(Yicai Global) Dec. 26 -- Tencent Holdings Ltd. [HK:0700] and its payment platform Tenpay inked an agreement with subway transport system operator Unittec Co. [SHE:000925] to further expand the payment market in the public transport field as the Shenzhen-based company races Alibaba Group Holding Ltd.
The Zhejiang-headquartered firm said yesterday that it will work with the Chinese internet titan to leverage their experience with Big Data, the internet and automatic fare collection to create a pilot program.
The two parties will also cooperate in transport customer service management, membership systems and advertising. They will collaborate on standards for QR code applications in the industry.
Tencent and its biggest rival, Alibaba [NYSE:BABA], are vying for the mobile payment market in the public transport sector. Tencent took the lead by introducing services to enter metros in Guangzhou by scanning QR codes with its WeChat app last month.
Alibaba's payment platform Alipay unveiled similar services in Shanghai, Guangzhou and Xiamen earlier this month.