Revenue Optimization 1: Authorization rates, fraud and some things you should know about risk management
This is available for all our customers, giving them access to 300 million Chinese shoppers around the world.
Even better, this is possible without a local entity – so with the flick of a switch you can start selling to shoppers in China.
Along with Alipay and UnionPay, WeChat Pay is rapidly becoming a keystone payment method for businesses wanting to reach shoppers both at home and abroad.
Today’s shopper in China presents a huge opportunity.
They are predominantly young, mobile-savvy and enthusiastic about international brands.
15% of the total population are expected to make a cross-border purchase by the end of 2016, amounting to $86 billion in total transactions.
By 2020 this will likely to climb to around 70%, which will have a huge impact on global ecommerce.
In terms of mobile, China leaves Europe and the US in the dust.
In major cities like Shanghai you’ll find QR codes embedded onto the tables in restaurants.
Diners can pay their bill with an app, and Chinese use their phones to pay for everything from cinema tickets to utility bills.
It is within this context that we see the rise of this payment method.
Originally a messaging app (like WhatsApp) WeChat has evolved into a social network, a communication platform, and work collaboration tool - amongst other things.
Its foray into the world of payments started as a peer-to-peer money exchange service, which really hit the big time when it became a primary method for the giving of ‘red envelopes’ during Chinese New Year, processing 8 billion red envelopes in 2016.
Since March 2014, it has also be used to pay for products and services, with irresistible ease.
The shopper can either fund WeChat by topping up with cash, or connecting to one (or several) credit or debit cards, including from local banks like China Everbright Bank and Hua Xia Bank.
This has the advantage that businesses can reach a broader segment of shoppers.
This payment method has become an integral part of the lives of 300 million people.
By processing payments, it is closing the loop on an ecosystem.
It allows Chinese shoppers to chat, browse and buy, all in one place. Which makes shopping as easy as chatting to your friends.
Our integration enables a quick and easy payment flow with minimal steps.
There are two variations:
WeChat Pay is generating a lot of interest from luxury retail and travel businesses.
Both Dior and Bulgari announced their support of WeChat Pay in August, and many of our luxury retailers, airlines and booking clients will be supporting this payment method shortly.
We see WeChat Pay following a similar path to mobile giant Alipay, which has an average transaction value of around $100 on the Adyen platform.
And we expect most businesses that support Alipay to adopt WeChat Pay as well.
We offer a full service integration to WeChat Pay. This means that, with a single contract and connection with Adyen, you have access to WeChat Pay, not to mention Alipay, Apple Pay, and any other payment methods your shoppers are using.
Also included in this integration:
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