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Sri Lanka’s national payment network, LankaPay, has launched cross-border QR payment acceptance via China’s Weixin Pay (WeChat Pay).
The integration allows inbound travellers to make payments at over 400,000 LANKAQR merchants across the island.
With Weixin Pay reportedly serving nearly 900 million monthly active users globally, the partnership aims to reduce friction at points of sale for Chinese tourists.
Sri Lanka Tourism Development Authority (SLTDA) Chairman Buddhika Hewawasam said the industry is preparing for a possible 30% to 40% decline in the European market due to global crises.
The initiative also seeks to direct tourism revenue into rural areas and reduce foreign exchange leakage. Currently, tourism revenue leakage exceeds 30%, largely because major hospitality providers rely on imported goods.
Hewawasam highlighted that rural vendors, such as craftspeople, bakeries and local produce sellers, could benefit from the ability to accept digital payments, according to the Daily Mirror.
For local businesses, the integration offers a cost-effective alternative to traditional payment methods.
LankaPay Chief Executive Officer Channa de Silva said:
Channa de Silva
“The Central Bank of Sri Lanka has capped the merchant discount rate for international QR transactions at 1.8%, presenting a significantly cheaper alternative to standard international credit card fees. The direct integration also eliminates the cumbersome and costly dual conversion process through the US dollar.”
He called on banks to educate merchants to ensure the system is fully used.
Weixin Pay Managing Director for Southeast Asia and North America Ben Yang said Sri Lanka is well-positioned to benefit from Chinese outbound tourism.
“The collaboration extends beyond basic payment processing; the objective is to connect with Chinese tourists, convert their engagement into seamless transactions, and grow Sri Lanka’s overall tourism revenue,”
he said.
Both parties plan joint campaigns to promote Sri Lankan travel experiences and local merchants to Chinese consumers.
Featured image credit: Edited by Fintech News Singapore, based on image by Harsha de Silva via LinkedIn
