with the largest number of subscribers in the world. Indeed, in the first quarter of 2020, WeChat has reached 1.17 billion users. Its popularity has made its service reach the international market. WeChat Pay is not only used in mainland China but also outside China. In 2017, 100 million accounts were opened abroad making it the world's leading mobile payment device.

 Before launching its own mobile payment app, WeChat was originally an app used as a social platform to communicate, entertain and share content.

Wechat was founded by the Tencent Group in 2011 and in less than a decade it has  become the most used app in the world. In 7 years, it has grown exponentially, with an average of 17% growth per year.

In 2014, Tencent launched its mobile payment method, named WeChat Pay.

In 2016, on the occasion of the Chinese New Year, Tencent launched Red Envelope (hongbao in Chinese). In Chinese tradition, red envelopes are sent to friends and family to celebrate the New Year. This feature has achieved an immediate success and millions of virtual red envelopes have been sent through the app.

Thanks to this strategy, WeChat Pay has managed to gain an additional 200 million users.

The parent app, Wechat, quickly won the hearts of users because it provided a private and instant chat space as a messaging tool. It has evolved very quickly and now offers multiple services.

WeChat is the all-in-one Chinese messaging app developed by Tencent. It is a mix of Whatsapp, Facebook, Instagram and Skype. WeChat also provides financial services, online shopping, games, professional working tools, e-wallet (WeChat Pay)… Its ability to offer all what users need in one app has made from it the most popular social media platform in China.

Brands can have a one-to-one interaction with the users. They are now allowed to advertise in WeChat through banner ads, Influencers and moments ads.

Alipay appeared on the market in 2004. The mobile payment app was developed by Ant Financial, owned by Alibaba Group. Alipay was first tested on Taobao as a warranty system for the buyer. Alipay temporarily held the buyer's money until the buyer received his product. This allowed the introduction of the new system, which quickly expanded outside the Taobao ecosystem.

Alipay had an average of 320 million daily active users in 2019. Furthermore, following the steps of WeChat Pay, Alipay has also reached 1.2 billion users in the first quarter of 2020. It is therefore ahead of Paypal, which has only 227 million registered accounts.

Alipay's strength is that it guarantees the best user experience by speeding up the payment process with a simple QR code scan for any purchase.

For the sake of convenience and reliability for its users, Alipay has centralized several services in its application.

The app allows money transfer between individuals, payment in shops, access to administrative services such as paying taxes or making appointments for a medical consultation, and even placing them on the stock exchange. Merchants have a personal QR code that the customer scans to pay for all their purchases at the touch of a finger. The app is linked to the user's bank account.

Alipay has also found a way to encourage users to never stop using its services by providing a service called Yue Bao. Yue Bao is a savings held in the accounts of Alipay customers. This tool benefits from a higher rate than the normal rate of banks. As a result, more and more buyers have been attracted to the use of this service.

The app generates hundreds of millions of daily visits. Beyond a simple payment solution, the service has become a real showcase for businesses. This is done through the Alipay showcases and the Alipay Lifestyle pages mentioned above.Chinese customers have made a habit of checking the app for updates on the latest trends, making it a powerful marketing tool for brands. According to the latest statistics, transactions on Alipay are around 175 million per day. Therefore, it's a real commercial boon for retailers.

According to Statista, in 2017, the number of smartphone users in China was estimated at nearly 663.37 million people. 71% of transactions on Alipay in 2016 were on mobile (65% in 2015). By 2022, this figure would amount to more than 2 billion users.

Choosing Alipay as your mobile payment solution means opting for an all-in-one application. There are, of course, other means of mobile payment. The best known to the general public in Europe or the United States are Paypal or Apple Pay. However, the latter do not take into account the specifics of China. Alipay has a very good image among the Chinese population who see it as the most professional payment service. It is now used by more than a third of the population. I order to attract Chinese tourists or Chinese clientele in general, Alipay is an essential marketing tool for retailers.

Alipay organizes annual marketing campaigns to promote sales. They revolve around the great Chinese festivals. These campaigns offer an increased visibility for the brands referenced on the platform.`

Statistically, these are the periods when Chinese spending peaks are at their peak.

The Alipay showcase is a basic feature of Alipay for merchants. It is customizable and is a real branding tool for companies. Alipay Lifestyle, another feature of Alipay, allows direct contact of brands and companies with their customers. They can broadcast content, offer services or simply interact with their customers.