Alipay’s loneliest days: major institutions have opened WeChat payment through UnionPay

April 1 is the first day of the implementation of the Notice of the People's Bank of China on Issuing the Barcode Payment Business Specifications (Trial) (hereinafter referred to as the "Notice"). The Notice requires that when banking financial institutions and payment institutions carry out barcode payment business involving inter-bank transactions, they should go through the inter-bank clearing system of the People's Bank of China or clearing institutions with legal qualifications.

On April 1, relevant institutions have taken some actions. For example, Bank of Communications and China Everbright Bank have expressed their support.

In addition, China UnionPay has signed a cooperation agreement with Tenpay Payment Technology Co., Ltd. to officially launch WeChat payment barcode payment business cooperation. The system docking, joint debugging test and production verification have been completed, and all preparations are ready.

It is understood that as of now, many institutions including Lakala, Yinsheng, Tonglian, Bank of Communications, CITIC Bank, and Everbright Bank have opened WeChat payment services by connecting to UnionPay.

In January 2017, China UnionPay and JD Finance signed a strategic cooperation agreement in Beijing. According to the agreement, JD Finance's payment company, China Online Banking, will become a member institution of UnionPay and can carry out online and offline bank card acquiring business.

JD.com and UnionPay have a long history of cooperation. In addition to payment services, they also include blockchain landing trials. This time, with the "direct connection cut off", it is natural for the two companies to reach cooperation again.

Interestingly, just like last year when Alipay became the only third-party payment player among licensed institutions that was left out of the UnionPay payment acquiring system, this time, the progress of Alipay, which has not yet been connected to UnionPay and is "wandering outside the system", is also attracting attention.

Payment Encyclopedia reported that data provided by UnionPay showed that UnionPay's new generation of cardless business transfer and clearing platform has reached a cooperation consensus with hundreds of member institutions, including more than a dozen major payment institutions, of which more than 70 institutions have completed platform docking or are carrying out docking work.

All national commercial banks that have access to UnionPay's new generation of cardless quick payment platform have started supporting quick payment services for new users of acquiring institutions, and more than half are preparing systems and services for initiating payment services for existing users. The system production rate of more than 180 regional banks exceeds 85%.

What about Alipay? According to people close to Alipay, the two sides have had contact, but it is still unknown to what extent the contact has progressed.