As of 2020, WeChat has over 1.2 billion users and 92% of the urban Chinese population use Alipay and WeChat Pay. WeChat began as a messaging app similar to Whatsapp. Since then it has evolved into a super-app. In short, it functions as Google, Facebook, Twitter and Whatsapp combined. In-app shopping features, such as Mini-Programs, have further added to WeChat’s portfolio of uses.
WeChat Pay is a payment feature within WeChat. It allows users to make mobile payments from multiple channels. Users have 3 methods of payment available for cross-border transactions: “Wallet Balance”, “Debit/Credit Card”, and “Mini Fund”. Transactions limits are then decided by WeChat and the relevant banks.
Chinese customers use WeChat Pay to make cross-border payments. You can top-up funds in your wallet or withdraw money to debit or credit cards whenever you want.
For cross-border payments, users are limited to ¥200,000 (around £23,000) per year and ¥50,000 (almost £6,000) per transaction or total each day.
After connecting your debit or credit card to your WeChat account, you can use your card to make cross-border payments.
In this case, individual banks set the limits for transactions. Typical limitations range from ¥10,000-50,000/£1,100-5,700 per transaction or total per day.
Examples:
- Industrial and Commercial Bank of China Debit Card Limit: ¥30,000/£3,400 per transaction
- Bank of China Credit Card:¥10,000/£1,100 per transaction
Mini Funds are a new feature on WeChat. You can use a Mini Fund to transfer money, scan QR Codes to make payments and credit card repayments.
You will also earn interest for placing your money in a Mini Fund.
Mini Fund payments are limited to ¥300,000/£34,000 per year.
No, merchants do not have any limitations. Alipay and WeChat Pay do not place limits on businesses receiving payments from customers.
Edited on 03/11/2020 to update statistics.