Tencent Holdings Ltd., the owner of the Tenpay online payment platform, has reached an agreement with American Express Co. to offer Tenpay users an ability to shop with retailers outside of Mainland China, the firm announced in early October.
According to a statement issued by China-based Tencent, the deal will allow its users in China to buy goods from US and UK-based online retailers through Globalshop, a global ecommerce and shipping service.
The cross-border payment deal is the first time Amex has worked with any third party online payments provider in China, according to the statement, and it expects the deal will open up markets for both companies.
Globalshop also provides online shopping services through various third parties in Latin America and Eastern Europe.
Meng Zhang, analyst with Beijing-based research firm Analysys International, tells PaymentsSource that the deal is expected to significantly expand shopping options for current Tenpay users.
“The cross-border payments deal is also a way for Tencent to increase its share in China’s growing online payments market,” Zhang says. According to data from Beijing-based research firm Analysys International, Alipay, the Alibaba Group's payment platform, commands 45.5% of the market, followed by Tenpay, with a 21.2% market share.
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