Chinese Payment Methods Can Boost Sales Dramatically
How retailers can integrate the Chinese super apps Alipay and WeChat Pay into their points of sale and tap into a highly attractive target group
A huge number of Chinese people use their smartphones to get everyday tasks done, including shopping. Almost everyone in China takes their “mobile wallet”—that is, the popular apps Alipay or WeChat—wherever they go. A total of 600 million Chinese people use these apps regularly and can thus buy practically everything hassle-free with a mobile, contactless solution. Credit cards are rare and cash, too, is hardly used in shops.
Opportunities for merchants in Germany
Some 12.4 million Chinese tourists visited Europe in 2017 and, according to estimates, the number is set to rise to 20.8 million by 2022. On average, every Chinese tourist spends more than €3,000 on shopping, particularly for fashion and luxury goods, during their trip. Visitors from the People’s Republic are therefore a highly attractive target group.
By integrating mobile payment solutions such as Alipay and WeChat Pay into their sales channels, merchants in Germany can make payment far easier and straightforward for Chinese customers.
Other payment methods—for example, cash and credit or debit cards—are often impractical due to daily payment limits or because they are not accepted at the point of sale (POS). Processes and services are difficult to digitize.
The mobile payment methods Alipay and WeChat Pay also offer the opportunity to set up individual marketing campaigns and bring customers’ attention to participating stores. Coupons and promotions—for example, for Golden Week, Singles’ Day, or during Chinese New Year—can be positioned in the apps in cooperation with merchants. Analyses are available to measure the results of these campaigns in terms of revenue growth.
Merchants’ sales increases also reveal just how successful integrated solutions such as Alipay and WeChat Pay are:
• Some merchants who implemented Alipay as a payment method managed to increase their sales to Chinese customers by more than 350% in one year.
• For individual merchants, the average amount for Alipay transactions processed through Wirecard was approximately €800 (compared with €750 in November 2016).
• So far, the highest single transaction made using Alipay via Wirecard was around €40,000.
• In the month in which Golden Week falls, some merchants see their sales double
“By integrating mobile payment solutions into their omnichannel strategy, companies can cover the entire sales value chain and learn a lot about their customers and their buying behavior.”
Marion Laewe, Vice President,
Sales Consumer Goods, Wirecard AG
Since July 2018, Chinese tourists have been able to use Alipay and WeChat Pay at the Stuttgart-headquartered fashion and lifestyle company Breuninger. “With the support of Wirecard, we successfully integrated Alipay and WeChat Pay into our sales processes. Since then, we have been able to offer our Chinese customers exactly the same service as they have at home,” says Christian Witt, Director Corporate Communications / Marketing Cooperations and Sponsoring at Breuninger.