Tencent has announced that PayPal users will be able to make cashless payments in China through WeChat Pay's merchant network, in a move aimed at attracting more foreign tourists. The feature will initially be available to U.S.-based PayPal users, with other markets to follow.
WeChat Pay, along with Ant Group's Alipay, is widely accepted across China, including in taxis and restaurants. The integration with PayPal is expected to provide greater convenience for foreign visitors, as cashless payments have become increasingly common in the country.
Gary Ng, a senior economist at Natixis, said the move aligns with China's efforts to boost foreign tourism. Official data show tourism contributed over 4% of China's economy in 2024. China has expanded visa-free access to travelers from dozens of countries, though U.S. travelers still require a visa except for brief transits.
Foreign visitor numbers, excluding Hong Kong and Taiwan, surged past 35 million last year, exceeding the 2019 figure of nearly 32 million. Ng noted the PayPal integration also reflects a global trend of payment platform interoperability through cross-border QR codes.
Ivan Su, a senior equity analyst at Morningstar, said the impact may be limited initially due to the low volume of U.S. travelers. WeChat Pay has allowed foreign bank card linking since 2019, and Tencent is offering a transaction fee waiver for first-time users linking international cards. Tencent reported that such transactions by foreign travelers jumped nearly 80% year-on-year in January-April.
