Read more from Author Rachel Maga here: https://globelivemedia.com/author/rachel-maga/

In China, Tencent’s WeChat Pay and Alibaba-affiliated Alipay have long dominated digital payments, but both companies are constantly being challenged by new challengers. A newcomer to online payments is Douyin, the Chinese version of TikTok.

Douyin has previously been able to pay with Alipay and WeChat Pay, but now Douyin Pay has been added.

A Douyin spokeswoman said, “Douyin Pay is an addition to the existing major payment methods and ultimately enhances Douyin’s user experience.”

Payments are a natural step for Douyin, whose e-commerce business is growing. For example, a user can go to a product link while watching a video showing an influencer about a lipstick. If you have a lot of incentives, you may eventually pay with Douy in Pay instead of the familiar WeChat Pay or Alipay.

Other Internet giants, such as e-commerce giant JD.com and food delivery service Meituan, are also trying to get their users to use their payment methods, but it’s difficult to break the oligopoly of the market. Overall, WeChat Pay and Alipay handle about 90% of China’s electronic payments.

As seen in other Internet companies, Douyin’s parent company, ByteDance, has acquired the long-awaited payment license by acquiring a payment company. In September 2020, a company led by ByteDance founder Zhang Yiming acquired payment solution company Wuhan Hezhong Yibao Technology Co. As a result, ByteDance services such as Douyin and Toutiao (Toutiao today) are now able to offer payment capabilities.

For example, a user can receive an electronic red packet charged with cash in a Douyin campaign and deposit the cash in their bank account.

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Douyin Pay

Douyin Pay seems to have arrived at a good time before the Chinese New Year in February. During Chinese New Year, family and friends give each other red packets (red envelopes). Over the last decade, WeChat has made electronic versions of auspicious envelopes with money familiar, which led to the early WeChat Pay leap.

According to China Business News Media Late Post, Douyin has signed with CCTV (China Central Television), the red envelope technology provider of Spring Festival Gala, the station’s annual big advertising event, the countdown show. It is said that it will be. Shortly after its founding, Alibaba’s rival Pinduoduo signed the deal in 2020 in an attempt to increase its payment users.

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