The news: Tencent’s fintech arm, Tencent Financial Technology, launched Tenpay Global to house all of its cross-border payment products, per a press release.
Tenpay Global will also now let Weixin users (WeChat users in mainland China) receive remittances from Tencent’s global money transfer partners—including Remitly and Wise—directly to their wallets. Previously, users could only receive remittances to cards linked to Weixin.
Why it’s worth watching: Tenpay Global highlights two key payments trends.
Chinese remittance inflow growth.
Mobile wallet popularity across China.
The bigger picture: As regulators tighten their grip on Tencent and rival Ant Group, these players are building stronger ties with global payment providers to bolster business.
Tencent is tapping demand from global money transfer players that want to enter China’s remittance market. Feeding on this demand helps Tencent better serve its local client base by giving them access to various global remittance services. And tie-ups with remittance providers can boost its cross-border payments business and increase revenues.
Ant Group is taking a slightly different approach to its global business presence by building out Alipay+, the merchant solutions suite it launched last year. Alipay+ lets merchants accept several popular mobile wallets with a single integration—opening a new revenue stream for Ant Group and helping diversify its business.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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