Tencents wechat payment has been used by hundreds of millions of Chinese consumers as a substitute for bank cards or cash, the report said. Users can use the QR code generated by wechat to pay in the store or transfer money to friends, and can also use its technology to make online payment. Banning U.S. companies from using the app could put tech companies such as apple at risk of losing a large number of customers. Some experts said the ban could mean the smartphone maker would be required to remove wechat and wechat payments from its IOS store.
If you cant pay for Starbucks coffee on wechat, people wont drink it again, Gu Xinyu, an analyst at bocom international, commented on the extreme situation in which US brands are forbidden to use wechat payment
According to the report, Apples revenue in China exceeded $13 billion last year, but many consumers use wechat as the main means of communication and payment, so they may give up buying Apple phones without wechat.
U.S. companies will be busy getting their lawyers to figure out the impact, said Neil camplin, head of telecommunications, media and Technology (TMT) at mirabo securities. Wechat is not only an important channel for communication, but also an important channel for brands to reach consumers.
Trump has the potential to cut down the entire growth area of many companies, he said
Many U.S. companies are not isolating their Chinese operations, so many will be encouraged to comply with the ban, an expert said.
Experts say the wording of the executive order, which requires U.S. companies and citizens to stop doing business with wechat and tiktok within the next 45 days, suggests that it may cover different industries, affecting not only the operation of the two apps in the United States, but also the relationship between U.S. companies and China.
Given that the executive order covers any transactions, we expect the ban to be more extensive, said Jason hengford, a partner at the firm