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Wechat pay in China is interesting. It costs nothing to add money to your balance from your bank, or to pay someone from your balance. It only costs the end mer
by ralferoo 7mo ago
Wechat pay in China is interesting. It costs nothing to add money to your balance from your bank, or to pay someone from your balance. It only costs the end merchant who wants to withdraw it from their balance back into their bank. If they can keep it in Wechat pay and spend it on other things (which is very easy as it and Alipay are the primary payment methods for everything), then there's no charge.
I guess Tencent are making their profit from the interest they earn on the money that was transferred into them that just stays in people's Wechat wallets in effectively a parallel currency.
- mihaelm 7mo agoAnd no doubt they’ll find a way to spend it in the app considering you can manage almost all aspects of your life within it. Revolut works similarly. You don’t pay any fees on transfers to other Revolut accounts, but you do for other bank accounts.
- johneth 7mo ago> Revolut works similarly. You don’t pay any fees on transfers to other Revolut accounts, but you do for other bank accounts. Does it? I'd be surprised if it does in the UK at least, as all banks do free transfers to every other bank in the UK via Faster Payments. I thought it was the same in the EU?
- ralferoo 7mo agoAgreed. In the UK, I've never been charged a fee to send money within the UK on Revolut.
- mitthrowaway2 7mo agoWell, that definitely creates a powerful pull from customers to make vendors accept Wechatpay for transactions.