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With the Chinese New Year holiday around the corner, Douyin Pay appears primed to enjoy patronage during this period.
The Chinese version of Tiktok Douyin is the newest entrant into the online payment system in China. It would be competing against Tencent WeChat Pay and Alibaba’s Alipay. The video app recently added an e-payment feature to its app and it is called “Douyin Pay.” This means the app is taking a more essential step into becoming a growing e-commerce business.
A spokesman for Douyin said the new feature is created to supplement the existing payment options while also enhancing the user experience of the app. The app users would have the opportunity to be directed to a product link when watching a video review from an influencer.
And instead of being directed to WeChat Pay of Alipay, they may essentially opt for Douyin Pay especially when the incentives are great enough for them.
Douyin’s Parent Company Entering into Strategic Partnerships
ByteDance, the parent company of Douyin, has acquired different payment licenses through its purchase of payment firms. Towards the end of last year, the founder of ByteDance bought a payment solution provider called Wuhan Hezhong Yibao Technology Co. The license of this firm would grant Douyin and other services of the parent company the ability to offer payment features to their users.
The payment license also means that users effectively receive payments for a Douyin Campaign and such cash can be deposited into their local bank accounts.
And with the Chinese New Year holiday around the corner, a Douyin e-payment feature appears primed to enjoy patronage during this period. During this holiday, the Chinese are noted to gift families and friends red packets. One of the ways WeChat was able to worm its way into a wider usage was when it popularized the digital version of these envelopes.
Douyin has already signed up with the state broadcaster of the country, CCTV, to help it prove its red envelope technology for Spring Festival Gala. This festival is a major advertising event of the year that was used by Pinduoduo in an attempt to grow its own payment users.
China’s E-payment Industry Is Dominated by a Duopoly
Alipay and WeChat Pay account for over 90% of all e-payments made in the most populous country in the world.
Alipay is integrated with Alibaba, the leading online retail store, in the world. It allows its users to be able to make and receive payments through its platform. And merchants on the online store are also able to receive payment through their platform too.
WeChat Pay, on the other hand, is integrated with WeChat, the Chinese version of WhatsApp and Facebook. Through this chat application, users are also able to send and receive payments from their families and friends.
However, the dominance of these two could be curtailed with the implementation of the central bank digital currency that the Chinese authorities are working on extensively. The digital yuan project could effectively reduce the dependence on these apps as the entrance of this virtual asset poses an enormous threat.