Want to do business with Chinese consumers? Then look at WeChat Pay – China’s fastest growing form of payment.
It is imperative for any e-commerce player focused on Chinese consumers to come to grips with payment processing with WeChat Pay. The adoption of e-wallets/mobile wallets in China is being driven by the ubiquity of indigenous Internet giants, including Alibaba and Tencent. Alibaba, which is “The Amazon of China,” operates Chinese alternative payment, Alipay, with currently has over 520 million active users. Tencent, which owns the Chinese Social Media platform WeChat, has over 965 million monthly active users. To reach Chinese consumers, merchants need to explore the acceptance of Alipay and now, WeChat Pay.
“Payment is quite wide and diverse. And China is indeed a unique market. It’s almost that you can think of China as one area, and can segregate it from the rest of the world,” Trevor Spinks, Head of Sales and Distribution, Scoot-Tigerair, a Singapore-based airline says.
“Scoot flies to 18 destinations in China. We will be offering WeChat as a payment option soon. The complexity for WeChat pay is huge. It doesn’t use normal software language. WeChat Pay has its own language. So one needs to work with WeChat or 3rd party experts,” says Spinks. It is important as a massive chunk of the Chinese population uses WeChat. “So it is about using what they use every day. But, yes, China has very unique requirements, and different rules and regulations.”
As a specialist in the payments arena, Chargebacks911’s COO, Monica Eaton-Cardone has a different perspective. She says: “WeChat will only accept credit cards to link to the (WeChat Social Media) account. As an e-commerce entity if you already have the functionality to deal with cross border payments through other payment rails then you have the knowledge and experience to deal with WeChat.” She goes on to say: “E-commerce companies already have numerous rails to accept payments. Accepting payments via WeChat would not be challenging anymore than your existing network of payment channels. If you deal with Paypal you can deal WeChat Pay. If payment isn’t accepted then your acquirer needs to be questioned, ensure they explain any barriers and how to fix the issue. WeChat is a form of e-wallet which is funded via a variety of payment options including international payment/credit cards as well as Chinese domestic bank cards/ accounts.”
Issues of fraud
Referring to WeChat Pay, Eaton-Cardone said as with any platform the prospect of fraud is real. She said fraudsters target new payment channels or newly implemented processes as they are easier to exploit and find weaknesses until you plug the holes.
“However with effective fraud monitoring this can be managed. Review of transactions and fraudulent behaviors using reporting tools, analytics of customer spending, how transactions were initiated, time of day which device was used, analysis of chargebacks will all help mitigate fraud issues. If monitoring is done at every available stage you will manage fraud issues. This is where we come in as we can help provide these skills and products to help,” she said.
WeChat Pay is the fastest growing payment form in China, so those companies wishing to do business with Chinese consumers should know more about accepting it. If you would like more information on accepting WeChat Pay, please reach out to LatioNews and we can put you in touch with relevant Chinese market experts.