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Online Payments

Tenpay, Wechat partner Limonetik for improved cross-border payments for Chinese consumers

Thursday 8 October 2015 | 12:32 PM CET

Tenpay and Wechat payment, two payment solution brands of Tencent in China, have partnered Limonetik, a European provider of international payment methods and marketplace solutions, for improved cross-border payments for Chinese consumers.

Tenpay and Wechat payment are online payment solutions in China, enjoying soaring market share in the enormous Chinese market. According to iResearch, Tenpay accounted for a 20% market share of third-party payment transactions, by value, in China in 2014. Remarkably, with an expanding share in the mobile payment segment, the market share of Tenpay has reached over 10% in 2014.

Since mobile ecommerce is estimated to rise by 53% by 2016, there is room for further significant growth for Tenpay. For Wechat payment, an in-APP payment solution, the most heated mobile platform in China with multiple functionality and in excess of 600 million monthly active users, instead of just chatting, Tencent wants users to use its in-built payment methods, in both online and offline merchants, domestic and overseas.

It enables users to make in-APP purchases, pay at retail locations in-store, via scanning QR code and purely online purchases. With such user base from the social media platform of Tencent, Wechat payment is promising to expand not only in domestic market, but will also thrive in cross-border consumption sectors as well.

A partnership dedicated to provide cross-border payment service with high efficiency, Limonetik provides a one-stop shopping payment solution, connecting merchants with Tenpay and Wechat Payment, which can further deploy the payment solutions to European merchants in different sectors, including physical goods, ticketing, digital contents, etc.

According to the annual cross-border consumption index report released by Visa, China’s cross-border consumption would enter a swift development age, which will double the growth targets by 2019. Additionally, France and UK are among the top three countries of a single transaction amount. However, according to data released by payment service providers, only 1% of shoppers pay with International credit cards. Therefore, as heavy users of e-wallet solutions, Chinese consumers will mainly count on alternative payment methods to make cross-border transactions and pay overseas tourism fees.

Besides tangible products and digital contents, ticketing in European resorts is enthralling for Chinese consumers. According to the tourism institution in China, nearly 4 million Chinese travel to Europe for vacations each year. Consequently, building up more efficient cross-border payment experiences in different sectors for users will be a primary mission for Limonetik partnering with Tenpay and Wechat payment.