Introducing WeChat Pay
WeChat, China’s smash hit chat app, has long been a bellwether for the future of mobile messaging. It was first to popularize putting brands in chat and integrating third-party services, two trends Facebook-owned WhatsApp and Messenger and others are jumping on, and it looks like payment is the next major focus. Beyond text messaging, voice and video calling, the service includes a social network timeline, branded accounts, shopping, games and more. Payment is another area and over the past year, Tencent has put considerable focus into its China-based service, WeChatPay, which can be used to transfer money between WeChat users (peer-to-peer) and make payments online and with participating offline retailers. Tech In Asia tested it out for a day in China and came away reasonably impressed, although it seems there’s room for improvement.Tencent previously disclosed that 200 million user cards were attached to the payment service as of November 2015, thanks to a genius campaign that taps into China’s tradition of sending red envelopes during New Year, but now it said the figure is “safely more than 300 million” while it also gave us clues as to how large its volumes could become.(Source: TechCrunch)
What is WeChat?
What is WeChat Official Account?
WeChat Official Accounts are a service launched for companies, organizations, government, media, celebrities, and enterprises. Official accounts can be used to promote brands to millions of users. For vendors, a WeChat official account is not only an essential way to reach customers, but also required before applying for the WeChat Pay service.
About WeChat Pay
What is WeChat Pay?
WeChat Pay is a payment feature integrated into the WeChat app, users can complete payment quickly with smartphones. WeChat has Quick Pay, QR Code Payments, In-App Web-Based Payments, and Native In-App Payments, all to fulfil the full range of scenarios your customers expect to fulfill different payment situation. Combined with WeChat official accounts, WeChat Pay service explores and optimizes o2o consumption experience, provides professional internet solutions for physical business. It is the best choice of mobile payments.
What features does WeChat Pay have?
WeChat has Quick Pay, QR Code Payment, In-App Web-based Payment, In-App Payment, to fulfill different payment situation.
How will overseas vendors benefit from WeChat Pay?
More and more Chinese people choose to travel abroad. When a buyer purchases a product from an overseas vendor, this spot exchange rate will be used to convert the foreign currency into CNY. The converted CNY amount will then be deducted from the buyer’s account when the buyer confirms the deal in WeChat Pay. As soon as the buyer finishes the payment, he will follow the overseas vendor’s official account. They can still make purchases through this account after they go back to China.
Settlement & Fee
What currencies does WeChat Pay cover?
WeChat Pay supports major currencies including but not limited to GBP, HKD, USD, JPY, CAD, AUD, EUR, NZD, KRW settlement. WeChat Pay will have settlement with vendors according to the price in local currency. For unsupported currencies, trade can be made through settlement on US dollar.
How is exchange rate determined?
The spot exchange rate provided by partner settlement banks (China Construction Bank or China Citic Bank) is used in the WeChat Pay Cross-Border Service. When a buyer purchases a product from an overseas vendor, this spot exchange rate will be used to convert the foreign currency into CNY. The converted CNY amount will then be deducted from the buyer’s account after confirming the transaction in WeChat Pay. For unsupported currencies, transactions will be settled with US dollars.
How to have settlement?
When the buyer has completed the payment, the amount will be allocated to Citcon settlement bank for currency exchange. After collecting payment from the buyers’ account instantly, WeChat Pay will buy foreign currency in T+1 day according to the spot rate that the settlement bank provides. When merchant’s turnover accumulates to 100 USD (lower limit), we will transfer payments to the receiving bank account of vendors immediately.
Who will be charged for remittance fee?
WeChat Pay will pay the remittance fee for the settlement banks. WeChat Pay is not responsible for any fee charged by the intermediary or receiving bank.