![]() Bytedance is building an e-commerce platform on Douyin around its active livestreaming community.Payments are processed by Ulpay, the Hubei-based firm it acquired in 2018.Ĭontext: An in-house payment tool is essential to many of Bytedance’s offerings, including e-commerce and lending services.Douyin Pay allows users to link cards from 10 banks including Bank of China and China Merchants Bank. The app previously supported WeChat Pay and Alipay.Bytedance said in a statement to TechNode that Douyin Pay was rolled out by the company to “supplement the existing major payment options.” A Bytedance spokesperson said the feature had been available for a while and was previously in test mode.The payment method allows users to buy virtual gifts for livestreamers and pay for goods on the app’s e-commerce platform. Together they hold nearly 95% of China’s online payment market, according to iResearch (in Chinese), a market research firm.ĭetails: Douyin recently added Douyin Pay onto its checkout page, Chinese media reported Tuesday. E-commerce behemoth Alibaba’s Alipay and internet firm Tencent’s WeChat Pay, a feature inside the instant messaging app WeChat, are the two dominant players in the market.The company in September inherited (in Chinese) a payment license from a small payment firm based in the central province of Hubei it acquired two years ago. Bytedance’s ambition to tap into the payment sector have long been hampered by China’s strict finance regulations. ![]() Why it matters: Douyin, the domestic version of TikTok, is one of China’s most used apps with 600 million monthly active users as of September. And it seems that ByteDance understands this very well.TikTok’s Chinese owner has rolled out an e-wallet feature on its Douyin video-sharing app, a move that could pose a significant threat to the Alipay and WeChat duopoly in China’s mobile payment sector. Understanding this trend and using it for business growth is the key to success for any company. The development of modern technologies, convenience and ease of use have led to the growing popularity of mobile payments all over the world. The creation of online payment services creates tough competition in the electronic payment market. The fintech startup made it possible to create its own product in a short period. But ByteDance bought Wuhan Hezhong Yibao Technology, which has held a license since 2014. In 2016, the People's Bank of China stopped issuing licenses for fintech operations for fear of losing control over the fintech sector. How did ByteDance get permission for financial transactions in electronic payments? WeChat Pay - developed by Tencent - takes 39% of the market.īyteDance is not going to watch this state of affairs in silence.China's largest marketplace JD.com and the Meituan food delivery service have already launched their own online payment systems.Īccording to Analysys, there was about $8 trillion worth of transactions in China's mobile banking market in Q4 2019 alone. To maintain such figures, the company decided to create an electronic payment system.īyteDance is not a pioneer in this matter. Compared to the same period in 2019, revenue grew by 130%. Why does TikTok need online payment system?īyteDance earned more than $5.5 billion in the first quarter of 2020 alone. And users can choose Douyin Pay from the suggested alternative systems at checkout. She adds a link in the description that leads to a page with the sale of this device on AliExpress, Taobao, eBay, etc. For example, a blogger uses a smartphone in his video. To do this, they just need to add a link to their video. improve the quality of interaction between customers and the Douyin platform.Ĭompanies and retailers already have access to redirect users to product sales pages.Advantages of Douyin PayĪccording to ByteDance, the appearance of Douyin Pay is intended to: They created their payment service Douyin Pay inside the video platform. However, the owner of TikTok, ByteDance, did not stop there. Chinese users have been able to make payments directly from Douyin for more than four years, thanks to third-party services WeChat Pay and AliPay. Douyin is a localized Chinese version of the popular video platform TikTok.
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