Home Banking TikTok’s Chinese version Douyin adds payments app – FinTech Futures

TikTok’s Chinese version Douyin adds payments app – FinTech Futures

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Douyin, the Chinese version of popular short form video app, TikTok, just added online payments to the app.

Reuters reports that the company is busy expanding into e-commerce, as Douyin Pay (Douyin Zhifu) has been added to the app’s options.

Other payment tools on Douyin include WeChat Pay and Alipay.

Users can, for instance, receive a cash-filled electronic red packet from a Douyin campaign and deposit that cash to their bank accounts.

Douyin Pay (Douyin Zhifu) has been added to the app’s options.

“The set-up of Douyin Pay is to supplement the existing major payment options, and to ultimately enhance user experience on Douyin,” a Douyin spokesperson tells Reuters.

Brands and retailers can already redirect users to a product page by including a link in a video. Now, users of the app can checkout and pay for goods using Douyin Pay instead of other options.

Douyin’s parent, ByteDance, the Chinese start-up behind TikTok and other popular social networking apps reportedly generated $5.6 billion in revenue in the first three months of 2020.

Its first-quarter figure represents a 130% growth in revenue year-over-year, according to Reuters, which makes the move towards payments seems like a natural progression for the company to want in on the action.

ByteDance snapped up a payments licence by acquiring a third-party payments firm.

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Last September, a company controlled by ByteDance founder, Zhang Yiming, bought out a payments solution provider called, Wuhan Hezhong Yibao Technology. The licence allows Douyin, Toutiao and other ByteDance services to offer payment features.

Other internet giants, such as e-commerce giant JD.com and food delivery service Meituan, have also established their own payment methods.

The country’s mobile banking market logged some CNH 56.2 trillion ($8 trillion) worth of transactions in the last three months of 2019, according to domestic consultancy Analysys.

It estimates Alipay commands 55% of the market and that Tencent’s fintech business, most of which is WeChat Pay, has 39%.

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