Just weeks after Beijing launched a digital yuan pilot in Hong Kong
Chinese regulators asked Tencent Holdings to reduce WeChat's mobile payment market share.
Tencent Holdings is facing pressure from Chinese regulators as Beijing asked the tech giant to reduce the mobile payment market share of its WeChat app.
The request mainly targets the market share of face-to-face payments made via QR codes, rather than online shopping.
While a specific numerical target for WeChat Pay to cut market share has not yet been determined, a person close to the company told Nikkei that "WeChat's goal is not to expand the number of users, and it is very cautious about the potential risks of being too large.
Although there are about 185 non-bank payment institutions, China's mobile payment ecosystem is currently dominated by WeChat Pay and Ant Group's Alipay.
While the exact reasons behind the latest move are unclear, regulatory pressure coincides with Beijing's efforts to promote the adoption of the state-backed digital currency, the digital yuan, also known as the e-yuan.
Since its pilot in 2020, the digital yuan has struggled to gain significant development, and some officials are reluctant to deposit funds in the e-yuan due to concerns about lack of interest and limited availability.
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