Digital yuan app supports WeChat Pay now
Published: Mar 06, 2023 09:12 PM
The mascot of digital yuan Photo: VCG

The mascot of digital yuan Photo: VCG

China's digital currency has further expanded its application scenarios, with the digital yuan app being linked to the broadly-used WeChat Pay. 

The Global Times learned that the payment platform of the digital yuan app now support both Alipay and WeChat Pay. Users can make payments with their digital yuan wallets in WeChat's mini-programs, and the feature will be available in more scenarios.

After activating the function for digital yuan payments, the Global Times found that the single transaction limit is currently set at 2,000 yuan ($289) and the daily limit is set at 5,000 yuan for an activated account.

Analysts noted that cooperation between digital yuan and third-party payment platforms is a win-win for both sides. Digital yuan's application scenarios can expand through payment platforms, which can also enhance payment safety and data privacy for users. 

Even though most of China's third-party payment platforms operate in accordance with regulations, risks related to asset protection and data privacy still exist under extreme conditions, Wang Peng, a research fellow at the Beijing Academy of Social Sciences, told the Global Times on Monday. 

The risks can be effectively averted by using digital yuan, which will also protect users' data privacy, the same as using the actual currency, Wang said. 

Third-party payment platforms can incorporate digital yuan to solve users' specific concerns, said Wang, adding that digital yuan can continuously develop application scenarios and cultivate users' habits. 

Alipay was linked to the digital yuan app in December 2022, and users can make payments with digital yuan while using Alibaba's Taobao and Eleme services.

China has been promoting the use and expansion of digital yuan since the launch of the trials. 

On February 28, Ningbo city in East China's Zhejiang Province became the first city in the province to support digital yuan for paying highway tolls, with all local toll stations accepting digital yuan payment. 

Shenzhen in South China's Guangdong Province officially activated the use of the nation's first self-service card-issuing machine for residents from the Hong Kong Special Administrative Region coming to Shenzhen to effectively and safely obtain digital yuan, the Shanghai Securities News reported. 

As of February 26, a total of 625 Hong Kong residents had activated the payment service. Hong Kong residents who use the service can enjoy 20 percent off at 1,400 merchants in Luohu district. The launch of the machine integrates the use of digital yuan in the Guangdong-Hong Kong-Macao Greater Bay Area, while exploring the expansion of digital yuan in cross-boundary payments. 

The trial programs of digital yuan covered a total of 15 provinces and cities. By the end of 2022, a total of 82.7 million digital yuan wallets had been activated, with 600 million transactions topping 635.86 billion yuan, reported. 

The report added that 11.2 million merchants nationwide supported the use of digital yuan at the end of last year, recording a year-on-year growth of 209 percent. 

Wang expected the use of digital yuan to expand to more market entities, be incorporated into various businesses and covering higher amount of payments. 

Global Times