WeChat Payment Crossborder is not particularly new, but to a lot of businesses outside China it can still seem like magic.
The concept is simple: customers pay with their regular WeChat account in RMB, and the money directly arrives in your oversea account in the local currency. As of today (October 11th) , it supports 8 foreign currencies: USD, Euro, Australian dollar, Singapore dollar, Korean won, Japanese yen, British Pound and Hong Kong dollar.
How to apply:
Go to the following url:
What are the fees?
Account creation fee: free
Transaction fee: 3%
Settlement date: T +1 (T stands for transaction date)
Minimal settlement amount: 5000 USD
Bank fee: shared (Tenpay covers bank fee for transferring money out from the Chinese bank; other charges such as cost of intermediary banks or receiving banks are covered by account owner)
What are the requirements?
Any foreign company can apply.
But there is a catch: you will need to have a China visible WeChat Official Account (OA). Two ways you can apply for this type of account:
For most companies, you need to find a local company who has Chinese business license to apply for a Chinese OA.
For foreign companies who are exporting a physical product to China, you can create a Chinese OA with your foreign business license.
You will also need a local company (with a Chinese business license) to enter the agreement and take part of the legal risk (contact email@example.com for further information about this process)
Application process lasts for about two months (as of today)
Why is it useful?
The usefulness of WeChat payment cross border accounts can hardly be overstated. They will mostly benefit two industries.
The WeChat cross border payment system enables Chinese users to purchase items directly from shops, hotels or restaurants abroad without having to exchange currency or withdraw money: a key factor which will increase the amount of purchases among Chinese tourists.
WeChat cross-border will also enable companies outside China to sell in the Chinese market without having to set-up shop in China.
Source: Walk The Chat