Alibaba Group logo displayed on a mobile phone.
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Chinese tech giant Alibaba said on Wednesday that its core Taobao and Tmall e-commerce platforms will allow payments via Alipay Tencent’s First time using WeChat app.
Previously, Alibaba’s Chinese e-commerce site only accepted limited payment methods and promoted WeChat Pay rival Alipay as one of the main payment methods. Alipay is run by Ant Group, a subsidiary of Alibaba and also founded by Jack Ma.
“We have always been open to collaboration and actively explore interoperability and partnerships with our peers,” an Alibaba spokesperson told CNBC. “We have always been committed to making shopping more convenient, enjoyable and efficient, thereby enhancing the user experience. ”
Taobao and Tmall may start accepting WeChat Pay payments this month, a person familiar with the matter who was not authorized to publicly disclose details told CNBC.
The historic move comes as Alibaba looks to revive growth in its Chinese e-commerce business, which has been facing pressure from weak Chinese consumers and rivals alike. Jingdong amd Temu Owner PDD.
Alibaba CEO John Woo has previously said that Taobao and Tmall businesses should resume growth in the second half of the company’s fiscal 2025.
WeChat has more than 1.3 billion users worldwide, most of them in China. WeChat Pay is one of the largest mobile payment applications in China.
Alibaba could increase its market share in less developed areas of China by allowing users to conduct transactions through WeChat Pay on Taobao and Tmall, sources said.
The company’s biggest rival, JD.com, has also long allowed WeChat Pay to be used on its platform.
Another theme in the background is Beijing’s regulatory scrutiny of Chinese technology companies, urging them to dismantle so-called “walled gardens” that block rival products.
Alibaba and Tencent, two of China’s largest online companies, have built their dominance through a vast array of services, often centered on their so-called super apps. This prominence created a situation where, for a long time, competitors were not allowed to access each other’s services on their respective platforms.
Tech giants began changing these practices in the past few years amid criticism from regulators. In 2021, Tencent began to allow users to access external links in one-on-one chats. For example, if someone shares a link to Alibaba’s Taobao app in WeChat, the user can open the link without leaving the messaging app. That same year, some of Alibaba’s other apps began supporting WeChat Pay.
Last week, China’s market regulator said Alibaba had completed a three-year regulatory “rectification” process after receiving an antitrust fine of 18.23 billion yuan ($2.6 billion) in 2021.
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