As cashless payment methods have become more widely available, WeChat Pay has garnered a great deal of attention. WeChat Pay is a payment service from China, where it is widely used. This payment option can be used in physical stores, as well as to make online payments on ecommerce sites.

WeChat Pay is also becoming an important means of payment in Japan, as inbound demand from Chinese tourists has risen; many businesses in Japan have adopted WeChat Pay to better accommodate these travelers.

This article looks at the basics of WeChat Pay, including its market size, how the payment system works, and the advantages and disadvantages of adopting it for businesses in Japan.

What’s in this article?

• What is WeChat Pay?
  
• How does WeChat Pay work?
  
• Why should businesses adopt WeChat Pay?
  
• How secure is WeChat Pay?
  
• How to adopt WeChat Pay with a payment processor
  
• Advantages of WeChat Pay
  
• Disadvantages of WeChat Pay
  
• Examples of WeChat Pay use in Japan
  
• Alternatives to WeChat Pay
  
• Meeting customer needs with WeChat Pay
  

What is WeChat Pay?

WeChat Pay is a mobile payment option provided by WeChat, a messaging app often compared to LINE, a popular messaging app in Japan.

WeChat Pay has become an indispensable payment method for Japanese businesses targeting inbound tourists from China, and it is now used throughout Japan by businesses such as department stores, restaurants, convenience stores, and airports. However, it comes with a significant limitation—customers can only use WeChat Pay in Japan if they are Chinese citizens.

How does WeChat Pay work?

WeChat Pay has two payment processes—one for physical stores and one for online payments. In either case, QR codes are used to process payments.

At physical stores

When using WeChat Pay at physical locations, such as restaurants or convenience stores, there are two ways to pay, and they are based on who presents the QR code: the business or the customer.

• If the business displays the QR code: In this case, the retailer displays a QR code on stickers or POP displays in the store. The customer can pay by launching the WeChat Pay app on their smartphone, scanning the QR code, and entering the amount owed.

• If the business does not have a QR code displayed: In this case, the customer can launch the WeChat Pay app on their smartphone and present a payment-only QR code on their screen. The store can then scan the code and enter the amount to be charged, completing the payment.

Online payments

Here’s a breakdown of how payments are made on ecommerce sites, such as ecommerce malls, using WeChat Pay:

• A QR code is displayed for the customer to scan at checkout.
  
• The customer opens WeChat Pay on their phone and scans the QR code to complete payment.
  
• The QR code is authenticated, and the customer is taken to a screen where they enter a six-digit passcode.
  
• By following the instructions on the screen and entering the passcode, the payment is completed.
  

Why should businesses adopt WeChat Pay?

There are a few key reasons for businesses in Japan to adopt WeChat Pay.

China’s high mobile payment adoption rate

According to the People’s Bank of China (PBOC), the penetration rate of mobile payments in China was 86% in 2023—the highest in the world. WeChat Pay stands out as one of China’s leading mobile payment brands. It is used not only for shopping, but also for transferring money between individuals and paying public utility bills, making it an indispensable payment method for everyday life in China.

Furthermore, according to a 2024 white paper from the Ministry of Internal Affairs and Communications, global mobile payment transaction volumes are expected to reach $4.34 trillion by 2025 and approximately $6.11 trillion by 2028. These figures show that mobile payments, using devices such as smartphones and tablets, are rapidly becoming widespread worldwide. This is likely due to increased activity in the mobile payment market, including the establishment of WeChat Pay in China and its adoption among the country’s very large population.

Access to cross-border ecommerce with China

If you own a business in Japan, it’s a good idea to deepen your understanding of cross-border ecommerce with China, in light of the popularity of WeChat Pay and other forms of mobile payment in China.

Customers in China regard products from Japan—such as electrical appliances and cosmetics—quite highly, and these products are very popular in cross-border ecommerce. According to a Ministry of Economy, Trade and Industry (METI) report, the market size of cross-border ecommerce in China is expected to reach $214.9 billion in 2025. For businesses in Japan that want to sell to customers in China, it makes sense to adopt the major payment methods commonly used in cross-border ecommerce with China, such as WeChat Pay, in order to meet the payment needs of local customers.

Access to tourists from China in Japan

As mentioned previously, the inbound tourism market in Japan is highly active and, consequently, the number of foreign visitors to Japan is increasing. Taking into account the payment needs of travelers from China, WeChat Pay is an indispensable payment method for businesses in Japan catering to tourists. Products in Japan are popular among customers in China, and there are many tourists from China who purchase a variety of products—both low-priced and expensive items—in Japan during their trips to bring back to their home country.

Businesses in Japan should consider integrating WeChat Pay as one of their payment methods, both on the basis of the size of the mobile payment market (which includes WeChat Pay) and as a way to accommodate cross-border ecommerce and tourists from China.

How secure is WeChat Pay?

WeChat Pay implements multi-layered security measures to ensure user safety.

• Advanced encryption technology: During data transmission and storage, Advanced Encryption Standard (AES)-compliant encryption technology is used to protect user personal information and transaction data.
  
• Global support: WeChat Pay is compliant with international security standards, such as the Payment Card Industry Data Security Standard (PCI DSS), for operation in China and other regions. All communication information is also protected by Secure Sockets Layer (SSL), preventing data theft by malicious third parties.
  
• Multi-factor authentication: WeChat Pay has thorough identity verification measures, including passwords specifically for payments, as well as biometric authentication using the customer’s fingerprint and face.
  
• Regular security updates: Regular testing and evaluation is performed to prevent malfunctions and other problems, and to improve security.
  
• Fraud detection: WeChat Pay has real-time monitoring and detection of suspicious transactions using algorithms designed to prevent unauthorized access and fraud.
  

