Tag: wechat

Tencent may break into mobile commerce with new app

WeChat hosts new application that seeks to modernize an old tradition

Tencent has launched a new mobile application for WeChat users. WeChat is the most popular messaging application in China, and Tencent has been working on ways to monetize the app for some time. The company has taken a strong interest in mobile commerce and has seen the success that online retailers and digital companies have discovered by engaging mobile consumers. As such, the new application for WeChat users aims to leverage the traditional hongbao.Mobile Commerce - New App

App puts a new twist on the honbao and Chinese New Year

The hongbao is a red envelop or packet that is traditionally given as a gift during Chinese New Year and, in some cases, weddings and typically contain money. As Chinese consumers become more mobile, traditions are beginning to become digitized. Tencent’s new “New Year Red Envelope” application is meant to put a new twist on the hongbao. Using the application, people can send digital red envelopes that contain digital currency. The application can be used for much more than exchanging money, however.

New application could encourage mobile payments through the WeChat platform

WeChat users making use of the application can also allow the application decide how to distributes funds amongst a group of recipients. For instance, if a person sends $50 to eight friends, the application can determine that one friend receives $30 while the others receive a smaller sum. Tencent believes that this creates a sense of suspense among WeChat users and encourages them to spend more money through the new application.

Tencent continues to find ways to monetize WeChat and promote mobile commerce

Consumers have to link their bank accounts to WeChat in order to make use of the new application. Tencent has been working to break into the mobile commerce arena through the WeChat platform and the new hongbao application may be the key to Tencent’s goals. The new application may help encourage users to spend money on WeChat’s in-app payment services by making them more comfortable with the concept of mobile payments and sending money through the use of a mobile device.

Alibaba to break into mobile games

Alibaba sees promise in the mobile space

Alibaba, China’s largest retail organization akin to eBay and Amazon, has announced that it plans to break into the world of mobile games. China has become one of the most promising markets for mobile gaming, partly due to the rapid growth of smartphone and tablet ownership. Alibaba has been seeing a major rise in the potential of the mobile space and is not keen to be left behind by its competitors.

Tencent and Alibaba may clash on mobile games

Alibaba is currently working to develop its own mobile gaming platform. This move likely comes as a response to Tencent’s efforts to make its gratuitously popular WeChat application into a gaming platform. Tencent currently boasts of the strongest presence in China’s mobile sector. The WeChat application has more than 570 million downloads and Tencent itself is behind many of the country’s most popular mobile games. Alibaba is keen to break into the mobile space more aggressively and break the monopoly that Tencent is building.

Developers may find Alibaba’s platform attractive

Mobile Games - AlibabaThe organization is providing access to its mobile gaming platform to developers for free this year. This initiative aims to attract game developers to the platform and provide them with the resources they need to develop engaging mobile games that will be associated with Alibaba in the future. The revenue that these games produce will be split, with 70% of the revenue going to developers and 20% going to Alibaba. Approximately 10% of the revenue generated by these mobile games will be donated to rural education initiatives.

Games to be marketed and distributed through Taobao

Alibaba has also committed itself to fully supporting the mobile games that are developed for its platform. The organization will market and distribute these games through its Taobao e-commerce division, which boasts of 700 million users. This will provide developers with a great deal of exposure and help them reach a larger audience that they may not have had access to in the past.