Tencent to Cut Commissions on WeChat Payment for Micro, Small Firms

Chinese technology giant Tencent (0700: HK) said on Thursday that it will cut transaction fees for micro and small enterprises using WeChat payment by 10%.

Effective from September 1,  2021 to September 30, 2024, this policy will benefit micro- and small-sized or self-owned businesses that meet the standards released by China’s Ministry of Industry and Information Technology.

Individual users will also enjoy fee remissions while withdrawing money from WeChat payment accounts, the company noted in its statement.

This move is in response to a government initiative calling on platform companies to cap commissions for micro and small enterprises to lower their operating costs after the pandemic posed a threat to the real economy.

Financial experts observe that this policy will not undermine common users’ experience when scanning the QR code or affect the development of the industry.

TenPay’s rival Alipay, run by Alibaba (9988: HK), has already announced a 10% reduction on payment fees for micro and small merchants in July 2021.

This wave of regulatory tightening also targets internet giants that host catering businesses, with food delivery platforms like Meituan (3690: HK) and Ele.me (Chinese: 饿了么) bearing the brunt and lowering their take rates for merchants who face operational difficulties under the influence of COVID-19.