As the Chinese payments market remains largely closed to the west, foreign payments companies are seeking out ways to work with local partners to get a piece of Chinese consumer spending. An increasingly common practice is to work with local partners to allow consumers make purchases overseas.
AmEx is the latest example of this practice, signing an agreement with Tencent –the parent company of the No. 2 online payment service provider in China.
The agreement will allow users of Tencent’s Tenpay online payment service to make purchases outside China.
Tencent, China’s biggest Internet company by revenue, faces competition from Alibaba Group Holding Ltd.’s Alipay and Baidu Inc.’s Baifubao in processing online payments for consumers in China, the world’s fastest-growing major economy. American Express said this month it is seeking to expand in emerging markets through acquisitions.
The partnership with Tencent will provide a “strong” boost to American Express’s operations in China, Dave Keung, vice president of the New York-based company’s global network division, said in the statement.
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