China’s mobile payment platforms are getting a major upgrade. According to reports from Tencent earlier this week, users will now be able to link international cards to their WeChat Pay or Alipay accounts. As any visitor to Beijing can attest to, WeChat Pay and Alipay are at present only convenient for those already ensconced in the China system. For those who do not have a Chinese bank account or phone number, both payment platforms have been all but inaccessible.
To solve access problems, Tencent is now working with five international card operations to diversify payment options and lower barriers to entry for international users. International cards currently looking to collaborate with Tencent include Visa, Mastercard, American Express, and the Japanese card network JCB. Tencent has announced that they are intending to pull off a three-step plan to get the international card program operational. First, WeChat Pay will begin a pilot program that allows for use of international cards on the railway ticket platform 12306.cn as well as with Didi. Tencent will then gradually expand options for usage of international cards for other purchases.
As we recently reported, Alipay announced that it now allows international cardholders to link foreign cards to an online prepaid card service provided by the Bank of Shanghai. The prepaid card option would allow international users to bypass requirements for a registered bank account. At present, users without China-issued cards can only use limited functions and load a maximum of RMB 3,000 into their wallet.
Both mobile payment platforms are eager to tap into the traveler market. In 2018 alone, the number of inbound tourists reached 141.2 million, a year-on-year increase of 1.2 percent. These travelers present a lucrative opportunity for mobile payment platforms to continually expand their user base.
Despite these exciting developments, new would-be users shouldn’t rejoice just yet. Regulators will drive strict guidelines for international usage, including policies aimed to combat money laundering. There will also be limited accepted uses for international cards in the near future and scaling up is likely to be complex and incremental.
Photo: marketingtochina.com
