Tencent Holdings Ltd. has registered in Malaysia for a license to provide local transaction services through its WeChat Pay. It would be a first, if succeeded, for the platform further than Hong Kong and mainland China, the director of global operation of WeChat Pay claimed to the media in a statement.
If accepted, consumers in Malaysia will be allowed to connect their accounts of local bank to WeChat Pay and shell out for services and goods in ringgit. “Malaysia has a huge community of Chinese users,” Grace Yin claimed to the media at a Hong Kong tech conference, clarifying choice of test bed by Tencent.
Alipay, the affiliate of Alibaba Group Holding Ltd, and WeChat Pay are making China cashless by allowing money transfers or payments at the expediency of a code scan. The duo are also developing globally in racing bike with outbound tourism, getting more ventures to agree to their services that enables users in China to make transaction utilizing bank accounts without difficulties posed by exchange of currency.
Licenses for such cross-border transaction vary from those needed for domestic transaction services. Hong Kong is presently the only place outside mainland China where Alipay and WeChat Pay provide transaction services performed completely in the local currency. Alipay rolled out an individual app in May for the Hong Kong market. It is the company’s first non-yuan transaction services app.
Tencent is biggest social media and gaming company of China by income. It claimed that there are more than 600 Million monthly active consumers for WeChat Pay and QQ Wallet. Alipay claimed in a statement to the media that it has more than 450 Million active consumers. Alipay and WeChat Pay rule the mobile banking market of China, which totaled to 18.8 Trillion Yuan ($2.76 Trillion) value of payments in the initial 3 Months of 2017, as per the industry analysts.
This week, Stripe, the Silicon Valley startup, claimed to the media in a statement that it had combined with the pair to permit merchants present all over the world using Stripe to take payments from Chinese users through Alipay and WeChat Pay.