AliPay vs WeChat Pay vs UnionPay: Your Chinese Payment Systems Guide in 2025

If you’re looking to grow your business in China, getting to grips with local digital payment systems is crucial. AliPay vs Wechat pay vs Union Pay is a confusing point for most non-Chinese people. In 2021, over 70% of China’s financial transactions were made through online payments. By 2022, the country had 904 million mobile payment users. These platforms are popular not just domestically but globally.

This is a quick Chinese payment systems guide to help you make decisions based on your business goals, then how to set up your platform of choice. Let’s make sure you get it right the first time with your choice of payment systems in China.

Alipay

If you’re setting up shop in China, Alipay is your go-to for digital payments, both online and offline. This platform boasts over a billion users and serves as the backbone of e-commerce transactions across the country.

Alipay has done a great job of expanding its services to include paying abroad, which has been great for tourist businesses. Alipay enables them to take direct payments from the increasing number of Chinese foreign travellers.. . This means you can start tapping into international markets while still navigating the regulatory landscape carefully.

Consumers like Alipay because it’s quick, secure, and universally accepted across countless merchants and services. For businesses, Alipay gives you insights into your customers’ habits through its advanced analytics.

WeChat Pay

If you are a foreign business looking to launch in China or targeting Chinese customers overseas, then you need WeChat Pay. It’s built right into WeChat, the app that almost everyone in China uses to chat, share, and shop. 

By 2019, WeChat Pay hit 1.1 billion users, making it incredibly popular. Just like Alipay, WeChat Pay lets you scan a QR code to make payments—straightforward and fast. The fact that this online wallet is integrated into WeChat minimises friction since users’ don’t have to leave their app of choice.

You can also use the WeChat app to see what’s resonating with your customers and adjust your offers on the fly so similarly to Alipay, WeChat has benefits for both you and your customers.

UnionPay

Your business can go global with China UnionPay, a digital payment platform accepted in over 180 countries and the top choice for Chinese tourists and international travellers from China. 

UnionPay, a bank card system, was established in 2002 by the State Council and the People’s Bank of China to provide a familiar payment service outside China, much like Visa and Mastercard.

Recently, UnionPay has stepped up its game to compete with other major players by introducing QR-code scanning for transactions and QuickPass, a one-touch payment feature similar to Apple Pay and Google Pay.

Comparing Chinese Payment Systems: What’s Best for Your Business?

Your most valuable decision when entering the Chinese market might just be choosing the right digital payment options. Alipay, WeChat Pay, and UnionPay each have their strengths, and the best choice depends on your specific business needs and customer base.

Fees and Costs: All three platforms charge transaction fees, but they vary. Alipay and WeChat Pay typically have lower fees for domestic transactions but can be higher for cross-border transactions, making them ideal for local operations. UnionPay, on the other hand, might be more cost-effective for international transactions due to its global reach and lower fees in that segment.

User Base: Alipay and WeChat Pay boast enormous user bases predominantly in mainland China, with Alipay leading in the e-commerce sector and WeChat Pay favoured for social media and communication-based transactions. UnionPay’s user base is more varied internationally, making it a good option if your business targets global shoppers or the tourist market.

International Use: UnionPay is the winner for international acceptance, available in over 180 countries. Alipay and WeChat Pay are catching up but are still primarily used within China and some parts of Asia. If your business model involves international customers, UnionPay should be a consideration.

Business Application: If you’re integrating a payment system into an app or website primarily targeted at Chinese users, WeChat Pay offers deep integration with social features, enhancing customer interaction directly through WeChat. Alipay is best for pure e-commerce environments with its strong presence in online shopping. UnionPay is your go-to for broader international reach.

China Payment Methods Integration

Your next step is to integrate Alipay, WeChat Pay, or UnionPay into your business, a move that can significantly boost your market presence in China. Here’s how you can do this efficiently and compliantly.

Alipay Integration

1. Set Up an Alipay Merchant Account: Register through the Alipay website. You’ll need to provide business documentation and undergo verification.
2. Technical Setup: Implement Alipay’s API on your website or app. They offer SDKs for mobile and plugins for popular e-commerce platforms.
3. Testing and Launch: Before going live, test the payment process thoroughly to ensure everything works seamlessly.

WeChat Pay Integration

1. Register for a WeChat Official Account: This allows you to access WeChat’s merchant services.
2. Integration: Like Alipay, WeChat provides APIs and SDKs. Choose the one that fits your platform and integrate.
3. Compliance Check: Ensure your setup adheres to WeChat’s policies, especially around data privacy and user interaction.

UnionPay Integration

1. Merchant Registration: Apply through UnionPay’s global website, which may involve more stringent checks due to international regulations.
2. Implementation: Integrate UnionPay’s payment gateway using their provided APIs, available for various e-commerce systems.
3. Cross-Border Compliance: Pay special attention to cross-border transaction rules, which might require additional steps or documentation.

Embrace China’s Digital Payment Ecosystem for Business Growth

Handling how digital payments in China work and keeping up with Chinese regulations can get tricky. That’s why teaming up with experts who know the ins and outs can make a big difference. If you’re ready to move forward or need some advice on navigating China’s digital ecosystem, check out our services page or contact us for a commitment-free phone call. We’re here to help you smooth out the process and get your business ready to succeed in China.