Why overseas business entity need to register Wechat Pay for their sales in China? How to register, it is allowed to which countries? How about transaction fees?Today we would like to share you these import knowledge about Wechat Pay for foreign merchants..
What are the advantages of using WeChat pay for foreign business entities?
There are several advantages for foreign business entities to use WeChat payment:
Expanded Customer Base
- Access to Chinese Consumers: WeChat has a super huge user base with over 1.3 billion monthly active users in China. By accepting WeChat payment, foreign business entities can easily reach and serve this huge market segment, especially Chinese tourists traveling abroad or consumers purchasing overseas products or services online.
- Increasing Sales Potential: It provides convenience for Chinese customers who are accustomed to using WeChat payment, eliminating the need for them to use other payment methods or deal with potential language and currency exchange issues. This convenience can lead to increased customer satisfaction and higher conversion rates, ultimately boosting sales potential.
Simplified Payment Process
- Quick and Convenient Transactions: WeChat payment offers a seamless and efficient payment experience. Users can complete payments with just a few taps on their mobile phones, reducing checkout times and improving the overall shopping experience. This is particularly beneficial for businesses in high-traffic environments such as retail stores, restaurants, and tourist attractions.
- No Need for Cash Handling: Foreign business entities can avoid the hassle and risks associated with handling cash, such as the need for cashiers, cash registers, and security measures for storing cash. This not only simplifies the payment process but also reduces the potential for errors and losses related to cash transactions.
Currency Conversion and Settlement
- Real-time Currency Exchange: WeChat payment supports transactions in multiple currencies and provides real-time currency exchange services. Chinese customers can pay in Renminbi (RMB), while foreign merchants receive payments in their local currency. This eliminates the need for customers to exchange currency before making a purchase and saves them from additional exchange fees. It also simplifies the settlement process for merchants, reducing currency exchange risks and administrative burdens.
- Efficient Cross-border Settlements: The payment platform can handle cross-border transactions smoothly, ensuring timely and accurate settlement of funds between foreign business entities and Chinese customers or partners. This helps to improve cash flow management and reduces the risks and costs associated with traditional cross-border payment methods, such as wire transfers and international credit cards.
Marketing and Promotion Opportunities
- Leveraging WeChat Ecosystem: WeChat offers a wide range of marketing and promotional tools that can be integrated with WeChat payment. Foreign business entities can use features like WeChat official accounts, mini-programs, and social media advertising to engage with Chinese consumers, build brand awareness, and drive traffic to their products or services. For example, they can offer exclusive discounts, promotions, or loyalty programs to WeChat payment users, encouraging repeat purchases and customer loyalty.
- Data Analytics for Targeted Marketing: WeChat payment generates valuable data on consumer behavior, preferences, and purchasing patterns. By analyzing this data, foreign business entities can gain insights into their Chinese customers, segment their audience, and develop targeted marketing strategies. This enables them to deliver more personalized and relevant marketing messages, increasing the effectiveness of their marketing campaigns and improving return on investment.
Enhanced Brand Image and Trust
- Meeting Consumer Expectations: In China, WeChat payment is widely used and trusted by consumers. By accepting WeChat payment, foreign business entities show their adaptability and commitment to meeting the payment preferences of Chinese customers, which can enhance their brand image and reputation in the Chinese market. It gives customers the confidence that they are dealing with a modern and reliable business, increasing their trust and willingness to make purchases.
- Security and Reliability: WeChat payment has robust security measures in place to protect user information and transactions. It offers features such as data encryption, fraud detection, and payment guarantees, ensuring the safety and privacy of both customers and merchants. This security infrastructure helps to build trust between foreign business entities and Chinese consumers, reducing concerns about payment risks and enhancing the overall brand perception.
Cost Savings and Efficiency
- Lower Transaction Fees: Compared to some other international payment methods, WeChat payment generally has relatively low transaction fees. This can result in cost savings for foreign business entities, especially for those with a high volume of transactions. The reduced fees can contribute to improving profit margins and making their products or services more competitive in the Chinese market.
