Key Takeaways:
PayPal users in the US can now scan WeChat Pay QR codes at tens of millions of merchants across China, bypassing the need to download a separate app.
Tencent's TenPay Global and PayPal World have connected their payment networks, enabling US-based PayPal users to make purchases at tens of millions of WeChat Pay merchants across China without downloading a new app. The service, announced Wednesday at the Shenzhen International Financial Expo, will roll out to additional markets in phases.
"China is home to one of the world's most sophisticated digital payment ecosystems, and for international travelers, the ability to pay seamlessly is integral to the experience of being here," Otto Williams, senior vice president of PayPal World and regional head and general manager for PayPal Middle East and Africa, said.
Tencent also introduced a 90-day fee waiver on international card processing fees for first-time users who link a foreign bank card to WeChat, capped at RMB 1,000 per day. Transaction volumes from foreign travelers using WeChat Pay with linked international cards rose nearly 80% year-on-year from January through April, according to Tencent data.
The partnership gives PayPal a foothold in China's mobile payments market, where Ant Group's Alipay and Tencent's WeChat Pay process the vast majority of everyday transactions across retail, transport and services. For Tencent, the integration expands its inbound payment infrastructure ahead of the Asia-Pacific Economic Cooperation meetings in Shenzhen this November, when thousands of international delegates will visit.
Weixin Pay has expanded its in-app payment guidance to 16 languages covering all major APEC economies, including English, Korean, Thai, Russian, Spanish and Arabic. Tencent has also set up offline service desks at airports, ports of entry, hotels and key commercial districts, complemented by 24/7 multilingual online support.
The partnership extends Tencent's "Pay with Your Home E-Wallet" model, which it pioneered in 2018 with WeChat Pay HK. More than 36 overseas wallets are already integrated through China's unified cross-border QR-code gateway, with additional wallets from APEC economies expected to come online soon, Daniel Hong, vice president of Tencent Financial Technology, said at the event.
TenPay Global has also partnered with domestic tax refund institutions to speed up departure tax refunds, starting with WeChat Pay HK users in Shenzhen. Refunds will be credited directly to users' preferred overseas e-wallets within seconds, compared with traditional methods such as cash or international credit cards.
For PayPal, the integration opens a new revenue stream from cross-border transaction fees in the world's largest mobile payments market, where it previously had limited merchant acceptance. Tencent, which trades on the Hong Kong Stock Exchange at roughly 22 times forward earnings, strengthens its competitive position against Alipay by deepening wallet interoperability — a strategy that could drive higher transaction volumes among the 80 million-plus international visitors China expects to receive annually.
This article is for informational purposes only and does not constitute investment advice.
