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Tencent Holdings Ltd will make its WeChat Pay app more accessible to Chinese travelers in Japan through a partnership with the popular Line Messaging application, an initiative that accelerates WeChat's overseas distribution. This cooperation, which was announced on November 27, will allow Japanese merchants with a Line Pay terminal to directly process WeChat Pay transactions without the inconvenience of currency conversions.
In a press release, Tencent said the partnership could help local small and medium-sized businesses to adopt mobile payments at a lower cost, as it will save them from buying additional QR code scanners.
"This strategic cooperation will allow WeChat Pay to further penetrate local and daily scenarios and provide Chinese tourists with more in-depth services," said Li Peiku, vice president of WeChat Pay.
According to a spokesman for WeChat Pay, the strategy is "in line with the increased demand of Chinese to travel as locals, rather than serving the Chinese only to hot spots of traditional tourism."
After announcing their move to Tokyo, Hisakuhi Nagafuku, Line Pay's chief operating officer, said, "There is virtually no reason Japanese stores will not launch Line Pay now," adding that its company will move from Local payment service status to Company # 1 for incoming payments.
WeChat Pay, which entered Japan two years ago, however, saw a six-fold increase in the number of transactions between June 2017 and 2018. WeChat Pay is currently available in Japan's major commercial areas, including airports, pharmacies and amusement parks.
The new partnership will also increase competition between WeChat Pay and Alipay, an application introduced by Alibaba Group Holding, as these two companies try to increase their market share outside of China. Alipay has recently announced a partnership with Yahoo Japan and Softbank Group Corp to offer payment services.
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