Tencent Holdings Ltd, the China-based global technology and entertainment conglomerate, plans to reduce transaction fees for small- to medium-sized businesses (SMBs) using the WeChat payments network, Reuters reported.
The 10% price drop is expected to be retroactive from Sept. 1 of last year through Sept. 30, 2024, the company added.
To qualify for the discount, companies must be classified as an SMB by China’s Ministry of Industry and Information Technology. The government agency of the People’s Republic of China is responsible for regulation and development of a wide swath of sectors.
Tencent added that it also will lower fees on cash withdrawals from customers’ bank accounts.
The policy follows similar moves from Chinese tech companies. The changes come on the heels of regulatory tightening across industries in China.
Last month, Tencent denied a Bloomberg report that said the company was facing a major regulatory crackdown.
See also: Tencent Denies It Faces Chinese Regulatory Restrictions
The news outlet reported Zhang Jun, the company’s head of public relations, ridiculed a post by an anonymous Tencent employee that suggested the company was facing regulatory crackdown. Before it was removed, the post said new rules are being considered regarding violence in video games, player spending and concepts like anime and religion.
The firm issued an “unusually aggressive” response to the speculation, quoting Jun saying nothing was going on.
“Ask me next time, at least that’s more legit,” Zhang said on his semi-public WeChat feed, according to Bloomberg. “And I’m not afraid of going on record.”
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