PayPal’s entry into China to impact Alipay and WeChat payment?

Alipay and PayPal

Now Chinese consumers are accustomed to using tools such as Alipay and WeChat Pay when they settle online and offline shopping, and few people use cash. According to Internet data, with the vigorous development of cross-border e-commerce and the recovery of C-end consumption, the size of the third-party cross-border payment market will exceed one trillion yuan in the future. With the rapid development of China’s Internet finance industry, China has formed the world’s leading mobile payment system and the world’s largest mobile payment market . It is estimated that the scale of China’s third-party cross-border payment market will reach 1,295.342 billion yuan in 2022.

In May of this year, PayPal changed its name to PayPal Payment (Beijing) Co., Ltd., which acquired equity in China, with the intention of further entering the third-party payment market in my country. Will PayPal’s entry into China have a huge impact on Alipay and WeChat? Of course, this is a great convenience for overseas companies that want to carry out cross-border business in China. However, Domatters suggested that overseas companies that want to enter the Chinese market to do business should use Alipay and WeChat Pay in China in addition to Paypal. Why do you say that?

Why do overseas companies choose Alipay and WeChat Pay to enter the Chinese market?

1. At the macro level, the country’s strong institutional norms in my country’s payment market.
2. Alipay and WeChat account for more than 93% of transactions in China’s payment market, making them two giants in China’s third-party payment industry. Both of them have basically covered all the online and offline scenarios consumed by Chinese residents, and the user stickiness is extremely strong. And it has formed a close relationship with China’s shopping software settlement and financial management services. It is really difficult for PayPal to break these connections.
3. The main stable online payment scenarios such as JD.com, Taobao Tmall, and Vipshop in China, as well as those that gradually penetrate into offline scenarios, are all using mobile payments such as Alipay and WeChat Pay.
4. In terms of service rates, PayPal does not have an advantage. PayPal’s handling fees generally range from 1% to 4%. The handling fee for Alipay and WeChat payment is generally about 5/1,000, and there are many payment scenarios that are free of handling fees. In comparison, the difference is huge.
5. Alipay has more than 1.2 billion global users and is still increasing, and the number of software installations exceeds 3.4 billion. Therefore, although PayPal has a strong advantage in cross-border payment, Paypal has 377 million overseas individual users, more than 20 million merchants, and has a very rich merchant network and individual customer business resources. However, the advantages of Alipay and WeChat in the domestic payment market are difficult to shake.
6. National preparation, high security: Alipay has national security supervision and is a safe payment tool for online transactions. Through the following advanced 128-bit SSL encryption technology (refer to the common practice of domestic bank websites), you can ensure that you are on the Alipay page Any information entered can be safely transferred to Alipay without worrying about someone stealing your sensitive information through the network.
7. Use Alipay for transactions in China, saving time, money and convenience: Alipay can save the transfer fees of different places/interbanks, save time when the account arrives, and is safer and more convenient than direct transfer, and supports major domestic and foreign bank cards.
8. The payment habits of businesses and consumers cannot be changed quickly in a day or two.

Which countries does Alipay support?

Ali pay can be used normally in foreign countries, and the real-time exchange rate will be provided according to the user level. And whether there is a currency conversion fee (this fee is charged for changing money at the bank), how much to pay, and the three preferential conditions of member preferential exchange rate. At present, Ali pay can be used in more than 54 countries and regions around the world, can be used in 49 countries and regions around the world, and supports 16 currencies, and UnionPay has covered 170 countries and regions around the world.

It has access to hundreds of thousands of overseas merchant stores, such as food, drink and entertainment, and transportation, and provides real-time tax refund services at more than 80 international airports. At the same time, Ali pay also has various discounts for overseas consumption.

How to download Alipay overseas version?

Overseas Chinese and tourists can download the international Alipay app mini program Tour Pass, register with a foreign phone number, and transfer their international debit or credit card to the prepaid card provided by Bank of Shanghai for use. Even if you hold a foreign passport, you can still use valid documents for real-name authentication, and then bind a foreign bank card for payment. _This provides great convenience for all people traveling to China or enterprises entering the Chinese market in terms of payment convenience. Before this, you may have heard a lot of jokes that foreign friends without Ali pay and WeChat are in trouble when paying in China.

The domestic version of Ali pay and the overseas version of Ali pay use different software and rules, which means that your habits may not be taken abroad, so you can have these two Alipay accounts at the same time.

Alipay overseas registration steps:

The overseas version of Alipay registration is quite simple. Domatters summarizes the following process:

Download the overseas version of Alipay Mini Program Tour Pass

Open Alipay – pay – wallet – bank card – add a bank card, enter the bank card number, name, ID number and mobile phone number used to open the bank card overseas to bind – complete!

Of course, you can also contact domatters, we will not only help you register Alipay, We Chat or pay on your behalf. If you need help, domatters can also provide you with customized solutions and one-stop services for e-commerce platform selection, online marketing solutions, etc., to help you enter the Chinese market smoothly. We have the most professional knowledge and the most thoughtful service.