DCEP is likely to be integrated with AliPay and WeChat Pay. Beijing is not looking to replace Alipay and WeChat Pay with the DCEP. Rather, Alipay and WeChat Pay will likely be integrated with the DCEP, cementing their positions in the digital finance space.
Ant Financial and Tencent the parent companies of the 2 payment platform, have a long standing cooperation with the government. The companies digital banks is also found to have been working closely with China’s traditional banks in the lending space.
It is unclear yet if the PBOC will distribute DCEP through Alipay or WeChat Pay directly, but both platforms will support a DCEP wallet. With the ubiquity of Alipay and WeChat Pay use, consumers may not see much of a difference as they will merely move from the current ‘digitized’ currency to a fully digital one.
Evidently, as the DCEP starts replacing cash transactions, Alipay and WeChat Pay will only become stronger as the payment channels of choice. China did start as the world’s biggest fintech sandbox, but the regulators have reigned in the industry and are now partnered closely with the two companies, and all signs are that Alipay and WeChat Pay will be a critical part of that DCEP vision.
[image: FOMO Pay]
