The first photographs of customized digital yuan wallets supplied by Tencent’s e-payment network WeChat Pay have surfaced. Despite the fact that the wallets are still in beta testing and aren’t entirely functioning, certain media sources, such as Sina, appear to have been able to open wallets and test their functionality.
WeChat Pay and its main competitor, Alibaba’s Alipay, have a 15 percent share of China’s payments industry. While the People’s Bank of China (PBoC) has gone to great lengths to stress that the digital CNY and e-payment platforms such as WeChat Pay are fundamentally different, some say Beijing is trying to break up the e-payment duopoly with its own digital yuan app.
The “Tencent Digital Yuan Wallet,” as it has been dubbed, is a WeChat applet that will offer digital payment services “such as money transfers, receiving and paying, and bank card-related” functionalities.
Although WeChat Pay has already added basic digital yuan payment functions to its standard wallet user experience (UX) in pilot areas, the new applet will allow users to pay by simply scanning QR codes on their smart devices, rather than having to open the WeChat Pay platform and manually select the digital CNY payment option.
Users may also utilize “sweep” and other features to handle several payments or set up something similar to a standing order or direct debit on a traditional bank account.
According to the news agency, the innovation would make it “far easier for consumers to manage” their digital currency accounts.
(In Hangzhou, a TV reporter demonstrated how digital yuan may be used to pay for items both online and in-store at consumer goods retailers.)
Meanwhile, inhabitants of the Chinese cities that were recently added to the digital yuan pilot zones have spent USD 63 million on the token since it was launched 10 days ago.
The assertion was made by Meituan, an e-commerce site that accepts digital CNY payments in Tianjin, Chongqing, Guangzhou, Fuzhou, Xiamen, Hangzhou, Ningbo, Wenzhou, and Huzhou, Shaoxing, and Jinhua, as well as the “10+1” initial pilot locations.
The various promotional giveaways that local governments and banks have been participating in – with the stipulation that recipients use their tokens to pay for products and services in-store or online – will account for a significant portion of this sum.
(Citizens in Guangzhou began to use the digital yuan after the experiment was expanded, according to local reports.)
Takeout meal orders, supermarket buying, and hiring public transportation accounted for “90 percent of the digital CNY” transactions in the new cities, according to the e-commerce site (such as electric scooter and bicycle hire).
Furthermore, it appears that merchants, rather than customers, are providing much of the motivation to adapt. JRJ noted that, unlike card transactions, the e-CNY had no handling fees and enhanced withdrawal convenience. “many merchants actively recommend the digital yuan as a payment method for their customers.”