China's Biggest Messaging App WeChat Is More Than Just an App

WeChat is one of the world’s fastest-growing social apps that innovates new ways to connect, communicate and share. As of Q3, WeChat now has over 650 million monthly active users and is growing at a rate of 6% to 9% per quarter. WeChat, owned by Tencent Holdings Limited, brings together messaging, social communication and games all within one easy-to-use app.

Source: Statista

This statistic gives information on the most popular global mobile messenger apps as of August 2015, based on number of monthly active users. As of August, 205 million users were accessing the LINE messenger on a monthly basis.

As we can see in the above chart, WeChat stands in the fourth position as the most popular global mobile messenger apps as of August 2015, based on number of monthly active users (in millions).

Recently, Western Union and WeChat, China’s biggest messaging app, announced an agreement which enables WeChat users in the US to send money cross-border to 200 countries and territories via the company’s WU Connect platform.

In the article, we talk about the WeChat wallet’s role in the company’s revenue and app usage.

WeChat Wallet:

Tencent’s WeChat allows users to transfer money to their WeChat contacts. Users can deposit money from their bank accounts into the My Wallet feature. The advancement in the app allows for purchases within the app, and also allows customers to hail and pay for taxi service. The wallet can also be used for buying movie tickets or even giving to charity.

WeChat Wallet has a significant role within WeChat’s business model because it lets users to quickly insert their payments credentials which they use throughout all of WeChat, including the official accounts and mobile payments.

At least one in five active WeChat users are set up for WeChat Payments, a process that begins in the Wallet menu by linking a banking or credit card to the user account. This gives users the ability to make payments within wallet as well as purchase from official accounts and give money to friends which has a huge impact on sales that take place within WeChat.

WeChat is moving from online to offline-based payments. WeChat’s mobile payment system is QR code-based and works much like the QR code-based mobile payment providers in the US. The reason WeChat has moved into brick-and-mortar mobile payments is because it will increase the amount of users who enter their bank information within the app which leads them to using all the other features within the wallet.

WeChat Wallets have passes stored in them and can take advantage of iBeacon technology. Partnering with Bright Beacons, official accounts within WeChat can use iBeacon technology to give customers coupons, vouchers and membership cards, all within the WeChat Wallet.

WeChat gives businesses a strategic advantage because they don’t have to get consumers to download their app in order to receive their beacon signals. Instead, the messages prompted by beacons arrive within WeChat’s Shake feature.

Social media and communication giants like Facebook or WeChat realized the power of applying financial transaction features into their extensive social networks. With their continuous hard work, they have come up with great solutions useful for their consumers.