Tencent Holdings Ltd, the Chinese mainland's biggest Internet company by sales, is increasing its footprint outside the mainland by offering online payment services, amid similar approaches by competitors to cash in on overseas shopping.

The company has teamed up with Taiwan-based E.SUN Bank to provide an online payment service that enables mainland Internet users to buy products such as food and cosmetics from Taiwan's small and medium-sized enterprises.

In 2011, Tencent's online payment arm, Tenpay, started to cooperate with US credit-card issuer American Express Co on a similar service for its users to buy goods on websites outside the Chinese mainland. The efforts are aimed at fending off competition from rivals such as Alibaba Group Holding Ltd, which goes head-to-head with Tencent in e-commerce, online payment, and other areas.

"We are working on projects in Hong Kong and Taiwan and hope to sort out ways to provide online payment services outside the mainland and then reach out to more merchants," said Jim Lai, Tenpay's general manager.

Lai said mainland Internet users have spent more than 100 million yuan ($16.1 million) on overseas shopping websites with the service it offers with American Express since November.

Mainland users can now use their mobile phones to scan the "quick response" codes of Taiwan-made products and pay with Tenpay's service to have the products shipped directly to mainland addresses.

Around 200 Taiwan-based merchants currently support the service, and more will join, said E.SUN Bank President Joseph N.C. Huang.