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In 2016, Chinese tourists spent A.2 billion in Australia, and this figure is expected grow to A billion by 2020.Recently, nine Australian cross-border payment service providers have partnered with We Chat Pay to connect Australian merchants to Chinese consumers.In 2016, 38 trillion Yuan (A.5 trillion) was exchanged via mobile payment – a sum 50 times larger than the United States, the world’s second biggest market.
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It is not unusual for internet companies to conduct censorship according to local law, but in a country like China the law can be used to persecute dissidents and activists.
Arguably, tech companies are as much victims of the system as users.
We Chat Pay allows local merchants to receive payments to their Australian accounts within a shorter time frame and at a lower transaction cost than credit cards.
More than 10,000 shops and restaurants in Australia are using the We Chat Pay system.
Although the Chinese Communist Party urges its firms to expand into global markets, the party’s intimate relationship with China’s tech sector has made overseas consumers wary.
Tech products from China, such as affordable smartphones, are regularly accused of having security flaws and even claimed to be tools for government spying.We Chat’s success has been powered by the platform’s mobile payment service, Wechat Pay, which assists with every aspect of a user’s life – from shopping for clothes and hailing taxis, to organising hospital appointments and ordering food deliveries.Now, demand from Chinese tourists is increasing its uptake in Australia, and Australians are using We Chat too.At this stage, only customers with Chinese bank accounts can use We Chat to make payments, so the global push still largely relies on Chinese consumers.However, the app’s latest venture in Malaysia suggests the company is now planning to target overseas domestic users.Banknotes seem destined to disappear in China: we’ve gotten to the point where even taxi drivers have begun refusing crumpled 10 Yuan bills at the end of a ride and shopkeepers raise their eyebrows as soon as you take out a 100 Yuan banknote because they don’t have enough change to give you the rest.