WeChat is a social media application predominantly used for messaging and payment services. The app was introduced in the year 2011 and in a span of 7 years; it has reached to astounding heights. In 2016 it was considered as one of largely used chat apps amongst all the others. The app has been able to go beyond its origin and get famous with the other markets in the overseas as well.
On the other hand, Alipay is an online payment platform from a third party and was launched in 2004 by Alibaba Group. It has the biggest share in the market in China with around 400 million users of the platform. Apart from that, it is considered that 50 percent of the payments which are being made through online are with the help of this particular platform.
Tencent ~ the Giant in Social Networking
Tencent has been the behemoth of social networking, which has designed and developed WeChat. On the other hand, Alipay has made it to the top by being one of the best online payment platforms. In the recent times, we can see that there has been a tremendous growth in the markets. We can see that there is an increased amount of shopping done in online mode and the payments are done through online as well.
Online Shopping is Trending
It is evident that the people from this generation would prefer to buy products online at their own comfort rather than strolling through the malls and supermarkets. Mobile payments are where we can find that most of the users are making their payments on a regular basis. The device has been a wonderful aide for everyone to make payments without having the need to carry cash.
Rise in Mobile Payments
There is a productive growth in the market when it comes to the payments made through mobile apps. The statistics show that there is a growth of around 200 percent every year in the mobile payments business. Business people and entrepreneurs find this to be the right place for them to fetch information about the consumers.
Sales in China
In China, 50 percent of the sales are done online and the most predominantly used devices are the smartphones. One of the partners of Alipay, Ant financial has dominated the market for a real long period with its mobile wallet. It was launched in 2009 which is considered the pioneers of the mobile payments. Apart from that, the company had owned almost 80 percent of the market in the 5 quarters.
Progress of Alipay in the market
The profit percentage started in the 3rd quarter of 2013, but we can see that there is a competition being built against the company. WeChat is said to be the strong contender which the company is facing at present. People who use this platform are increasing and it is not just about messaging. It has the feature for making an online payment through the app.
Competition between Alipay & WeChat Pay
There are instances when we happen to leave one app, just to use the other to make a payment. In this case, the payment option on the app has created a huge competition for Alipay. A recent survey on the mobile payment made in China showed insights on which companies had a better share of the market. It is said that Alipay has scored around 54.3 percent of the share, whereas Tenpay (along with WeChat Pay) took the second place at 37 percent.
Rise in transactions on Alipay and Users on WeChat
Alipay observed that the transactions which were made on its platform were getting high which had a great impact on its market. But, similarly, there was an increase in a number of active users on Tenpay as well. What is the factor which actually made WeChat markup to the level which Alipay has scaled over the years?
WeChat has a huge user database through the social connections which people have on this platform. They find it easier to reach to the major part of the population and it has helped millions to stay connected. One of the prominent reasons why the company has nailed is the social interactions and the business relationships. Scimbo is a software which has the clone script for WhatsApp, one can try it out to start their business.
Virtual red Packet of WeChat Pay
A particular tradition is followed in China during the Chinese New Year, which is exchanging red packets filled with cash. This is the aspect which WeChat has taken into account and has executed it in its app as well. WeChat launched its own red packet; the only thing was that it was a virtual kind. It allowed the users to share around 29 US dollars with their other WeChat contacts.
This initiative reached the millions of users and during the Chinese New Year’s Eve in 2014, it is said that there were around 16 million red packets exchanged through the app analyzed by Tencent. A year after the initiative of exchanging the red packets through the app, the number of exchanges scaled up to around 1 billion.
Switching from Conventional Way to Digital Way
The tradition of the WeChat Red Packets started from the Tencent practice of the Cantonese tradition. It is said that the manager should give each employee a red packet with some cash on the first day at work after the Chinese New Year. Over a period of time, it was something which went over the board and the higher officials were struggling to give out the red packets and they wanted a solution for this.
With a solution to be found, it became the idea for WeChat’s Red Packet soon. Alipay found this to be intimidating and decided to launch the same with its service as well. The Chinese New Year is going to get really tough for both the companies as both will be trying different tactics to lure the users. It is clear that they will try their level best to outperform each other and make it to the top.
Augmented Reality on Alipay
Alipay upgraded the way its app works with introducing the augmented reality. It will help the users to go on a search for the red packet, similar to that of the Pokémon Go game. Though there were a lot of techniques which the company has tried to imply, WeChat did outperform the company in its own way.The latter was able to grow to a tremendous height and the user base increased to around more than 100 million users.It is said that they have combined the bank accounts with the WeChat Pay feature on the app. Even now, exchanging of the red packets is the tradition which is being followed on the app, which helps the users to transfer money to their other WeChat contacts. Penguin intelligence made a survey and the results showed that around 87.8 percent used WeChat Pay to share red packets and 67 percent used it to make other payments as well.
Integrating other businesses to the system
Both the companies have not stopped with just the red packets; they have integrated their services to other businesses as well. They have embedded the systems like ride-hailing, conveyance payments, phone recharge services, movie ticket booking and lot more. It is evident that Alipay and WeChat are making sure that their consumers and users receive the best of services.
Trends are changing and so are the people with the ways they used to shop in the past and make payments. The world is moving fast and we can that the economy is changing into a cashless one, e-wallet has become a norm with the current scenario. Alipay is considered to be the pioneer, but the new bee WeChat is making to the top of the charts. It is clear that, both the companies are definitely in a clash with surpassing each other with the mobile payments system. Let’s wait and see who will win the race. Fingers crossed!!!