Following the recent completion of Alibaba’s three-year restructuring development, and months of beta testing, Taobao users will soon be able to use WeChat Pay, in addition to the current digital payment platform Alipay.
Alibaba Group’s core e-commerce division Taobao and Tmall Group (TTG) is planning to implement the change in the coming month.
For years, Taobao and WeChat have had a contentious rivalry – almost entirely blocking each other’s services.
In 2013, WeChat blocked Alibaba’s messaging app Laiwang, which resulted in a string of restrictions from both sides.
The two companies have been gradually working to lift these restraints in recent years; Taobao tested a WeChat QR code payment system in 2023. However, the process was problematic and drew criticism from users.
For WeChat’s parent company Tencent, the benefits of Taobao allowing WeChat Pay are clear: immediate access to a new revenue stream – Taobao will have to pay a payment processing fee to WeChat for each transaction completed via WeChat Pay.
Conversely, Taobao will likely see an increase in spending and merchant’s advertising purchases.
Earlier steps have laid the groundwork for this collaboration; Alibaba and Tencent have begun cooperating by allowing WeChat Channels, Moments, and mini program ads to link directly to Taobao and Tmall.
Taobao is already a dangerous hole to go down for many of us – we bet you have experienced staring at a pile of delivery boxes outside your door and wondering if any of those purchases were necessary.
For better or for worse, it will soon be even easier to make those impulse buys!
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[Cover image by Yinmai O’Connor/That’s]