![]() Other players include JD.com's (9618.HK) JD Pay, Baidu (BIDU.O) Wallet and Meituan (3690.HK) Pay. It provides a glimpse of what TikTok could eventually become, as Douyin started selling merchandise in 2017 and now operates a growing e-commerce operation where hundreds of millions of users shop on a daily basis.īyteDance's expansion comes as China's financial regulators are tightening oversight over financial technology firms, particularly companies such as Ant Group.Ĭhina's third-party payment sector is dominated by Alipay and WeChat Pay, with the former taking 55.39% of the total market in the second quarter of last year, according to market researcher Analysys. The company, which denies the allegation, has been in talks for months with Walmart Inc (WMT.N) and Oracle Corp (ORCL.N) to shift such assets into a new entity.ĭouyin is the main revenue generator for ByteDance. Hezhong Yibao obtained a third-party payment license from the central bank in 2014.īyteDance has been ordered by the outgoing Trump administration to divest TikTok's U.S. Users of Douyin, which accumulated 600 million daily active users, previously could use Ant Group's (688688.SS) Alipay and Tencent Holdings' (0700.HK) WeChat Pay, the country's two ubiquitous third-party mobile payment channels, to buy virtual gifts for livestreamers or items from shops on the platform.īyteDance founder and CEO Zhang Yiming built up the company's payment capability in China by acquiring Wuhan Hezhong Yibao Technology Co last year. "The set-up of Douyin Pay is to supplement the existing major payment options, and to ultimately enhance user experience on Douyin," Douyin said in a statement to Reuters on Tuesday. ![]() It remains to be seen whether Douyin Pay will become a threat to Alipay or Wechat Pay, but there is no doubt that the exclusive partnership is a major opportunity for Bytedance, and something that the two tech giants Alibaba and Tencent follow closely.BEIJING, Jan 19 (Reuters) - Beijing-based ByteDance recently launched its third-party payment service for the Chinese version of its hit short video app TikTok, "Douyin Pay", as it presses to expand into the e-commerce business in China. The move is a scoop for Douyin Pay and can potentially attract hundreds of millions of consumers onto Douyin Pay´s platform. The hosts of the Spring Festival Galla will reveal a code which the viewers will have to use on their phones to get the red envelopes. ![]() It is now commonplace to use mobile platforms to send digital ’red envelopes’. It is also what brands typically hand out as coupons or vouchers. The red envelope is a traditional Chinese monetary gift signaling future prosperity that parents and grandparents usually give to their children. ![]() Other players include JD.com's JD Pay, Baidu Wallet, and Meituan Pay. The Gala is broadcasted on the eve of the Chinese New Year, which last year had over 1.2 billion viewers, making it the world’s most-watched TV broadcast.ĭuring the show, Douyin will have the exclusive right to sponsor and issue 1.2 billion yuan (185 million USD) in the form of ’red envelopes’ directly to the viewers. China's third-party payment sector is dominated by Alipay and WeChat Pay, with the former taking 55.39 percent of the total market in the second quarter of last year, according to market researcher Analysys. According to Reuters, Douyin has in an aggressive move sued Tencent Holdings (owner of Wechat) for alleged monopolistic behavior, and asked for 13.94 million USD, so the battle is on.īytedance’s CEO, Zhang Nan, has announced that Douyin will be an exclusive partner of the Spring Festival Gala 2021 TV show next week. It may therefore become increasingly difficult for the existing players such as AliPay, Wechat Pay and now Douyin Pay to compete in the arena of payments.Ĭompetition is fierce, and currently Tencent´s Wechat is preventing users from sharing content from Douyin. This happens alongside tighter regulations for the tech giants, which was exemplified by Ant Financials IPO being taken of the table following Jack Ma’s speech about slow progress and innovation among Chinese regulators. When launching an official digital currency, the tech giants will no longer have a duopoly on digital payment solutions and the power will flow back in the direction of the state. With the introduction of an official, digital currency China is taking a further step on its digital transformation journey. But China is not only ahead when it comes to digital payment solutions. ![]()
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