Tencent Holdings recently announced the closure of its six year e wallet service WeChat Pay Malaysia, as part of a strategic shift, in the Southeast Asian country. The Chinese tech giant is now focusing on meeting the payment needs of tourists visiting Malaysia. From August 1 onwards new registrations for WeChat Pay Malaysia have been halted, with plans to fully discontinue payment services by September 1.
WeChat Pay Malaysia users have been advised to withdraw their funds before the end of the year. However Tencent clarified that messaging services through WeChat and the use of its mainland e wallet service, Weixin Pay will continue unaffected in Malaysia. A company spokesperson mentioned that this decision reflects Tencents revised business strategy, in the country, which will now emphasize “RMB denominated border payments.”
Tencent’s New Focus on Chinese Tourists
Tencents recent move to shut down WeChat Pay Malaysia coincides with Chinas recovery, from the pandemic in terms of tourism. The companys objective is to support businesses in tapping into the growing market of tourists by offering them secure and convenient payment options through Weixin Pay. This strategic shift aligns with Beijings goal of attracting visitors to China.
Apart from its initiatives in Malaysia Tencent has also extended the reach of Weixin Pay to the Maldives aiming to serve 8,000 merchants by the year end. Moreover they plan to simplify payments for tourists in China by allowing them to link their credit or debit cards from global providers like Visa, Mastercard, American Express, Discover Global Network and JCB. Additionally WeChat Pay Malaysia is exploring partnerships with e wallets to enable seamless cross border QR payments, for Malaysian travelers heading to China.
