Page 21 - bne_Magazine_July_2018

bne July 2018 Companies & Markets I 21
bne:FinTech
China's WeChat launches its mobile payment service
in Russia
Adrien Henni in Moscow
WeChat, owned by China's internet giant Tencent, has launched its mobile payment service WeChat Pay in Russia.
WeChat, a Chinese messaging app, is used by 980mn people in China. The launch of its payment app in Russia is aimed at Chinese consumers, the only ones who currently use the service. Russian Amber, a chain of stores in St. Petersburg, is the first chain to accept WeChat Pay thanks to its popularity with Chinese tourists, BMB reports.
Chinese tourism to Russia has taken off in a big way as Chinese consumers find Russia cheap and visit Moscow in particular on shopping trips. Irkutsk is another favourite destination, which serves the northwest territories of China.
In Moscow the legendary Central Universal Store (TsUM), a large mall for expensive brand-name goods and the little sister to the more famous GUM department store a few hundred meters away on Red Square, is currently working out how to incorporate WeChat Pay. Both GUM and TsUM already accept Alipay, the payment service of Alibaba, and both are shopping Meccas for Chinese tourists.
The number of Chinese consumers visiting TsUM has
Number of Chinese people in Russia
Number of Chinese people coming to Russia (millions of people)
Number of Chinese tourists coming to Russia (millions of people)
reportedly grown 70% in the last year. This growth has been helped by moves to accept payments from China's UnionPay and set up WeChat Pay as well as Alipay systems, hire consultants and offer competitive prices.
Russian state-owned VTB Bank and vodka company Russian Standard are also looking into WeChat Pay. Russia is trying to
“Chinese tourism to Russia has taken off in a big way as Chinese consumers find Russia cheap”
build up a domestic competitor to WeChat Pay by partnering with Alibaba's Alipay, but little progress has yet been made.
“The introduction of WeChat Pay is also proof of the Russian private sector's struggle with external partners in China.
Alipay has thus far been a bust, though there may be a Russian app soon enough. Just wait for the absurd legal backflips that will be used to try and force Russians to use it,” BMB said in
a note.
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