Visa extends its partnership with Tencent Financial Technology

The collaboration extends Visa Direct's network to over one billion Weixin users, tapping into one of the world's largest inbound remittance markets. 

According to the official press release, digital wallets, a rapidly growing financial instrument, are anticipated to surpass five billion users globally by 2026. Notably, these wallets streamline financial transactions without necessitating the sharing of account or card details, as users need only provide their wallet ID or registered phone number. This feature improves the convenience and security of transactions, particularly in cross-border scenarios. 

The same source reveals that, in 2021, cross-border transfers through digital wallets witnessed a 48% growth, reaching a total of USD 16 billion. Officials from Visa Greater China highlighted the significance of digital wallets as receiving endpoints for cross-border remittances, particularly in prominent markets like Greater China, India, the Philippines, and Bangladesh. Digital wallets play an important part in fostering financial inclusion, catering to populations with limited access to traditional banking services.  

This collaboration builds on Visa's existing partnerships with Thunes and TerraPay, expanding Visa Direct's reach to over 8.5 billion endpoints, encompassing cards, accounts, and digital wallets. Visa Direct serves as a unified gateway, streamlining global fund transfers to eligible cards, bank accounts, and wallets worldwide. 

Officials from Tencent Financial Technology described the partnership as a step forward in shaping new global payment networks. By leveraging Visa Direct's network of financial institutions, Tencent aims to seamlessly connect customers from these institutions to Weixin users in eligible markets. It's also worth noting that this collaboration has the potential to facilitate compliance requirements, streamline processes for partners, and bridge gaps between diverse financial ecosystems, making international money transfers as straightforward as sending a message. 

Tenpay Global, Tencent Financial Technology's cross-border payment business, has already established partnerships with over 30 leading global remittance institutions. The goal is to allow remittance users in more than 60 countries and territories to connect with Weixin users. Leveraging standard APIs and robust global fund processing capabilities, Tenpay Global's remittance solution allows qualified Weixin users in mainland China to receive remittances directly to their Weixin Wallet balance.

Other developments from Tencent

In November 2023, Primer, a unified infrastructure provider for global payments and commerce, has secured an investment from Tencent. 

Tencent's investment was intended to bolster Primer's market position, with a specific focus on expanding its product portfolio and market reach. This strategic move aligned with Primer's overall growth strategy, supported by a diverse global portfolio of investors.  

As outlined in the company's press release, Primer was looking to redefine the infrastructure landscape by seamlessly integrating payment and commerce services. The platform offers a range of tools, including payment recovery, success, and artificial intelligence tools.