China is reportedly planning to bring a new mobile payment rule. According to a report by Nikkei Asia, the country’s regulators have asked Tencent Holdings to lower the mobile payment market share of its popular WeChat app. The report cited one of the sources to claim that the directive is aimed more at the market share for in-person payments made by scanning QR codes than for online shopping. Earlier this year, India also held a meeting with smaller UPI players to restrict the dominance of apps like Google Pay, PhonePe and Paytm.
However, the report didn’t specify if Chinese regulators gave Tencent any precise numerical target to meet. One of the people familiar with the situation also said: “WeChat is not targeting user expansion, and it is very cautious about the potential risks of growing too big,” the report noted.
India may be planning similar rules for UPI apps
Earlier this year, the National Payments Corporation of India (NPCI), also reportedly discussed ways to empower new players in the UPI ecosystem. In a meeting, the government-owned body that governs the Unified Payments Interface (UPI) has reportedly nudged several new third-party payment apps on UPI to invest and incentivise consumers.
However, NPCI didn’t invite major players like Google Pay, PhonePe, and Paytm as they control over 90% of both UPI transaction volume and value. With this move, NPCI may be planning to gather insights from stakeholders on how to create a more level playing field for smaller third-party application providers (TPAPs).
China’s payment market: Details
Despite being the world’s largest cashless society and having around 185 non-bank payment institutions, China’s mobile payment market is dominated by two major players.
As per the report, estimates of market share differ due to varying methods of transaction calculation. However, a source familiar with the matter revealed that WeChat Pay holds a market share advantage over Alipay by a ratio of nearly 3:2.
Additionally, in terms of transaction volume, WeChat Pay leads even more significantly, as it handles a higher number of small-value transactions.
However, the report didn’t specify if Chinese regulators gave Tencent any precise numerical target to meet. One of the people familiar with the situation also said: “WeChat is not targeting user expansion, and it is very cautious about the potential risks of growing too big,” the report noted.
India may be planning similar rules for UPI apps
Earlier this year, the National Payments Corporation of India (NPCI), also reportedly discussed ways to empower new players in the UPI ecosystem. In a meeting, the government-owned body that governs the Unified Payments Interface (UPI) has reportedly nudged several new third-party payment apps on UPI to invest and incentivise consumers.
However, NPCI didn’t invite major players like Google Pay, PhonePe, and Paytm as they control over 90% of both UPI transaction volume and value. With this move, NPCI may be planning to gather insights from stakeholders on how to create a more level playing field for smaller third-party application providers (TPAPs).
China’s payment market: Details
Despite being the world’s largest cashless society and having around 185 non-bank payment institutions, China’s mobile payment market is dominated by two major players.
As per the report, estimates of market share differ due to varying methods of transaction calculation. However, a source familiar with the matter revealed that WeChat Pay holds a market share advantage over Alipay by a ratio of nearly 3:2.
Additionally, in terms of transaction volume, WeChat Pay leads even more significantly, as it handles a higher number of small-value transactions.
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