Mobile payment platforms Alipay and WeChat Pay reported significant increases in transaction volumes during China’s five-day Labor Day holiday from May 1 to May 5, 2025.

Alipay, operated by Ant Group, announced that transactions and total spending by inbound travelers using its network of 13 e-wallets doubled compared to the same period last year.

The company cited updated tax refund and visa-free policies as factors contributing to this growth.

WeChat Pay, owned by Tencent Holdings, also reported a nearly threefold increase in foreign user transactions in mainland China during the first three days of the holiday.

For the entire five-day period, transaction volume from Hong Kong WeChat Pay users doubled year-on-year.

WeChat Pay transactions by Chinese tourists abroad increased by 37% compared to last year, according to Tencent.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ China’s fintech expansion reflects a decade-long mobile payment dominance

The holiday spending surge is part of a much larger digital payments transformation in China.

China’s mobile payment volume reached $12.8 trillion in a single year, dwarfing the US market’s $49.3 billion during the same period1.

This dominance started years ago. By 2017, China had 890 million mobile payment users, with transaction volumes doubling annually and reaching $17 trillion that year2.

Alipay and WeChat Pay’s commanding position (controlling over 90% of China’s mobile payment market) has enabled them to build comprehensive digital ecosystems that extend well beyond simple payments1.

The rapid adoption reflects how China essentially leapfrogged traditional banking systems, moving directly from cash to mobile payments, unlike Western markets where credit cards remain deeply entrenched3.

2️⃣ Policy changes are strategically driving China’s tourism economy

The doubled transaction volume mentioned in the news aligns with China’s recent policy shifts to boost inbound tourism.

Recent Ant Group developments