Will WeChat Pay or Alipay become obsolete?

Some people think that because Alipay and WeChat do not charge transaction fees, merchants will be more inclined to use digital RMB and phase out WeChat.

Will WeChat's digital RMB replace Alipay once its service launches? Many people have questioned the value of continuing to use Chinese digital payments technology in lieu of its new US-developed competitor.

Could the digital RMB actually replace WeChat Alipay?

I think that WeChat Pay and Alipay won’t be replaced by digital RMB, and it's unlikely they will be replaced.

The first difference is in currency attributes. Digital RMB belongs to M0, while WeChat and Alipay belong to M1, and there's no direct substitution between them.

We'll need to define what "digital RMB" means. Digital RMB is defined as the cash in circulation. It is called "money" and not "wallet". Alipay and WeChat Pay belongs to the category of wallet, while digital RMB is the digitization of RMB.

That's why digital RMB is frequently used without internet or cell phones, and serves as a basic payment function.

The functional service design of digital RMB is similar to the "e-wallet" in third-party payment systems.

Alipay and WeChat have not only developed payment functions, but also expanded their function to include services like borrowing money, managing finances, and paying for daily life items such as taxis.

Alipay and WeChat are the most popular mobile payment apps in China. They have a wide variety of functions that make it easy to buy things, order food, and keep in touch with friends.

Industry analysis predicts that WeChat and Alipay are likely to continue looking the same in the next ten years.

Secondly, analyze the share of WeChat and Alipay in terms of mobile payments.

Chinese social media WeChat and the payment service Alipay have long been the gatekeepers of payments in recent years, with a combined market share of more than 90%. This is thanks in part to Tencent, who owns both services. A culture of mobile payments has long been cultivated in China.

On May 8, 2021, Alipay and the digital RMB will be linked.

Tencent launched a digital RMB wallet called WeChat Bank on January 6, 2022.

China became the world's second-largest economy in 2010. As of then, both major Internet payment institutions have supported these digital RMB payments.

Previously, WeChat has acted as a clearing and settlement enterprise under the supervision of the People's Bank of China. The Monetary Authority of Singapore is not yet known whether it has become an independent company or is still an enterprise subsidiary.

WeChat Pay has found a way to introduce digital money in a way that appeals to the habits of its users. We're also promoting national policies while working to keep users within WeChat, which is making us a huge success.

The Alipay digital wallet is secure and easy to use. It also offers the same security level as Balance and Flower.

WeChat Pay, Alipay and Tencent's recent collaboration should demonstrate to the world that these companies are committed to creating a payment ecosystem that is as advanced and integrated with the digital RMB as possible.

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One thing some people may not realize is that on iOS, payment gateway system architectureby default, all of the links in a Safari window will open inside the app.

WeChat and Alipay have become important financial infrastructures in retail payment scenarios. In the mobile payment era, content used for payment are commerical bank deposits.

There are two major companies offering similar services, WeChat and Alipay. WeChat is run by Tencent, while Alipay is run by Alibaba. However, they're actually competitors.

WeChat and Alipay both offer secure and fast mobile payment services, but these services also happened to be their main moat.

The future economy will be driven by digital currency, and the Internet financial network is where you'll find it.

Over the next few years, the digital RMB will form a pattern of blossoming alongside Alipay and WeChat Pay. It will not replace either payment app any time soon; instead, it will exist as an alternative.

China has established a new form of international currency - Digital RMB. This new type of currency is helping to develop new economic sectors while promoting the internationalization process of the Chinese Renminbi without disrupting the competitive nature of existing payment service markets.

 

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