Market Overview

Walmart Drops Alipay, Picks Up WeChat Pay

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It seems like Walmart Inc. (NYSE: WMT) is adding a fresh leaf to its growth story every day in a bid to bolster business and enrich consumers' shopping experience to stay firm amid the intense retail competition. Incidentally, news surfaced that the big box retailer clinched a deal with Tencent Holdings Limited (OTC: TCEHY) to accept the latter's WeChat Pay as a mode of payment.

Acceptance of China's popular WeChat Pay method of payment is likely to enhance customers' convenience and strengthen Walmart's business. Subsequently, the supermarket giant discontinued Alibaba (NASDAQ: BABA)'s Alipay payment method across all stores in the Western parts of China including places like Sichuan, Yunnan and Gansu.

Walmart, which started using China's leading e-commerce player's Alipay back in 2015, shook China's retail space with this switch. Notably, Alipay and WeChat Pay are the top-two payment methods used by Chinese e-commerce shoppers, with the former currently ahead in the game. Sources suggested that dropping Alipay and picking WeChat pay will enhance Tencent Holdings' position in its payments war with Alibaba.

If Alibaba is China's number one e-commerce player, Tencent Holdings dominates the social media space, being the largest stake-holder in China's second largest online retailer – JD.com. Coming back to Walmart, which commands the third-largest stake in JD.com, the company took this decision only to enhance consumers' experience and drive business. In fact, sources revealed that the largest U.S. retailer remains focused on entering into alliances to offer various payment solutions with increased benefits.

Walmart's focus on developing convenient payment methods is well reflected by its Walmart Pay mobile payment system, which is supported by any smartphone that can download the app. On the contrary, mobile payment options by Apple (NASDAQ: AAPL), Samsung and Android are restricted to specific devices only.

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The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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