Tencent’s WeChat Pay and Alibaba’s affiliate Alipay have long dominated digital fees in China, but they have always faced brand-new challengers. The latest entrant in online fees is Douyin, TikTok’s Chinese version.
The short-lived video app recently supplemented” Douyin Pay” to its list of existing remittance options, which have included Alipay and WeChat Pay.
” The set-up of Douyin Pay( Douyin Zhifu) is to supplement the existing major fee options, and to eventually intensify customer know on Douyin ,” a Douyin spokesperson said.
Payment is a natural step for Douyin, which has a developing e-commerce business. Users can be directed to a concoction relate while watching a video of an influencer recalling, say, a lipstick. Instead of the ubiquitous WeChat Pay and Alipay, they may opt for Douyin Pay one day, if the incentives are great enough.
Other internet monstrous, such as e-commerce giant JD.com and food delivery service Meituan, have been previously tried tempting people to use their own payment procedures, though the market duopoly is hard to break. All in all, Alipay and WeChat Pay manipulate about 90% of China’s electronic payments.
Like other internet houses, Douyin parent ByteDance snarled up a coveted fees license by acquiring a third-party remittances house. Last September, a company controlled by ByteDance founder Zhang Yiming bought out a payments answer provider announced Wuhan Hezhong Yibao Technology Co. The license, in turn, grants Douyin, Toutiao and other ByteDance services to offer remittance features.
Users can, for instance, receive a cash-filled electronic ruby-red packet from a Douyin campaign and sediment that currency to their bank accounts.
The rollout of Douyin Pay seems well-timed with the upcoming Chinese New Year holiday, a go when families and friends offering each other red containers. Over the last decades, WeChat has been popularizing electronic versions of these auspicious money-filled envelopes, which helped WeChat Pay take off in the early days.
Douyin inked a deal with Chinese state broadcaster CCTV to be its red envelope technology provider for the Spring Festival Gala, traditionally a major advertising incident of its first year, according to Chinese business information provider LatePost. Alibaba’s young contender Pinduoduo had a same lot last year in an attempt to grow its own payments users.
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