Mastercard and WeChat Pay's partnership promotes widespread adoption of digital payments, boosting the travel industry and China's economy
MasterCard holders in China can now link their cards to WeChat Pay via the Weixin app, enhancing convenience and promoting digital payments for tourists.
The latest data from Mastercard shows a resurgence in cross-border travel. In the second quarter of 2023, travel rebounded to 154% of pre-pandemic 2019 levels, and it grew by 6% compared to the previous quarter, indicating a strong interest in travel experiences.
The study reveals that 70% of international travellers prefer using their own credit or debit cards abroad. However, using their cards in China has posed challenges since most merchants exclusively accept WeChat Pay or Alipay.
Mastercard’s partnership with WeChat Pay is a strategic move aimed at revolutionising cross-border business travel and elevating the convenience for attendees of major sports events. This partnership promises to reshape the landscape of financial transactions in China. With big international sports events like the Asian Games, China is excited to welcome more travellers from around the world.
With the integration in place, travellers can directly use their Mastercards for payments through WeChat Pay at over 800 million merchants throughout China, eliminating the need for cash or currency exchange. This offers a more convenient experience for shopping, dining, and exploring the country.
The integration removes concerns about fluctuating exchange rates. When travellers use their Mastercard via WeChat Pay, transactions are processed in their native currency, ensuring transparency in spending and avoiding surprises on their credit card bills.
WeChat Pay processed over RMB 100 trillion ($15.6 trillion) in payments in 2022, up 30% YoY
Figure 1: Number of annual active users of WeChat from 2011 to 2025
Source:- Statista
WeChat has steadily grown its user base over the years, surging from 960 million in 2011 to 1.2 billion active users, to date. It is estimated to reach 1.671 billion active users at the end of the year and will further grow to 1.8 billion in 2024 and 1.93 billion users by 2025. This remarkable compound annual growth rate (CAGR) of 15.49% can be attributed to a wide range of features, including popularity in China, and increased usage in other countries.
Economic impact on China
The partnership between Mastercard and WeChat Pay is expected to have a significant impact on the Chinese economy. The integration of Mastercard’s global network with WeChat Pay’s extensive merchant base will make it easier for international travellers to pay for goods and services in China, boosting expenditures by tourists and contributing to the economic growth.
According to a report by the World Tourism Organisation, China received over 145 million international tourists in 2021, and it sees sustained growth in the coming years. The Mastercard-WeChat Pay partnership is well positioned to drive this growth by promoting digital payments and leveraging China’s leadership in mobile payments to help popularise this payment method globally.
According to Statista, the statistics portal for market, consumer and company insights, the China payments market is projected to increase from $37.15 trillion in 2023 to $55.58 trillion in 2028, with a CAGR of 8.39%, between 2023 and 2028.
Secured and seamless experience
WeChat Pay provides a variety of payment methods, including QR codes, payment codes, mini programmes, and in-app transactions. These methods are secure and convenient, ensuring that financial transactions are safeguarded and have a seamless user experience.
The strategic partnership between Mastercard and WeChat Pay is a significant development in international travel and the China’s economy, with the potential to positively impact cross-border finance and digital payments around the world.