CX Daily: Alipay and WeChat Pay’s Smaller Peers Struggle Amid New Crackdown

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In Depth: Alipay and WeChat Pay’s smaller peers struggle amid new crackdown

As small nonbank payment service providers (PSPs) struggled to compete with giants Alipay and WeChat Pay, they became heavily dependent on a shady practice known as “code stacking” to bolster their profits. But a regulatory campaign to crack down on wrongdoing in the industry with more-stringent rules has put a stop to the scheme, and forced these PSPs to find new business models that are both compliant and money-making.