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Tencent enables blockchain invoicing for transport in Shenzhen, China

shenzhen metro

The tax bureau in Shenzhen worked closely with Tencent Financial Technology to roll out blockchain-based invoicing for transport systems in Shenzhen, including subways, taxis and airport shuttles. The first blockchain-based invoice was issued for the metro departing from Shenzhen Futian station on the 18th of March 2018. Tencent is the company behind WeChat, China’s leading chat app with over one billion active users.

Passengers can view a blockchain-based invoice after they’ve completed their trip. Once the transaction is complete, the platform will automatically generate an electronic invoice which can be found within the WeChat or Shenzhen Metro mobile apps.

Cai Yige, general manager of Tencent smart transport, commented that the QR code for transport aims to provide a better user experience and improve efficiency. And the blockchain-system makes it easier for users to get an invoice. Previously travelers had to visit Shenzhen Metro customer services to get an invoice, with roughly 160,000 paper invoices issued daily. It also cuts the cost of printing by 400,000 yuan ($60,000) per year.

Additionally, by using blockchain technology invoices are harder to tamper with, which can help tax authorities trace its source and authenticity.

Since May 2018, QR codes have been used for payment in the subway with QR code scanners installed at all the entry barriers in the Shenzhen Metro. From May to November, more than 11 million people used the service.

Tencent has recently published numbers for blockchain-based invoices in the Shenzhen area. The system is installed in more than 1,000 stores, with more than one million invoices issued amounting to more than 1.33 billion yuan ($200 million).

The company is currently using blockchain in different areas, such as invoices, supply chain finance, healthcare, retail, legal documentation and video games. Another invoicing example was its work with China Merchants Bank.

Image Copyright: LinaMo / BigStock Photo