PayPal Integrates WeChat Pay for Cross-Border Transactions in China

PayPal Users Can Now Make Cashless Payments in China Using QR Codes

Tencent, the Chinese technology giant, has announced that PayPal users will be able to make cashless payments in China using QR codes through its extensive merchant network, WeChat Pay. This move is designed to attract more foreign tourists, capitalizing on China's growing efforts to bring in more visitors.

WeChat Pay offers a range of services, including social media and messaging, in mainland China. The feature will be available to US-based PayPal users first, with more markets to follow. This expansion is likely to provide greater convenience to foreign visitors, as cashless payments have become increasingly common in China.

WeChat Pay and Ant Group's Alipay, part of the Alibaba e-commerce empire, are widely available across China, including in taxis and restaurants. This widespread adoption of cashless payments is a key factor in China's efforts to attract more foreign tourists.

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Tourism contributed more than 4% of China's economy in 2024, according to official data. China has been expanding visa-free access to travellers from dozens of countries, including the UK, Spain, and Australia. However, US travellers still need a visa to enter China, except for brief transits for those heading to third countries.

The number of foreign visitors, excluding those from Hong Kong and Taiwan, plunged during the COVID-19 pandemic, when China closed its doors to most foreign arrivals and imposed stringent quarantines. However, it has since surged past the nearly 32 million visitors recorded in 2019, to over 35 million last year.

The PayPal move also aligns with a global trend of integration of payment platforms through mutually recognised cross-border QR codes. However, the impact of the QR code option with PayPal may be limited in terms of its overall benefit for Tencent, given the current low volume of US travellers to China.

WeChat Pay has allowed users to link their foreign bank cards since 2019. Tencent will also be offering a transaction fee waiver for first-time users linking their international bank cards to WeChat, in an effort to encourage wider use of that option. Transactions by foreign travellers in China jumped nearly 80% year-on-year in January-April.

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Note: Official data shows that tourism contributed more than 4% of China's economy in 2024.