Tencent and Alibaba are beginning to compete more aggressively for the favor of mobile consumers throughout China
China has become a battlefield when it comes to mobile commerce competition. Two of the country’s largest companies, Tencent and Alibaba, have a longstanding rivalry with one another when it comes to engaging consumers. Both companies are beginning to focus on the mobile space more heavily as well. While Tencent has held a strong presence in the mobile space for some time, Alibaba is beginning to threaten that position by promoting and supporting mobile commerce throughout China.
Firm predicts the future of the mobile payments market in China
Internet consultancy firm iResearch has released a forecast concerning the mobile commerce market in China. According to the forecast, the market is expected to reach nearly $300 billion by 2017, with more than half of online payments being made from a smartphone or other mobile device. Mobile payments will likely continue growing in popularity as more people gain access to the mobile Internet. The popularity of mobile payments has encouraged companies like Tencent and Alibaba to embrace the mobile commerce sector more aggressively.
Tencent powers ahead with its WeChat application and new services
Tencent recently launched a new service for merchants through its WeChat application. The service allows merchants to accept mobile payments through the application, thereby enabling them to become more engaging for mobile consumers. Alibaba has its own mobile payments platform called Alipay, which has managed to accommodate more online transactions than both eBay and Amazon combined. These applications are poised to compete aggressively with one another, but Chinese consumers have yet to show their favor for one over the other.
Tencent may have what it takes to attract the support of China’s merchants
Tencent is expected to have an edge with merchants that are looking to get involved in the mobile space. WeChat is one of the most popular applications in the world and is quite well known in China. The popularity of this application among consumers may be enough to convince merchants that it is the best platform for their mobile commerce interests.
China’s mobile commerce market becomes a battelfield for two large companies
Two of China’s largest companies have entered into a proverbial war over the mobile payments market. Both Alibaba and Tencent have high hopes for the mobile space and have been aggressively establishing a strong presence in the mobile commerce sector. Alibaba has managed to capture a strong lead with its Alipay platform, but Tencent still has a strong connection to Chinese consumers through its WeChat application. Now, the two companies are beginning to fight in the cab-calling services arena.
Cab-calling services receive more attention from Alibaba and Tencent
Cab-calling services are becoming somewhat common in China. These services are very straightforward in than consumers can call for a taxi and arrange for transportation. Some services allow users to pay for their taxi directly from a mobile device. This is meant to make it more convenient for consumers that have become more reliant on their smartphones and tablets to pay their cab fare. Alibaba and Tencent have entered into a price war with their respective Kuaidi and Didi applications.
Applications set to compete more aggressively
The two applications offer similar cab-calling services. As such, they have begun intensely competing with one another for consumers that will likely use one over the other for the foreseeable future. Tencent has announced that those using the Didi and WeChat applications will receive a price subsidy on their travels. Alibaba has also announced a similar initiative, claiming that those using the Kuaidi application and paying for their trip with the Alipay platform could receive significant discounts.
Mobile commerce competition continues in China
Competition in the mobile commerce sector is unavoidable for large companies that intend to establish a strong following in the mobile space. Chinese consumers have become enthralled with the concept of mobile payments and new services are becoming available to them at a rapid pace. These services intend to capture their attention and support for years, but few have managed to actually do so. Tencent and Alibaba have managed to attract support from most consumers in the country concerning their mobile initiatives.
