Posted inNews

WeChat integrates digital yuan into its payment platform

March 7, 2023No Comments


WeChat, China's leading social networking and payments app, has added the country's central bank digital currency (CBDC) to its payment services, according to reports in the local media. The move is intended to help broaden the appeal of the digital yuan.

WeChat now supports the yuan digital wallet's fast payment feature, making it the second payment platform to do so after Alipay.

This feature allows users to use the digital yuan for payments on certain WeChat mini-programs and other platforms. The pilot version of the "Fast Wallet Payments Management" page of the Digital RMB app currently lists 94 business platforms that can be accessed, and now includes WeChat. WeChat Pay now enables digital yuan payments in certain apps, such as ordering food from McDonald's and paying bills.

Users need to authorize the yuan digital wallet operator to sync their linked mobile phone number to WeChat for successful activation of WeChat Pay Wallet's fast payment feature. Once activated, payments to merchants that support the digital yuan can be made through the WeChat app. Additional integrations are expected to become available gradually.

โ€œChinese consumers are so focused on WeChat Pay and Alipay that convincing them to switch to a new mobile payment app is unrealistic,โ€ said Linghao Bao, an analyst at Trivium China, a strategic advisory firm. "Therefore, it makes sense for the central bank to partner with WeChat Pay and Alipay rather than go it alone."

Related: China's digital yuan gets smart contract functionality along with new use cases

The digital yuan, also known as e-CNY, is being tested in at least 26 Chinese provinces and cities. The token saw a surge in transaction volumes on Chinese e-commerce platforms during the 2023 Lunar New Year shopping season, helped by e-CNY handouts from the authorities.

In December 2022, Alipay Announced its access to the digital yuan acceptance network, allowing users to spend digital yuan consumption on platforms served by Alipay, including Taobao, Shanghai Bus, Ele.me, Youbao, Tmall Supermarket, Hema.