China is the world’s strongest travel market. About 12 million Chinese tourists visited Europe in 2017. A good half of them listed local shopping as a reason for their trip. Chinese tourists are also very well-funded: They spend on average over € 3,000.00 per person during their trip to Europe. To exploit this opportunity as a merchant, you need to do one thing: offer them their preferred payment options – Alipay and WeChat Pay.
Reasons to Offer Chinese Payment Methods in European Stores & Online Shops
Over last two decades China has become one of the most powerful outbound markets. According to Telegraph magazine, overseas trips of China’s residents will increase from last year’s figure of 149.7m to more than 400m by 2030, with Europe being the second most popular destination outside Asia. When Chinese tourists come to Europe, they’re determined to shop in every major capital. Luxury goods such as designer clothes, jewelry, watches and high-end cosmetics are highest on their wish lists. A Chinese tourist has spent an average of € 3,240.00 last year and this number will only grow in the future. If you are a merchant, you should definitely consider taking a piece of this cake.
Benefits for Merchants
- Access to over a billion of Alipay and WeChat Pay users
- Sales increase
- Quick & Easy Integration
- Low costs
- Additional marketing channel
China Payment Explained: WeChat Pay & Alipay Apps
Unlike the most other countries where users have switched from cash to credit cards and are now switching to mobile payments, China seems to have skipped credit cards and jumped to using mobile phone. Because it is so easy, fast and straightforward, paying with your phone in China has simply become a daily gesture. It is no surprise then that around 85% of all payments are made via mobile payment modes, with WeChat Pay and Alipay being the most popular payment methods in China.
What Is WeChat Pay & Alipay?
WeChat Pay is the most used payment method in China. It is completely integrated inside the Chinese most popular social and messaging app WeChat. Around 900 million users pay with it each month,
and this number is growing steadily.
Alipay has the second biggest market share in China with 700 million active monthly users. It also comes in form of a mobile app and was founded by Alibaba Group.
How does WeChat Pay & Alipay work?
Paying via WeChat Pay or Alipay is done by simply scanning a QR code. Here is how it works:
- The user opens the WeChat Pay or Alipay app.
- A QR code is generated.
- The retailer scans the QR code to start the payment process.
- The user confirms the payment.
- The payment process is complete.
How Can I offer WeChat Pay & Alipay to My Customers?
Wirecard’s China Payment Gateway enables merchants to easily integrate these popular payment options directly in their physical stores (at Point-Of-Sale) or in online shops. There is no need to open an account in China, you just need to have a valid contract with Wirecard (or conlude one).
In order to process payments from Chinese customers Wirecard has developed a merchant app for smartphones and tablets. Alternatively, you can integrate the payment methods into your register/checkout system via an SDK or a hardware connector (comes with a handheld scanner). By using any of these 3 methods you can scan the QR code in the customer’s app and the payment process starts automatically. As soon as the processing is finished, receipt and a document for claiming the VAT refund are printed out.
If you are already using Wirecard’s payment services and want to offer WeChat Pay and Alipay in your online shop, you have to select them as additional payment options. Your customers can then choose them during the checkout process, same as any other payment method. They use their app to scan the automatically generated code and confirm the payment.
Successful Integration Example: Tirol Werbung
One of the main conditions for a successful purchase is accepting a customer’s preferred payment option. To meet this requirement, Tirol Werbung GmbH, the state tourism organization in Tyrol set up last year a large “China Pay” initiative so that local businesses could benefit from growing number of Chinese tourists. 150 Tyrolean companies have been initially equipped with Wirecard’s mobile payment solution and thus become more attractive and accessible to their visitors from China. Integration was easy – all the merchant needed was an internet connection and a smartphone or tablet to process payments using the corresponding app.
No matter how big or successful, most business owners are constantly striving to grow and expand their potential customer base. An easy way to do that is to target foreign tourists by enabling them to use their preferred payment method when shopping abroad. A particularly interesting target group are Chinese tourists whose number is continuously growing. The main factor that influences their decision on where to spend their money is convenience, i.e., availability of their preferred payment methods. Therefore, merchants who offer WeChat Pay and Alipay have a significant advantage and automatically gain access to over 15 million of Chinese tourists.
If you would also like to be able to accept most popular Chinese payment methods and benefit from the Chinese shopping superpower, then you need a strong and reliable global partner. With China Payment Gateway from Wirecard you can do this in no time.
In case you are interested in China Payment Package, our team will be happy to advise and inform you further: CONTACT FORM