- Streamlined Operations: Integrating WeChat payment into business operations can streamline financial processes, reduce paperwork, and improve accounting and reconciliation efficiency. It enables merchants to manage their payments more easily, track transactions in real-time, and generate detailed reports, saving time and resources in financial management.
How foreign business entity to register Wechat pay?
Foreign business entities can register WeChat Pay through the following steps by using 3rd party professional agency, such as SODA Global Marketing.
-Submit Application Materials: Provide SODA with necessary materials, usually including business registration certificates, financial licenses, anti-money laundering agreements, identification documents of all directors, and information of primary business contacts and legal representatives.
- Wait for Review and Approval: The service provider will review and submit your application to Tencent. The review process generally takes about 1-2 weeks.
- Sign the Agreement and Complete Registration: If the application is approved, you need to sign relevant agreements with Tencent through the service provider to complete the WeChat Pay registration process.
Which countries are allowed to apply for Wechat pay
WeChat Pay can be applied for in the following countries and regions :
- Asia: China Hong Kong, China Macau, China Taiwan, South Korea, Japan, Thailand, Singapore, Indonesia, Philippines, Malaysia, Israel, Sri Lanka, Maldives, Kazakhstan, Kyrgyzstan, Saudi Arabia, Qatar, United Arab Emirates, India, Pakistan, Nepal, etc.
- Europe: United Kingdom, France, Germany, Italy, Switzerland, Netherlands, Sweden, Norway, Denmark, Finland, Austria, Greece, Hungary, Portugal, Spain, Ireland, Iceland, Luxembourg, Liechtenstein, etc.
- Oceania: Australia, New Zealand, etc.
- America: United States, Canada, etc.
- Africa: Kenya, South Africa, etc.
What are the required documents for foreign business entities to register WeChat Pay?
Foreign business entities generally need to prepare the following documents to register WeChat Pay:
- Business Registration Certificate: This is the basic document to prove the legal existence and business scope of the enterprise, such as the company's business license or equivalent registration documents in different countries.
- Financial License: It shows that the enterprise has the permission to engage in relevant financial business activities in its country or region, which is an important credential to ensure the legality and compliance of financial operations.
- Anti-Money Laundering Agreement: To prevent the occurrence of money laundering and other illegal financial activities, enterprises need to sign an anti-money laundering agreement to demonstrate their compliance with relevant laws, regulations and regulatory requirements.
- Identification Documentation of All Directors: Usually including the passports or other valid identity documents of all directors of the company, which is used to verify the identity and background information of the company's management personnel.
- Information of Primary Business Contacts and Legal Representatives: Such as the contact person's name, position, contact number, email address, and the legal representative's identity document, etc. This helps Tencent or its service providers to communicate and confirm relevant matters with the enterprise during the registration process.
- Bank Account Proof: Provide proof of the company's valid bank account, such as a bank statement or a letter of confirmation from the bank, to ensure the normal settlement of funds.
- Other Supplementary Documents: Depending on the specific situation and requirements of different countries or regions, additional documents may be required, such as tax registration certificates, business operation licenses for specific industries, and so on.
How much is the Wechat pay transaction fee for foreign company merchant?
For foreign company merchants, the WeChat Pay transaction fees are as follows:
- For transactions using international bank cards: If the single transaction amount is less than or equal to 200 yuan, WeChat Pay will bear the transaction fee. If the single transaction amount is greater than 200 yuan, a fee of about 3% will be charged.
- For merchants in eurozone countries like Germany, France, the UK, the Netherlands, and Spain: The offline payment rate is around 2.2%, and the online payment rate is around 2.5%.
- For American merchants: According to HantePay, the WeChat/Alipay payment collection service provider, the WeChat Pay transaction fee for American merchants is 2.5% for the basic version and 1.95% for the standard version (with an annual transaction volume of more than $20,000).
In conclusion, Wechat Pay is very useful for sales in China, for both online sales or offline line sales. Wechat Pay can be linked to Wechat Mini Program store or Chinese website store to receive CNY payments from Chinese customer. Kindly check here to apply your Wechat Pay from SODA Global Marketing now!
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