In June 2024, with the opening of WeChat Pay's business collection codes, various WeChat Pay collection codes will be opened to all scenarios of the UnionPay network.
Prior to this, UnionPay QuickPass, Alipay and WeChat had already launched cooperation at the payment level to achieve interoperability in some scenarios. In 2021, UnionPay and WeChat realized the mutual recognition and mutual scanning of offline barcodes, and the access at that time was mainly personal codes. The new WeChat QR code acceptance scenario is mainly for business collection codes, and is more for small and micro individuals and merchants.
At present, users can scan the QR code to pay by opening the UnionPay app in the "main scan" scenario of various WeChat payment codes, and WeChat Pay supports UnionPay users to scan the code in any online or offline scenario.
This provides more payment options and a better payment experience for domestic and foreign consumers, and also optimizes the business environment for small, medium and micro enterprises. Under the guidance of the country's top-level design, UnionPay has opened up cooperation with various institutions, and the interconnection business of barcode payment is continuing to break the ice.
One-code pass, convenient payment
The most direct beneficiaries of the full interconnection between UnionPay and WeChat are domestic and foreign consumers.
In the past, when consumers made purchases at offline merchants, the WeChat payment code had to be scanned with WeChat, and the UnionPay payment code had to be scanned with the UnionPay app, and consumers needed to choose the corresponding payment channel according to the payment method provided by the merchant. However, if some merchants only provide WeChat and Alipay payment codes, then users who are accustomed to using UnionPay, especially some foreign visitors to China, international tourists and other groups, will have a lot of inconvenience.
Now, the UnionPay App and WeChat Pay have officially realized the mutual recognition and mutual scanning of offline barcodes, and consumers can open the UnionPay App to scan the QR code to pay in the "main scan" scenario of various WeChat payment codes.
That is to say, as long as there is a WeChat collection code, whether consumers use WeChat or UnionPay, they can scan the code to pay, and there is no longer a need to frequently switch applications due to the payment channels provided by the merchant, which greatly reduces the payment cost, simplifies the payment process, and realizes "one-code access".
Overseas users who only have the UnionPay app and do not have WeChat Pay can also make purchases at merchants that support WeChat Pay in China, making cross-border payments even more convenient.
All types of WeChat Pay payment codes are open to all scenarios of the UnionPay network, which means that in daily life, UnionPay UnionPay users, whether shopping online or in stores, can use the UnionPay App to scan the WeChat payment code to complete transactions.
At the same time, UnionPay has also joined hands with major commercial banks to launch the "Scan WeChat Collection Code, Non-stop Discount" campaign, where users can scan the WeChat payment code using the UnionPay app to enjoy discounts and point rewards, making the payment experience not only convenient but also affordable.
Two codes in one, business environment optimization
The integration of payment methods is not only convenient for users, but also a great boon for a large number of small, medium and micro merchants.
In the past, some merchants mostly had the phenomenon of "multi-code coexistence", and it was almost standard for merchants to display a variety of payment QR codes on the counter, allowing consumers to choose the corresponding payment method according to their own payment habits and preferences.
However, in this way, a variety of payment methods are set up, and merchants need to connect and maintain multiple payment platforms separately, and management fees such as handling fees and access fees will undoubtedly increase the operating costs of merchants and the complexity of operations. Moreover, merchants also need to manage the flow of funds from different channels, and there are certain difficulties in reconciliation and settlement, resulting in inefficient fund management.
Now, after the integration of payment methods, merchants only need to display a collection code to accept UnionPay, WeChat and other payment methods, without adding a variety of different payment interfaces, you can use a single WeChat collection code to reach a wider range of user groups, simplify the cashier process, greatly reduce the burden of merchants on payment equipment and technical support, but also more convenient to process transactions from different payment channels, improve the efficiency of fund management.
At the same time, the compatibility of payment methods can also help merchants broaden their potential customer base. "Two codes in one" reduces the transaction time of consumers, whether it is consumers who are accustomed to using UnionPay or WeChat Pay, they can quickly and easily complete transactions at merchants, which improves customer satisfaction and payment experience from the side. In addition, users can enjoy discounts when they use the UnionPay app to scan the WeChat payment code, which can also stimulate users' willingness to spend to a certain extent and bring more payment traffic to merchants.
For merchants with overseas business, the interconnection between WeChat Pay and UnionPay barcode payment also simplifies the cross-border payment process, enabling international customers to conduct transactions more smoothly and helping merchants expand the international market.
The full-scenario access of WeChat Pay and the UnionPay network provides merchants with a more open, efficient and secure payment environment, optimizes the business environment, and brings real convenience and advantages to merchants.
Open cooperation to create payment convenience
In fact, the interconnection of payment barcodes has always been the direction of the regulatory authorities.
In 2019, the People's Bank of China (PBoC) clearly stated in the "Fintech Development Plan (2019-2021)" that it is necessary to promote the interconnection of barcode payment, break through the "barriers" of barcode payment services, and realize the mutual recognition and mutual scanning of barcode logos of different apps and merchants.
Since 2020, UnionPay has been in close communication with payment giants such as WeChat and Alipay to explore the possibility of interconnection of barcode payment, and has achieved some results.
In 2021, under the impetus of regulators, UnionPay announced that it had achieved mutual recognition of offline merchants' collection codes with WeChat and Alipay, but the initial scope was still small and limited to some regions. In 2022, UnionPay announced that it has basically covered multiple online payment scenarios such as Taobao and Tencent, supporting consumers to pay through UnionPay, and promoting online and offline interconnection simultaneously.
In March this year, the State Council issued the "Opinions on Further Optimizing Payment Services and Improving Payment Convenience", which pointed out the direction for the optimization and upgrading of payment services, further emphasized the openness and inclusiveness of the payment system, and the screws of the interconnection of barcode payment still need to be tightened again.
Therefore, in June this year, UnionPay and WeChat Pay opened all scenarios, and continued to expand the payment application scenarios, which is another achievement of the interconnection of barcode payment. It is also an effective practice for institutions to uphold a positive and open attitude, respond to the call of national policies, and continue to deepen payment interconnection under the guidance of the country's top-level design.
This is not only a technological innovation in the payment industry, but also a strong impetus for the reform of the supply side of payment.
The interconnection of payments is not a one-family affair, and requires the collaboration and participation of multiple institutions in the industry. In this process, UnionPay hopes to play the role of a hub, cooperate with major payment platforms and the commercial banking industry for a win-win situation, explore ways to improve the convenience of payment, and truly achieve "payment for the people".
Through technological progress, all institutions will work together to optimize the supply of payment services, promote the innovation and upgrading of payment methods, and improve the quality and efficiency of payment services, so as to better meet the diverse needs of the market and consumers, create a healthier and more convenient payment environment, and promote the reform of the payment supply side.
Payment is rooted in the needs of people's livelihood and the foundation of finance, and the interconnection of barcode payment plays an important role in prospering the market economy and facilitating the lives of ordinary people. The reduction of payment barriers is a great benefit to consumers, merchants and the entire payment ecosystem.
From a broader perspective, the interconnection of payments conforms to the country's expectations for the openness and sharing of the payment industry, as well as the requirements of regulators for improving payment efficiency and enhancing the resilience of the payment system, demonstrating the positive trend of open cooperation among payment institutions and promoting the reform of the payment supply side.
It is reported that China UnionPay will continue to play the role of the hub and coordination of card associations, continue to promote open cooperation with Tenpay, Alipay and other industry parties, with the deepening of technology iteration and policy guidance, a more efficient and inclusive payment ecosystem will gradually take shape.