A guide to WeChat Pay

China has the world's largest population and second largest economy.

However, its payments infrastructure is still a mystery to most non-Chinese businesses...

If you are doing business in or with China, having a WeChat official account and being integrated with WeChat Pay is essential.

Let's look closer at what WeChat Pay is and how it works.

What is WeChat?

WeChat (known as Weixin in Chinese) is a Chinese multipurpose messaging and social media app. It was established in 2011 by the Chinese tech company Tencent, and today it is estimated to have over 1.3 billion monthly active users.

It is often labelled 'the everything app' or a 'super app' because of its range of functions and services accessible. It enables users to make payments (see below), shop, book appointments, hail rides, and much more, without leaving the app.

All of this is done within the app itself and is achieved through the use of mini-programs that function almost like websites or 'sub-applications'.

WeChat is an essential tool for personal communication and digital commerce in China. And it is used by millions of Chinese expats abroad, too.

WeChat Official Accounts

WeChat Official Accounts are verified accounts for businesses, organizations, governments, and high-profile public figures.

For businesses, the official account often functions like a mixture of a website, storefront, and social media hub. Products and services can be advertised and sold directly on them.

What is WeChat Pay?

WeChat Pay is a mobile payment and digital wallet feature that was first integrated into WeChat in 2013. It enables users to make mobile payments or move funds to complete online transactions quickly and efficiently.

WeChat Pay is China's most commonly used digital payment option. As of 2023, it boasts of 1.133 billion active users. This figure is projected to increase to 1.318 billion in 2025.

How does WeChat Pay work?

WeChat Pay integrates directly with users' bank accounts. Domestic Chinese citizens can simply link their own WeChat wallet account to their debit cards in a few clicks. (For non-Chinese users, an additional identity verification is required before certain in-app payment functions are fully available).

WeChat has multiple mobile payment systems and payment methods now, including the following:

Quick Pay payment method

QR codes can be generated on WeChat's Quick Pay page. The user shows the QR code to the merchant for them to scan which initiates the transaction. It is also an efficient way of making mobile payments offline.

QR code payments

The QR code payment enables merchants to generate a transaction QR code. Customers open WeChat and scan this QR payment code, to complete payment. It is used on websites, physical stores, media advertising, and more. A staggering 614 million people used it in 2023 alone.

In-app payments

This mobile-based payment method can be done in-app or on the web.

For in-app use, the merchant uses an open software development kit (SDK). It is built into the mobile app to call the WeChat payment module and process the payment.

For web-based payments, customers open the vendor or payment page's HTML5 pages in WeChat. Then use the JSAPI interface to the payment page to call the WeChat payment module. This happens in a number of scenarios, including:

• When users enter transaction pages on vendors' official WeChat accounts
• When users receive vendors' payment URL in a chat or in 'Moments' (the newsfeed feature on WeChat)
• When users scan payment QR codes displayed within vendors' pages and open it in a browser to complete their payment

Red envelopes

In Chinese culture, red envelopes with money inside are given as gifts during holidays or special occasions like weddings.

In WeChat, the Red Envelope feature allows users to send virtual red envelopes. Recipients can access the red envelope in an instant message with just one click. Once opened, the digital money automatically goes into their bank account.

When this payment feature was launched in 2014, WeChat Pay's user base grew from 30 million to 100 million users within a month.

Can you use WeChat Pay without a Chinese bank account?

In short, yes. It can increasingly be used with selected international cards - both inside and outside China. At present, this includes JCB, Visa, Mastercard, and others.

It also supports 26 different currencies, including USD, CA$, EUR, and GBP.

There are limitations and transaction fees, including maximums of:

• RMB 6,000 (approx. USD 835) for a single transaction
• RMB 50,000 (approx. USD 6,995) over the course of a month
• RMB 60,000 (approx. USD 8,350) for a year

For transactions on international cards above RMB 200 (approx. USD 27.82) there is a transaction fee of 3%. If a refund request is successful, then this transaction fee will be refunded.

Unfortunately, not all features are available for non-Chinese card accounts. One example of this is the red envelope feature.

How do I link my foreign credit card to WeChat?

To add a foreign card to the WeChat app a customer must follow these steps:

1. Ensure they have the latest edition of the app, or the international version if it is required
2. Go to their profile settings and select 'Wallet' to access payment options
3. Add a new bank card by selecting the 'Bank Card' option and fill out the required fields.

It's as easy as that!

Documents may be required when setting up the original account. These can include a passport, foreign permanent resident ID card, and mainland travel or residence permits for Taiwan, Hong Kong, and Macao residents.

Benefits of offering WeChat Pay

By offering WeChat Pay, non-Chinese businesses can attract new customers. This applies to both brick and mortar stores and online stores.

It can also open up the potential to expand into the Chinese market. And WeChat itself is a great platform to directly market to potential Chinese customers.

Integrate your business's payments with WeChat Pay via Nuvei

Whether you are an existing Nuvei customer or a potential one, we can help you integrate your business with WeChat Pay.

Our technology and integration expertise helps some of the world's leading brands to increase sales conversions, reduce operational costs, and move into new markets.

And our flexible support provides both practical solutions and peace of mind as your business grows.

Conclusion

In China, the WeChat Pay app has been around for over a decade and has already processed billions of transactions.

Outside of China, it is a relatively recent and highly innovative way of performing mobile purchases, handling money, and other services. And its usage is growing...

WeChat's mini-program payment method helps users make payments without leaving the app. This adds an extra level of convenience to Chinese consumers' lives that even regular mobile phone payments haven't yet achieved.

Many businesses, merchants, and consumers alike can all benefit from integrating with WeChat and WeChat Pay. It not only attracts Chinese users outside of China, but also prepares non-Chinese businesses to enter the Chinese market.