Online Pay Giants Alipay, WeChat Pay Shun Digital Currency
The two largest mobile wallets in China said they will block digital currency transactions following PayPal's example.
Mobile wallets Alipay and WeChat Pay announced on Thursday they do not support transactions related to cryptocurrencies.
Alipay, backed by Alibaba Group Holding Ltd. (NYSE: BABA), said on its official Weibo account that it will block all transaction involved with digital currency.
"Merchants involved in digital currency transactions will be resolutely blocked. As for individual accounts, we will restrict suspicious activity and even permanently disable cryptocurrency payments," Alipay's Safety Center wrote.
Another Chinese mobile payment platform, WeChat Pay, operated by tech giant Tencent Holdings Ltd. (HKEX: 0700), announced that it hasn't supported any type of digital currency transactions, nor has it been open to merchants with cryptocurrency payments, as reported by local news media Yicai.
"We will resolutely protect the legitimate rights and interests of customers, prevent and control financial crimes, and maintain the calmness of financial market," WeChat Pay said Thursday following Alipay's statement, as cited by Yicai.
Since 2013, Alipay has been the world's largest mobile payment platform. Its U.S. rival PayPal Holdings Inc. reportedly withdrew earlier this month from the Libra Association, set up by Facebook Inc. to be a global network for digital currency, as reported by the Wall Street Journal.