Local Chinese media reports indicate that WeChat, the dominant social networking and payment application in China, has included the digital yuan in its payment offerings.
“In the ‘Wallet Quick Payment Management’ page of the Digital RMB (pilot version) app, there are currently 94 ‘merchant platforms’ that can be opened, and the ‘payment platform’ has added WeChat Pay,” the Paper said.
According to one Chinese report, the move aims to help increase the appeal of the digital yuan, China’s central bank digital currency (CBDC), which has under-performed in terms of adoption.
It is already possible to use the digital RMB wallet for payment through the WeChat App, and it has already supported the use of some WeChat mini-programs and other scenarios, and more scenarios are gradually being opened, the report adds.
In September 2022, a digital yuan app was launched by iOS and Android on domestic app stores, amid reports that it would be integrated with the leading apps in the country, WeChat and Alipay.
Both companies expressed support for the digital yuan in 2021.
Alipay, a third-party mobile and online payment platform under the Alibaba Group, was reportedly integrated with the digital Yuan wallet in December 2022, and now WeChat has become the second major payment platform to do so. As the two mobile payment giants in China, WeChat Pay and Alipay are expected to provide powerful support for the application and promotion of e-CNY through its express payment system.
The inclusion of the digital Yuan wallet in WeChat allows users to make payments with the digital Yuan on selected WeChat mini-programs and other platforms such as paying bills or ordering food from McDonald’s.
WeChat currently boasts over 1 billion monthly active users, according to reports.
The Chinese paper also reports that the addition of the digital Yuan could benefit the ecosystem of apps which do not have to implement separate integrations hence boosting efficiency when it comes to expansion.
“Accessing digital Renminbi through WeChat payment will improve efficiency and cost for small program merchants with an order of magnitude of millions.”
Currently, the digital Yuan (also known as e-CNY) is undergoing pilot testing in at least 26 cities and provinces across China. The ‘Wallet Quick Payment Management’ page of the digital Yuan pilot wallet states that there are 94 merchant platforms available for use, including WeChat.
According to the government, the digital Yuan wallet app is not meant to be competition for WeChat and Alipay apps since it is created to be a substitute to physical notes and coins in circulation.
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