(Yicai Global) Feb. 1 -- Chinese mobile payment providers are accelerating efforts to extend their influence abroad as the sector rises rampantly at home, and overseas lenders are looking to get in on the action.
UK-based Standard Chartered Plc's China unit recently rolled out payment services for WeChat, the social and lifestyle platform run by Shenzhen-based tech firm Tencent Holdings Ltd. The move follows in the footsteps of mainland divisions under other foreign lenders, such as Woori Bank, Hana Bank, The Bank of East Asia and Hang Seng Bank.
At least 40 percent of retail transactions in China are made via third-party payment providers, according to a Goldman Sachs report in August. The value of transactions made through such platforms soared 74 percent to USD11.4 trillion from 2010 through 2016.
The nation's fintech giants now want to exploit their dominant market positions abroad, and competition between Tencent and online retail stalwart Alibaba Group Holding Ltd.'s payment arms is heating up.
Alipay, Alibaba's payment platform, has teamed up with more than 250 overseas institutions, including Citigroup Inc., Standard Chartered, Barclays Plc and Deutsche Bank AG. The group also allows Chinese and foreign shoppers to use Alipay when buying on its e-commerce stores, such as Tmall and Taobao.
WeChat began allowing users to link credit cards issued outside the mainland this month, making it easier for foreign users to shop online and make everyday payments in China.