Tag: tencent

Gamification of mobile payments is a hit with consumers

Tencent, one of China’s largest Internet organizations, has been finding a great deal of success in the mobile commerce field, and this may be due to the company’s approach on the mobile space. Mobile payments have been growing in popularity, but there is little incentive for consumers to stick with one mobile service in particular over another. Tencent’s WeChat platform is one of the most widely used mobile applications in the world, but it has only very recently begun to support mobile payments. In a relatively short amount of time, the platform has managed to win consumer loyalty through its unique approach to mobile commerce.

Tencent help digitize a longstanding tradition in China

Tencent has successfully “gamified” mobile payments, making it more appealing to consumers in general. In February, Tencent introduced a new way for people to celebrate one of the oldest traditions of the Chinese New Year: The exchange of hongbao, small, red envelopes that contain money. Every years, people throughout China exchange hongbao, but technology is beginning to play a role in the evolution of this longstanding tradition. Tencent introduced a new feature for its WeChat platform that effectively digitized hongbao.

Initiative encourages people to spend more through the WeChat platform

The service allowed people to send and receive digital hongbao, but the service also introduced some competition to the tradition. Using WeChat, people had the ability to make a red envelope containing money available to 20 people. The first ten people to claim the envelope would get a share of this money, creating an incentive for more people to use the WeChat platform. This competition actually encouraged people to spend more money through the platform.

Gamification of mobile commerce could make Tencent a leader in the mobile field

Gamification is nothing new in the mobile field. Many successful mobile applications have managed to attract support from consumers because they were able to turn everyday activities into an enjoyable game. Tencent’s ability to turn mobile commerce into a game could make it one of the leaders of the mobile field, especially if people continue to respond well to the company’s efforts.

Mobile users in China can receive lucky money when they scan a red quick response code.

Tencent’s red QR codes are a new way for mobile phone users in China to download apps and obtain a red packet of lucky money from Yingyongbao, an official app store of Tencent that has contributed CNY500 million (over US$79 million) to the campaign.

Downloading apps via the red QR code is a unique process.

Unlike the standard app downloading method, apps can be downloaded directly through WeChat Scan. This provides App developers with a new method for distributing their apps and improving their popularity. The staff at Tencent has revealed that Android mobile users can win lucky money from WeChat every time they scan the red QRcodes through Yingyongbao. Each red packet can hold up to CNY200 (about US$32) in lucky money.

The QR Codes marketing campaign has been a success.

The “Red QR code storm connecting all” was an offline marketing campaign that took place in plazas and landmark buildings in some of China’s major cities, including Beijing, Shenzen and Guangzhou, during the May Day holiday. In addition to Tencent, an estimated 20 app developers participated. The red codes can be found in main streets, buses, metros and in other places in the country’s big cities. Thousands upon thousands of people of all age groups, including Chinese and foreigners, engaged in the QR code scanning activity to obtain the red packets.

Hundreds of apps are part of the campaign, with many having achieved a 90% download conversion rate. For instance, China Merchants Bank’s “Handheld Life” has increased to one million downloads after joining. The dramatic increase in downloads is not surprising because the cash bonus users can receive from scanning the Tencent QR codes provide mobile users with plenty of incentive to take part in the marketing campaign.

Furthermore, this method allows users to scan the barcode and immediately download the app via their WeChat Scan. They don’t have to search for the app to download and install it. The red QR codes give developers the chance to boost their download numbers. The popularity of scanning these codes grows as people continue to take part in China’s big cities.