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Walmart (WMT) Drops Alipay, Picks Up WeChat Pay: Here's Why
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It seems like Walmart Inc. (WMT - Free Report) is adding a fresh leaf to its growth story every day in a bid to bolster business and enrich consumers’ shopping experience to stay firm amid the intense retail competition. Incidentally, news surfaced that the big box retailer clinched a deal with Tencent Holdings Limited (TCEHY - Free Report) to accept the latter’s WeChat Pay as a mode of payment.
Acceptance of China’s popular WeChat Pay method of payment is likely to enhance customers’ convenience and strengthen Walmart’s business. Subsequently, the supermarket giant discontinued Alibaba’s Alipay payment method across all stores in the Western parts of China including places like Sichuan, Yunnan and Gansu.
Walmart, which started using China’s leading e-commerce player’s Alipay back in 2015, shook China’s retail space with this switch. Notably, Alipay and WeChat Pay are the top-two payment methods used by Chinese e-commerce shoppers, with the former currently ahead in the game. Sources suggested that dropping Alipay and picking WeChat pay will enhance Tencent Holdings’ position in its payments war with Alibaba.
If Alibaba is China’s number one e-commerce player, Tencent Holdings dominates the social media space, being the largest stake-holder in China’s second largest online retailer – JD.com. Coming back to Walmart, which commands the third-largest stake in JD.com, the company took this decision only to enhance consumers’ experience and drive business. In fact, sources revealed that the largest U.S. retailer remains focused on entering into alliances to offer various payment solutions with increased benefits.
Walmart’s focus on developing convenient payment methods is well reflected by its Walmart Pay mobile payment system, which is supported by any smartphone that can download the app. On the contrary, mobile payment options by Apple (AAPL - Free Report) , Samsung and Android are restricted to specific devices only. These efforts by Walmart form part of the its uncountable strategies to grow its e-commerce business to counter the growing dominance of Amazon (AMZN - Free Report) .
Well, Walmart is trying every means to evolve with the changing consumer environment to compete with brick-and-mortar rivals and e-commerce king Amazon. This is evident from its transition from Wal-Mart Stores to Walmart — in a bid to officially emerge an omni-channel retailer. In this regard, the company has been taking several e-commerce initiatives, including buyouts, alliances, and improved delivery and payment systems.
Walmart’s recent deal with Rakuten; buyouts of ShoeBuy, Moosejaw, Bonobos, ModCloth and Jet.com, and deal with Lord and Taylor underscore its quest to build an impressive digital brand portfolio. The company’s Walmart Pay mobile payment system, Mobile Express Returns program and efforts to enhance checkout process further highlight its focus on accelerating online business and making shopping easier and faster. Apart from this, Walmart is making aggressive efforts to expand in the booming online grocery space, which was a major contributor to its e-commerce sales in the third quarter.
Such strategies have been driving this supermarket giant, which has surged 25.3% in a year, surpassing the industry’s rise of 21.4%. We believe that with such robust endeavors rolled up in its sleeve, Walmart is likely to keep its stellar record intact. Also, with strength across both stores and e-commerce, the Zacks Rank #3 (Hold) company is likely to remain well-placed in the retail space dominated by Amazon. You can see the complete list of today’s Zacks #1 Rank stocks (Strong Buy) here.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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Walmart (WMT) Drops Alipay, Picks Up WeChat Pay: Here's Why
It seems like Walmart Inc. (WMT - Free Report) is adding a fresh leaf to its growth story every day in a bid to bolster business and enrich consumers’ shopping experience to stay firm amid the intense retail competition. Incidentally, news surfaced that the big box retailer clinched a deal with Tencent Holdings Limited (TCEHY - Free Report) to accept the latter’s WeChat Pay as a mode of payment.
Acceptance of China’s popular WeChat Pay method of payment is likely to enhance customers’ convenience and strengthen Walmart’s business. Subsequently, the supermarket giant discontinued Alibaba’s Alipay payment method across all stores in the Western parts of China including places like Sichuan, Yunnan and Gansu.
Walmart, which started using China’s leading e-commerce player’s Alipay back in 2015, shook China’s retail space with this switch. Notably, Alipay and WeChat Pay are the top-two payment methods used by Chinese e-commerce shoppers, with the former currently ahead in the game. Sources suggested that dropping Alipay and picking WeChat pay will enhance Tencent Holdings’ position in its payments war with Alibaba.
If Alibaba is China’s number one e-commerce player, Tencent Holdings dominates the social media space, being the largest stake-holder in China’s second largest online retailer – JD.com. Coming back to Walmart, which commands the third-largest stake in JD.com, the company took this decision only to enhance consumers’ experience and drive business. In fact, sources revealed that the largest U.S. retailer remains focused on entering into alliances to offer various payment solutions with increased benefits.
Walmart’s focus on developing convenient payment methods is well reflected by its Walmart Pay mobile payment system, which is supported by any smartphone that can download the app. On the contrary, mobile payment options by Apple (AAPL - Free Report) , Samsung and Android are restricted to specific devices only. These efforts by Walmart form part of the its uncountable strategies to grow its e-commerce business to counter the growing dominance of Amazon (AMZN - Free Report) .
Well, Walmart is trying every means to evolve with the changing consumer environment to compete with brick-and-mortar rivals and e-commerce king Amazon. This is evident from its transition from Wal-Mart Stores to Walmart — in a bid to officially emerge an omni-channel retailer. In this regard, the company has been taking several e-commerce initiatives, including buyouts, alliances, and improved delivery and payment systems.
Walmart’s recent deal with Rakuten; buyouts of ShoeBuy, Moosejaw, Bonobos, ModCloth and Jet.com, and deal with Lord and Taylor underscore its quest to build an impressive digital brand portfolio. The company’s Walmart Pay mobile payment system, Mobile Express Returns program and efforts to enhance checkout process further highlight its focus on accelerating online business and making shopping easier and faster. Apart from this, Walmart is making aggressive efforts to expand in the booming online grocery space, which was a major contributor to its e-commerce sales in the third quarter.
Such strategies have been driving this supermarket giant, which has surged 25.3% in a year, surpassing the industry’s rise of 21.4%. We believe that with such robust endeavors rolled up in its sleeve, Walmart is likely to keep its stellar record intact. Also, with strength across both stores and e-commerce, the Zacks Rank #3 (Hold) company is likely to remain well-placed in the retail space dominated by Amazon. You can see the complete list of today’s Zacks #1 Rank stocks (Strong Buy) here.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>