Alibaba Group Holding is introducing Tencent’s WeChat Pay as a payment option on its Taobao and Tmall platforms, according to a Bloomberg report.
The move gives millions of users access to China’s most popular online payment method, WeChat Pay, marking a shift from Alibaba’s traditional reliance on its own Alipay service, created by affiliate Ant Group Co.
This development coincides with a slowing consumer market and the growing dominance of WeChat, which has evolved into a crucial e-commerce platform.
Alibaba’s decision also follows a prolonged regulatory crackdown aimed at reducing monopolistic practices in the tech sector.
Last week, authorities signaled easing pressure by clearing Alibaba of regulatory issues, suggesting renewed government support for the industry.
China’s tech giants have been dismantling barriers between their services since regulators intervened in 2020 to curb monopolistic behavior.
Tencent began allowing WeChat users to access rival platforms in 2022, while Alibaba introduced WeChat Pay on some services, such as its food delivery app Ele.me, in 2021.