SHANGHAI: Chinese social media giant Tencent Holdings Ltd will reduce transaction fees for small and medium-sized merchants using its WeChat payments system by 10%, the company said in a statement on Thursday.

The reductions will apply beginning Sept. 1, 2021, and extend up to Sept. 30, 2024, the company added.

In order to qualify for the reduction, merchants must meet classification standards for small and medium-sized businesses by China's Ministry of Industry and Information Technology.

The company will also reduce fees on money withdrawals from users' bank accounts, according to the statement.

The policy follows similar moves from Chinese tech companies this past week.

On Wednesday, Ele.me, the food delivery service run by e-commerce giant Alibaba Group Holding Ltd, announced it would reduce its commission fees for merchants in areas affected by COVID-19.

Before that, rival delivery giant Meituan also said it would reduce its commission.

The changes broadly come after authorities launched a wave of regulatory tightening across a range of industries in China, with the consumer internet sector a frequent target.

Regulators last month issued guidance for online food delivery platforms to reduce service fees to help to lower operating costs for catering businesses, in order to promote a faster recovery from the pandemic in the services sector.