Alibaba Group Holding’s plan to finally accept Tencent Holding’s WeChat Pay for purchases on its online marketplaces Taobao and Tmall is expected to help the e-commerce giant attract older consumers, as well as shoppers in lower-tier cities, according to merchants and analysts.
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Following Alibaba’s announcement to incorporate WeChat Pay, known locally as Weixin Pay, as an additional payment method to its domestic shopping platforms, e-commerce unit Taobao and Tmall Group said the payment option will gradually be made available for all merchants from next Thursday.
Chinese merchants have expressed excitement about the latest partnership between the country’s largest online marketplaces and its second-largest mobile payment service. Many hope that the move could expand their consumer base in a highly-competitive market.
Lauren Huang, who has been running a store on Taobao since 2018, called the deal “one of the biggest good news this year” for merchants. “A large percentage of middle-aged and elderly users prefer using WeChat Pay, so its addition will lure more users here from Pinduoduo,” she said, referring to PDD Holdings’ rival e-commerce app.