Douyin, the Chinese version of the TikTok app, follows the path of giants Tencent with WeChat Pay and Alibaba with Alipay by launching its own e-wallet (or digital wallet). Called Douyin Pay, it is already integrated into the existing payment options within the ByteDance social network, reports TechCrunch.
A logical continuation of Douyin’s ambitions in e-commerce
In 2020, and under the influence of the health crisis, e-commerce has seen an unprecedented growth acceleration. If social networks understood their importance even before the coronavirus hit, their motivation was quick Create features that encourage purchases from their platform has grown in line with user needs.
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For this reason, social platforms have intensified their efforts in this direction in the last few months. For example, we’re keeping Pinterest, which added a purchase register to the results of its visual search tool, or Instagram, which launched its shopping features on IGTV, but also on Reels.
Unsurprisingly, TikTok (and its Chinese version called Douyin in particular) hasn’t escaped the rule by giving its users the optionBuy products directly from the app. A feature that Walmart uses during its live shopping event on TikTok. The ByteDance app goes one step further and starts its own payment service in China.
Baptized Douyin PayThis is aimed at “Add to the main existing payment options and ultimately improve the user experience on Douyin.” said a spokesman for the social network. In fact, it is also said to be competing with the two giants of the Middle Kingdom who are none other than AliPay and WeChat Pay. Owned by Alibaba and Tencent, You alone manage 90% of electronic payments in China.
Fintech under the microscope of the Chinese government
For ByteDance, the start of Douyin Pay was essential and had to happen sooner or later. But the timing was chosen seems particularly troublesome. Fintechs have been targeting the Chinese central bank since the end of 2020 and appeals against the giants of this sector have continued to grow. For example, the Ant Group was ordered to review its financial services and even forced itself to pull some back to comply with the new regulations.
Because, China is increasingly concerned about the rapid growth of these players. At the fintech forum in early December 2020, Guo Shuqing, chairman of the Chinese Banking and Insurance Supervisory Authority (CBIRC) said: “Given the rapid growth of fintechs, we will take a positive and cautious approach. We will encourage innovation while strengthening risk control to respond to new problems and challenges. “.
While its historical competitors are scrutinized more than ever, Douyin Pay could use their difficulties to make it easier for them to succeed. On the contrary, it might as well run into the same problems and have a particularly difficult start. A double-edged strategic decision that ByteDance seems to be making, for better or for worse.
