Executive Summary

• Tencent has partnered with China’s leading bank-card service provider UnionPay and its subsidiary UnionPay International to offer cross-border mobile payment services for WeChat Pay HK users traveling to Mainland China, starting October 1.
• This service will allow WeChat Pay HK users to make payments in Mainland China in Hong Kong dollars (HKD), for which payments will be automatically converted from Chinese Yuan (RMB) to HKD within WeChat Pay HK, where exchange rate quotes will be available for users to view.
• Four merchants have tied up with WeChat Pay HK in this pilot launch and we see more merchants joining this service in the future.
• We see this cross-border payment service as another key step in WeChat Pay’s overseas expansion plans for becoming a global payment gateway.