Alibaba, a major e-commerce service provider in China, has revealed that its platforms Taobao and Tmall will now support payments through WeChat Pay for the first time. This marks a significant change as Alibaba had previously not supported WeChat Pay for payments, instead pushing its partner platform Alipay.
However, there is no official timeline yet for when WeChat Pay will be available on the platforms. An Alibaba representative stated that the support for WeChat Pay aligns with their strategy to create an open system for partners and enhance the shopping experience for customers. WeChat currently boasts 1.3 billion global users, with the majority in China.
There are two main reasons behind Alibaba’s decision to support WeChat Pay. Firstly, WeChat Pay is highly popular among Chinese users, especially those in remote areas. To grow in this market, Alibaba needs to embrace WeChat Pay. Secondly, regulatory scrutiny in China is increasing, with both Alibaba and WeChat’s owner Tencent creating closed ecosystems like Super Apps, making it difficult for competitors to penetrate. Both platforms have recently been opening up more, allowing for greater accessibility.
Source: CNBC
TLDR: Alibaba’s Taobao and Tmall platforms in China will now support payments through WeChat Pay, reflecting a strategic shift to cater to the preferences of Chinese users and navigate regulatory challenges in the market.
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