WeChat Pay
WeChat Pay is a digital wallet and payment service that provides a low-cost funding solution for online trading. The company’s high-tech infrastructure facilitates transactions between traders, locals and tourists. Our WeChat Pay review explores how the platform can be used as a payment method at trading brokers, covering transfer speeds and fees, plus the pros and cons.
How WeChat Works
Before we understand how to create, open or use a WeChat Pay account, let’s look at the firm’s history.
WeChat was released in 2013 and has seen exponential growth. In 2016, it was reported there were 300 million users. In 2022, there were 1.2 billion users with 78% of 18–64-year-olds in China using the service. If you compare the 1.2 billion WeChat Pay active accounts to PayPal’s 426 million users, the latter falls behind. However, vs Alipay, the company’s chief regional competitor, the number of users is similar at around 1.3 billion.
WeChat was developed as a multipurpose platform where any customer with a Chinese bank account could carry out all of their online activities in one mobile app, from shopping to gaming and chatting. On the downside, if you live in a location outside of China or do not hold a Chinese bank account, signing up with WeChat Pay is difficult. And while there are blogs on how to do this online, it has limited the company’s popularity globally.
The WeChat app is available to download from the respective Apple and Android stores. Payments can be made either in the app or by scanning a QR code. Importantly, swing traders can connect their WeChat Pay application to supporting brokers to make fast payments to trading accounts.
Transaction Times
WeChat Pay processing times are immediate. In fact, if transfers between wallets are not accepted within 24 hours, the payment will be cancelled. This makes it a good option for traders looking to quickly deposit funds and open positions. Also, the mobile-based nature of the platform makes it a convenient option for investors that predominantly trade from tablet devices.
Deposits, withdrawals and payments can all be made using a moderate WiFi signal or 3G and upwards.
Pricing Review
Payment fees are low. It costs 0.1% to use the service and there is no transaction fee. This is because the wallet is linked directly to bank cards and accounts. With that said, some online brokers do charge for integrating their payment services to WeChat Pay. But importantly, charges are low and usually free at the deposit stage.
Overall, the transfer option is one of the cheapest deposit and withdrawal solutions, rivalling top e-wallets like PayPal. The 0.1% service is fee is also considerably lower than AliPay’s 0.55%.
Security
WeChat Pay uses ‘real-name verification’ to mitigate the risk of fraud and money laundering. This can be set up by providing one of two forms of identification – a Chinese ID or a Chinese bank card. Once identity documents have been accepted, users should have access to the digital wallet to receive and send money. Note, without ID approval from WeChat Pay, official account features are restricted.
Additional security measures include transaction insurance, high-tech encryptions, plus payment limits and tracking. Importantly, the online payment service is used by billions of customers and businesses with limited reports of security breaches. A dedicated customer service team is also on-hand if you need to raise a security concern or if features are not working.
Pros of WeChat Pay for Traders
Advantages of trading with WeChat Pay include:
- Straightforward Funding – The digital wallet connects directly to a bank account or card meaning payments to brokers are fast and secure
- Multi-Purpose App – The mobile app offers more than just a payment gateway and wallet. Customers can also socialise, download games and use the video conferencing feature
- Low Fees – The only notable fee is the 0.1% service charge. This is a serious benefit over rivals like Alipay. Low-cost payment methods are also key for traders looking to improve margins
- Reputable Business – The brand has been adopted by over a billion users, including businesses, in less than a decade. The brand’s reliability and proven track record should help put new users at ease
Cons of WeChat for Traders
Our review also found some drawbacks to trading with WeChat Pay:
- Restricted Access – Without a Chinese address or bank account/card, users may find it difficult to create an account. Online guides and tutorials also aren’t easy to follow
- Extensive Sign-up Process – The company’s onboarding process is thorough, requiring identity documents to be submitted. The verification process can often take several days to complete
- Limited Currencies – Although it is possible for users outside of China to hold a WeChat account, all funds must be transferred in Chinese Yuan (CHY). This means traders holding capital in other currencies may have to pay foreign exchange rates
How to Make WeChat Pay Deposits & Withdrawals
Once your WeChat Pay account has been verified, making a deposit or withdrawal to your trading account is straightforward.
In the mobile app, go to ‘WeChat Wallet’. Here, users can add a debit card (e.g. Visa or Mastercard) or a credit card (e.g. Hong Kong HSBC or Bank of China). The firm will ask customers to set a PIN code to protect transactions from fraud or error. The company will then contact you via a phone call to verify the new payment method. Note, the phone number provided must be Chinese.
Once the steps above are complete, simply head to your online broker’s payment portal and select the WeChat Pay logo. Finally, follow the on-screen instructions to enter the amount and transaction date. Any fees should also be displayed.
Verdict
WeChat Pay is an easy-to-use mobile app that offers low-cost payments and a secure digital wallet. The payment service is one of many features offered in the WeChat app, which aims to provide Chinese residents with a central hub for various online activities, including shopping, gaming and socializing. So for traders based in China, it is an excellent option. However, investors based elsewhere may find it easier to use an alternative like PayPal, Skrill or Neteller.
FAQ
What Is WeChat Pay?
WeChat Pay is an integrated payment service and wallet, that forms part of the WeChat app. It facilitates quick and secure payments directly from your bank account to vendors or transfers to other users. It is one of the largest payment platforms in China.
Is WeChat Pay Safe?
WeChat Pay has strict account requirements, alongside encryption technology, transaction insurance and payment tracking. These measures are in line with other industry heavyweights and should provide users with a degree of comfort.
Why Is WeChat Pay Popular?
The payment service is successful, in part, because it can be integrated into social media, gaming and other online services via the all-in-one app. The platform makes it easy for Chinese traders and residents to manage their digital life.
Is WeChat Pay Available In Other Countries?
In theory, WeChat Pay is available to users based outside of China if they have a Chinese address or bank account. This includes traders in the UK, Thailand, Europe, Pakistan, Nigeria, Macau, Nepal, The Philippines, Malaysia, Kenya, Japan, Germany, Namibia, New Zealand (NZ), Vietnam, UAE, Singapore, South Africa, USA, Indonesia, France, Australia, Canada, Hong Kong, Ghana, Zambia and Cambodia.