Smartphones are taking over China. Almost everyone in China’s major cities is using a smartphone to pay for just about everything.
Did you know?
- Chinese mobile payment volume more than doubled to $5 trillion in 2016, according to analysis data cited by Hillhouse Capital.
- The reliance on mobile payment is putting pressure on overseas tourist destinations. The number of stores accepting Alipay in Japan, a popular shopping destination, is set to double to 45,000 by the end of 2017.
- Chinese electronic payments are expected to reach 300 trillion RMB by 2021.
What does this mean for brands?
- WeChat pay is a must have feature when purchasing products and services in China.
- Promoting a QR code on offline materials instore, at exhibitions and events, is essential to drive customers to your WeChat account and store.
- Offering WeChat pay and Ali Pay in stores to inbound Chinese is critical for capturing the tourism market.
A bit more about WeChat and WeChat pay
- WeChat is currently China’s most used social app, with over 877 million active users a day!
- WeChat pay is China’s 2nd largest payment channel, accounting for 40% of the market.
- WeChat pay currently has a yearly user balance transaction limit of 200,000 RMB (roughly 30,000 USD). For power, this limit has caused some pain to WeChat pay users and small businesses.
- WeChat pay has just lifted its maximum payment limit, so you can buy large purchases such as cars directly through WeChat pay.
- You would be hard placed to find anywhere in China that doesn’t accept WeChat pay as a method of payment. This extends to paying for taxis and even street food.
- This is a great opportunity for luxury brands – just 1 click to purchase!
Thank-you to CNBC’s Morgan Brennan for the data.
Click here if you want to find out how to better use WeChat to grow your customer base!
For other China Digital Marketing masterclasses please click here.