Making its vision of a borderless payment network a reality

The fintech arm of China’s Tencent group, Tencent Financial Technology, has in recent years embarked on an ambitious journey to pioneer a global payment revolution. Termed the 1+1+1 model, this strategy rests upon the principles of open collaboration and interconnectivity, with the ultimate goal of building a secure, compliant and convenient digital corridor for cross-border payments around the world.

“Under the 1+1+1 model, we’re not only opening up our own ecosystem to facilitate international collaboration with China, but also maximising the capabilities of existing networks and lifestyle services platforms across various regions. This approach opens the door to a diversified, inclusive and borderless payment network,” said Mr Royal Chen, vice-president of Tencent Financial Technology.

A DETAILED ROADMAP FOR SUCCESS

At the core of this strategic blueprint is Weixin, a versatile application for messaging, social media and mobile payments. The first “1” in the model underscores Tencent’s commitment to connect global individuals and businesses to the Weixin ecosystem and share its knowledge of China’s payment infrastructure and technology. 

The aim, said Mr Chen, is to “leverage the group’s capabilities in technology and risk management to connect individuals and businesses globally, allowing consumers to enjoy seamless, secure and innovative fintech experiences”.

The next “1” is dedicated to Tencent’s vision of building a global payment network through partnerships with payment partners worldwide. The company has worked with over 30 global remittance institutions – such as Wise, Remitly and Panda Remit – to connect remittance users in more than 60 countries and regions with Weixin users. Tencent has also forged ties with global card giants such as Visa, Mastercard, JCB and Discover Global Network (including Diners Club) to enhance the digital payment experiences of international cardholders in China.

The final “1” refers to Tencent’s goal to connect and serve local lifestyle services platforms in various regions, spanning sectors including e-commerce, airline, travel and education, and bridge the gap in cross-border payments. Notably, Tencent has already established partnerships with e-commerce platforms in Southeast Asia, Latin America and North America to offer a one-stop cross-border payment service. 

A FEATHER IN TENCENT’S CAP

Tenpay Global, Tencent’s cross-border payment business that was unveiled at last year’s Singapore FinTech Festival, has embraced the innovative 1+1+1 model. It offers a suite of business and consumer cross-border payment solutions to cater to diverse customer needs, including a convenient remittance experience. 

Tenpay Global’s remittance solutions enable global fintech institutions to integrate with Weixin’s open ecosystem by leveraging its global fund-processing capabilities and standardising application programming interfaces. As a result, Weixin users in mainland China can now receive foreign remittances directly into their Weixin wallets.

Said Mr Chen: “With more Chinese users and companies going global, there’s a growing demand for cross-border payment services. Through our Weixin ecosystem and our collaborations with fintech partners, cross-border remittance is as easy as sending a message.” 

In recognition of its efforts in making remittance services more accessible and inclusive, Tenpay Global was named FinTech of the Year at the Asia FinTech Awards 2023.

MAKING STRIDES INTO THE FUTURE

For Tencent, the journey has only just begun. The Chinese conglomerate is committed to elevating the user experience across its lifestyle services and digital payments platforms by embracing innovative technologies. One such initiative involves the amplification of AI-powered monitoring and risk assessment capabilities to bolster security and safeguard users against fraud. 

The company also envisions expanding its presence in strategic markets to realise its goal of leading the charge towards an integrated global payment network. As a fintech hub and the regional headquarters for numerous global fintech institutions, Singapore is a key market for Tencent’s partnerships strategy. 

“Leveraging Singapore’s robust infrastructure and regulatory environment, Tencent’s fintech business aspires to connect China with the world, drive the development of cross-border payments and nurture a more inclusive financial landscape, both in Singapore and beyond,” said Mr Chen. 

Explore Tencent’s pioneering 1+1+1 model and find out how it is redefining global transactions.

Learn more about the future of finance at the Singapore FinTech Festival from Nov 15 to 17, 2023.