Daily Management Review

Chinese Tencent to expand presence in the US


07/19/2018


Tencent is stepping up its efforts to expand the payment service WeChat Pay in the US, reports CNBC. He noted that more large players will come to the market this year.



ChrisYunker via flickr
ChrisYunker via flickr
WeChat Pay allows users to display barcodes on the smartphone via the Tencent-owned WeChat messaging application. The app scans the barcode, allowing the user to pay for goods or service via a bank account in China. WeChat has more than 1 billion users, 80% of whom use the WeChat Pay function.

Tencent is aiming at expanding payment services abroad, without trying to create a local version of WeChat for other countries. Instead, the company has focused on registering sellers from other countries that accept WeChat Pay. Thus, Chinese tourists will be able to use the payment platform abroad. The company intends to announce that many stores in the US will accept payment with WeChat Pay this year.

"The US is also the market on which we are now focused... After July you will see that many outlets will accept WeChat Pay in the US," said the director for cross-border transactions in WeChat Pay Yin Jie. "In fact, now they are already accepting WeChat Pay... at the airport and in some duty-free shop ... because it is really a big country and it has a lot of sellers, and we need to do this step by step," she added.

Last year, Tencent partnered with Citcon, a mobile payment platform based in the US, to launch WeChat Pay in the United States. But the project has not yet joined any major trading network.

According to Jie, now the company is selecting suppliers of goods and services from the US that are popular among Chinese customers.

"At the first stage, we will choose some stores that Chinese tourists prefer, and duty-free shops. We will select several well-known restaurants, then we will try to add other outlets to the project, in addition, we will involve taxi service companies, for example", - told the company’s representative.

Tencent is expanding its presence in the US market while Chinese technology companies are caught in the crossfire during the "trade war" between the US and China. For example, American companies were prohibited from selling the products of the telecommunications company ZTE. The ban was lifted, but the Chinese manufacturer suffered losses.

WeChat is not a hardware product, but the current tension between the US and China could potentially complicate relations with stores that may be afraid to work with the new platform. However, it does not bother the Chinese technology giant: the company's representatives said that they simply offer American manufacturers to attract the attention of Chinese tourists to their brands.

"WeChat Pay is just a payment product, so if a Chinese tourist wants to use it and the seller is ready to accept, I think we will have a market," Jie said.

source: cnbc.com






Science & Technology

Nestle's Head: Veggie meat is new megatrend

Huawei may introduce Android replacement in August

Are US high-tech investors causing brain drain in Europe?

'Russia's Google' Yandex Was Hacked By Western Intelligence For Spying: Reuters

Reuters: Chinese hackers were stealing data from IT giants for years

China's first solar power molten salt plant sets record

WSJ announces imminent start of Boeing 737 MAX flight tests

Study: Machine learning is five times more harmful for the environment than a car

Would Singapore Be The First One To Bring Lab Grown Shrimps To The Global Market?

Apple Patents A ‘Foldable Screen’ For Creating Foldable iPhones

World Politics

World & Politics

France announces new tax for air fares

Europe Concerned Over Iran Move To Breach Uranium Enrichment Cap

Singapore To Build ‘$296 Million’ Smart Next-Gen Army Training Centre

No More Sales Of E-Cigarettes In San Francisco?

US ‘Hell-Bent On Hostile Acts’ Even After Trump-Kim Agreement, Says North Korea

Italy avoids EU sanctions for high national debt

Trump allocates 4.6 bln to help migrants

Iran Says Trump’s Belief That US-Iran War Would Be Short Is “An Illusion”