Tencent Holdings Ltd, the Chinese social media behemoth, said in a statement on Thursday that it will decrease transaction costs for small and medium-sized merchants using its WeChat payments system by 10%.

The cutbacks will take effect on September 1, 2021, and will last until September 30, 2024, according to the business.

Merchants must meet China’s Ministry of Industry and Information Technology’s classification guidelines for small and medium-sized firms in order to qualify for the decrease.

According to the announcement, the Tencent corporation would also lower fees for money withdrawals from consumers’ bank accounts.

This regulation follows similar actions made by Chinese IT businesses in the last week.

Ele.me, the food delivery service backed by e-commerce behemoth Alibaba Group Holding Ltd, announced on Wednesday that it would decrease its commission rates for merchants in COVID-19-affected districts.

Prior to that, rival delivery giant Meituan said that it will lower its commission.

The revisions follow a surge of regulatory tightening across a wide range of industries in China, with the consumer internet industry a regular target.

In order to support a faster recovery from the pandemic in the services sector, regulators released recommendations last month for online food delivery platforms to slash service fees to help lower operational costs for catering enterprises.

By Bizemag Media

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