Visa and Tencent Financial Technology Enhance Global Partnership to Support Digital Wallet Remittances

Published 5 months ago

Visa, a global leader in the digital payments sector, and Tencent Financial Technology, a financial technology branch of the international Internet company Tencent, have announced a partnership to allow Weixin users to receive remittances directly into their digital wallets. The collaboration was unveiled at the Singapore Fintech Festival 2023 and will expand the reach of the Visa Direct network to over one billion Weixin users in Mainland China, a significant player in the global remittance market.

Growth of Digital Wallets

Digital wallets are among the fastest growing financial tools, with the number of wallet users globally projected to surpass five billion by 2026. These wallets offer users the convenience of not having to share account or card details to receive funds. The only requirement is the recipient’s wallet ID or registered phone number, which simplifies transactions and provides a safe, seamless, and reliable option for businesses, especially for cross-border transactions.

Shirley Yu, Group General Manager at Visa Greater China, noted that digital wallets are becoming an increasingly popular choice for cross-border transfers, with growth of 48 percent in 2021, equating to US$16 billion. She highlighted the high penetration of digital wallets in Asia Pacific, including Greater China, India, the Philippines, and Bangladesh, which are some of the world’s largest inbound remittance markets. She also emphasized the importance of digital wallets in reaching populations without access to traditional banking services.

Expanding Visa Direct’s Reach

The collaboration between Visa and Tencent Financial Technology is part of Visa’s ongoing efforts to broaden the reach of Visa Direct, which already includes partnerships with Thunes and TerraPay. The partnership will extend Visa Direct’s reach to over 8.5 billion endpoints, which includes over three billion cards, three billion accounts, and 2.5 billion digital wallets. Visa Direct is a global money movement facilitator, enabling the transfer of funds to eligible cards, bank accounts, and wallets worldwide.

Royal Chen, Vice President of Tencent Financial Technology, highlighted the significance of the partnership with Visa in creating a new generation of global payment networks. He noted that it would allow for seamless connections between customers of financial institutions in the Visa Direct network and Weixin users.

Tenpay Global’s Role

Tencent Financial Technology’s cross-border payment business, Tenpay Global, has already partnered with more than 30 global remittance institutions. This partnership connects remittance users in over 60 countries and territories with Weixin users. Tenpay Global’s innovative remittance solution allows global fintech institutions to join Weixin’s open ecosystem by leveraging standard APIs and robust global fund processing capabilities. As a result, qualified Weixin users in Mainland China can now receive remittances from abroad directly into their Weixin Wallet balance.