As China’s tourism industry gradually recovers, more and more Chinese travellers are embarking on trips abroad. According to the China Tourism Research Institute, the number of Chinese tourists travelling abroad will reach 130 million in 2024, a figure close to the 155 million Chinese outbound trips in 2019 before the epidemic. Therefore, by understanding and integrating WeChat Pay and Alipay—China’s leading payment methods—European merchants can significantly enhance the service and shopping experience they offer Chinese consumers.
A brief introduction to WeChat Pay and Alipay
WeChat Pay, launched by China’s internet giant Tencent, is a mobile payment solution embedded within the WeChat app. As China’s most popular social media platform, WeChat boasts over 1 billion monthly active users. The platform offers more than just social features, such as Moments (similar to Facebook Timeline) and Official Accounts (similar to Facebook’s public page); it also hosts millions of mini-programs (“lightweight” sub-apps within the WeChat ecosystem), allowing users to access them directly without needing to download or install anything. This streamlined design offers a convenient, flexible experience that spans various fields. WeChat Pay integrates seamlessly with these features, allowing users to quickly conduct transactions—from peer-to-peer transfers and online shopping to in-store purchases.
Alipay, on the other hand, is a payment platform launched by Ant Group in 2004. The early version of Alipay operated as a third-party payment service for Alibaba Group’s e-commerce platform, Taobao, providing escrow services that ensured safe online transactions. Alipay has evolved significantly; today, it has become one of the leading mobile payment platforms in the world, boasting over 890 million monthly active users. Alipay supports various features beyond online and offline payments, offering users a diverse range of financial services, investment products, and credit options.
Together with other popular e-wallets, Alipay has served as the leading wallet in Alipay+, a comprehensive digital platform launched in 2020 designed to facilitate seamless cross-border payments.
Key differences between Alipay and WeChat Pay
Platform features
WeChat Pay is built within WeChat, a comprehensive app that combines messaging, social networking, and mini-programs. It plays a crucial role within this ecosystem, enabling users to seamlessly transition from socialising on WeChat to shopping within the app. WeChat Pay can be seen as a super app that combines functionalities similar to WhatsApp, Facebook, TikTok, Uber, and PayPal.
Alipay, on the other hand, is more focused on e-commerce and financial services. In addition to its convenient payment features, Alipay provides users with a range of financial services, including insurance, investment products, and no-deposit rentals, making it resemble a digital “bank.”
User scenarios
WeChat Pay is predominantly used for everyday small transactions in China, such as shopping and dining. It functions much like cash in a wallet—convenient and efficient.
Alipay’s usage scenarios are more inclined towards large purchases and online transactions, especially on Alibaba’s e-commerce platforms like Taobao and Tmall, where its use is particularly prominent. Its functionalities align closely with those of a comprehensive digital banking application.
It is worth noting that the user scenarios for WeChat and Alipay are quite similar overseas, as both are preferred mobile payment methods for Chinese consumers when travelling abroad.
Marketing Strategies
WeChat Pay leverages its robust social features to promote itself virally through user sharing, digital red envelopes (traditional gifts typically filled with cash), and coupons, enhancing the influence of brands and services.
Alipay, on the other hand, attracts users through user points, cashback, and discounts, particularly on e-commerce platforms, where it attracts consumers through powerful advertisement placement.
Global Strategies
As Chinese consumers increasingly engage with global markets, Alipay and WeChat Pay are expanding their international reach, but their strategies differ.
WeChat Pay leverages its vast user base from the social platform, focusing more on social interactions and integrated services. Its global strategy primarily targets Chinese tourists and expatriates who prefer using WeChat to make payments abroad. It also focuses on its vast user base within China and other Asian countries, capitalising on the social platform’s extensive reach.
On the other hand, Alipay adopts a more expansive strategy to enhance its global footprint. A prime example is Alipay+, which actively collaborates with international merchants and financial institutions to broaden its reach and acceptance in global markets. Currently, Alipay+ boasts a network of approximately 30 international e-wallets, including Alipay itself. This platform enables merchants to accept various payment methods through a single QR code, streamlining the payment process and significantly widening their consumer base.
Takeaway for European merchants
For European merchants seeking to attract Chinese and Asian consumers, integrating WeChat Pay and Alipay is an essential strategy. This integration not only enhances the purchasing experience but also enables merchants to connect directly with Chinese consumers and implement targeted marketing strategies through the robust features of these payment platforms.
WeChat Pay: You can create Official Accounts or mini-programs within WeChat tailored to your needs. These allow the easy distribution of coupons and incentivise sharing among consumers, thereby boosting brand visibility. Furthermore, mini-programs facilitate direct ordering and payment, simplifying the shopping experience for users.
Alipay: You can utilise Alipay to set up and showcase your Storefront Page (similar to the merchant page on Google), offering discounts to drive online traffic to your stores. Additionally, by offering promotional discounts in the Alipay app, you will improve the visibility ranking on the geo-based City Page, resulting in greater exposure to potential customers.
As one of the pioneering companies in Europe that serves as an overseas payment provider for both WeChat and Alipay, we are committed to helping European merchants seamlessly integrate Chinese payment methods. We focus on delivering high-quality services and tailored solutions to support your business growth. If you have any inquiries about WeChat Pay or Alipay, please don’t hesitate to contact us!
*PayXpert provides the product and services in all Europe and UK. The acquiring services are managed by PayXpert Spain for Europe and PayXpert Ltd for UK. More details about the products and services offered by PayXpert are accessible via their official website in Spain (www.payxpert.es)