How to adopt WeChat Pay with a payment processor

When integrating WeChat Pay into your payment environment, it’s recommended that you work with a payment processor. By working with a payment processing service, you can delegate the various tasks involved in implementing a new payment method while also taking advantage of the systems they provide. This can help streamline your operations by centralizing sales management, customer acquisition, and other key metrics.

Here’s how the process works:

• Apply for the payment processor’s services.
  
• Complete the payment processor’s screening process.
  
• Upon approval, follow the payment processor’s initial setup instructions.
  
• Run a test to make sure payments work smoothly.
  
• Begin accepting payments via WeChat Pay.
  

Advantages of WeChat Pay

Here are some advantages businesses might enjoy when accepting payment through WeChat Pay.

Quick payments

By using WeChat Pay, a business doesn’t need to handle cash, which allows payments to be completed more quickly. This tends to result in improved customer satisfaction. Further, WeChat Pay can improve the flow of a business, reducing congestion in the store and lowering the risk of mistakes, such as giving customers the wrong amount of change.

More customers from China

Although opportunities to use WeChat Pay are increasing in Japan, it is still not possible to use it for all purchases. Introducing WeChat Pay can help differentiate a business from competitors, especially for stores located near tourist spots that attract a large number of visitors from China.

Wider base of repeat customers

WeChat Pay lets customers follow the official WeChat account of any stores they’ve made purchases from. Shoppers who follow a store receive information about sales and promotions, making it easier for the store to retain them as repeat customers. Followers can also spread information about promotions, so the store can reach a larger audience.

Disadvantages of WeChat Pay

There are a few disadvantages to adopting WeChat Pay.

Customers must be Chinese citizens

Although WeChat Pay can be used in Japan, its use is limited to Chinese citizens. Users in Japan who register for WeChat Pay are only able to use it when visiting China, such as on business trips. That means WeChat Pay might not be that useful for businesses located outside of prominent tourist areas or that otherwise don’t have a lot of customers from China.

Subject to policy changes

In China, the internet is strictly regulated and operates under the control of the government. If policies change, it could become harder for businesses in Japan to adopt WeChat Pay. Or, there could be restrictions on the use of certain services offered by WeChat Pay.

It’s possible for access to suddenly be cut off, so businesses adopting WeChat Pay should pay close attention to developments in China’s economy and politics on a daily basis.

Examples of WeChat Pay use in Japan

Here, we’ll look at a few kinds of businesses that have successfully adopted WeChat Pay in Japan.

Drugstores

WeChat Pay has been introduced at many drugstores in Japan. Drugstores sell pharmaceuticals and medicated products, cosmetics, daily necessities, snacks, alcoholic beverages, and other items. Many drugstores have also begun selling fresh foods, such as vegetables and meat. Drugstores in Japan are in high demand among tourists from China, and it’s common to see tourists purchasing large quantities of cosmetics and medicines at drugstores in city centers.

Drugstore chains in Japan have been working to increase sales and expand their businesses by offering customers a wide range of payment methods, including WeChat Pay.

• Examples: Sugi Pharmacy, Cocokara Fine, Matsumoto Kiyoshi
  

Convenience stores

WeChat Pay is also available at major convenience stores in Japan. These stores, which play an indispensable role in the retail landscape in Japan, are popular among tourists. This is largely due to their excellent quality, wide selection of products, and high level of convenience. In response to inbound tourism demand, there has also been a recent increase in the number of convenience stores selling souvenirs.

Convenience stores provide a sense of accessibility and security due to their convenient locations, simple and affordable food, and reliable inventory of products travelers might have forgotten to pack. Convenience stores that accept WeChat Pay are likely to see an increased number of tourists from China visiting their businesses, as these tourists are able to quickly purchase the items they need, even when in a hurry.

• Examples: Lawson, 7-Eleven, FamilyMart
  

In addition to major drugstores and convenience stores responding flexibly to the demand for WeChat Pay, this payment method can also now be found at electronics retailers, such as Bic Camera, and apparel retailers, such as Uniqlo. The adoption of WeChat Pay across various types of businesses shows that it is becoming increasingly utilized in Japan.

Alternatives to WeChat Pay

In addition to WeChat Pay, there are other ways to accommodate Chinese customers. Here are the major payment methods used in China:

• Alipay
  
• UnionPay
  

Alipay is considered one of the leading cashless payment methods alongside WeChat Pay. UnionPay, meanwhile, is the most popular payment brand in China.

Meeting customer needs with WeChat Pay

By offering a wide range of payment methods, you can provide customers with a more convenient shopping experience. This can, in turn, improve customer satisfaction and boost your rate of repeat customers.

There are various cashless payment methods available. The payment methods you choose to adopt will depend upon the unique needs of your business and your customer base. WeChat Pay can be used by Chinese citizens in both China and Japan, as well as by Japanese citizens visiting China. Businesses should carefully consider whether WeChat Pay is necessary for their business. It’s a good idea to look into how it will impact sales, if at all, before deciding to adopt it. If you’re looking to implement multiple payment methods at once—including WeChat Pay—it can be reassuring to work with a payment processor that offers robust support, such as sales tracking and purchase trend analysis.

Stripe offers a wide range of tools and features to help streamline daily payment operations, including the integration of various cashless payment methods, such as WeChat Pay, as well as information processing and revenue management. For example, Stripe Payments can flexibly support mobile payments, allowing you to build a payment environment tailored to suit your business style without the need to develop your own system. It also has high-level security measures that prioritize safety, allowing you to provide customers with a secure shopping experience.

By using Stripe, you can simplify the payment process, reduce operating costs, and enjoy many other benefits. Plus, integrating multiple payment methods will enhance the overall convenience of your services and can increase sales.