WeChat app may soon compete directly with Facebook
WeChat is beating Facebook’s WhatsApp when it comes to mobile commerce, and the app may soon be coming to the United States in order to better compete. WeChat is a messaging application in China owned by Tencent. While those living outside of China have knowledge about the application, it is quickly gaining popularity as more consumers become exposed to mobile commerce. Facebook already has the backing of a massive consumer base, but it continues to struggle to find traction in the mobile commerce space.
What WeChat lacks in membership, it makes up for in mobile payments
WeChat has been operating in the Chinese market for some time. The app currently has more than 600 million users, though WhatsApp boasts of 900 million. Despite the major difference in users, WeChat has a comprehensive business model in place. The app pulls in some $4.2 billion in annual transactions, as it also acts as a mobile commerce platform for those interested in shopping online. Expanding into new markets will provide WeChat with access to even more consumers that want to use their devices to make purchases.
WeChat is making moves to expand into new markets
Recently, WeChat invested some $50 million into Canadian messaging app Kik, which highlighted the company’s intentions to begin exploring other markets. While WeChat is showing interest in new markets, it has yet to enter into these markets. As such, there is little consumers interest in the app, even with the demand for new mobile commerce services growing at an exponential rate. In order for WeChat to compete effectively, it will have to take steps to tailor its services to a western audience.
Messaging apps could be the key to the continued expansion of mobile commerce
Messaging apps are beginning to play a major role in the mobile commerce space. These applications now do more than simply allow users to communicate with one another, as they can also be used to send money to friends and family. The apps can also be used to make payments over a mobile network, something that consumers are becoming very interested in.
WhatsApp has serious competition in regards to Kakao Talk
Popular mobile messaging application WhatsApp has attracted a great deal of attention recently due to its acquisition by Facebook. The prominent social network spent $19 billion to purchase the application and has been working to incorporate the application into its overarching social structure. WhatsApp already boasted of a large user base but with Facebook’s backing, this user base is expected to grow exponentially in the future. While WhatsApp may become more popular in the months to come, it does have a competitor that could destabilize its growth.
Application aims to leverage mobile commerce to gain support
Kakao Talk is another messaging application that has become very popular in Asia. The application has more than 133 million registered users in South Korea and is currently preparing launch an initial public offering being valued at more than $2 billion. What Kakao Talk may offer that WhatsApp does not is the ability to allow users to participate in mobile commerce. Using the application, people can connect with brands more effectively, taking advantage of special deals being offered by retailers and online merchants.
Mobile gaming supported through Kakao Talk
Kakao Talk also boasts of a gaming feature. Mobile gaming has become quite a lucrative aspect of the game industry as a whole. Providing consumers with a platform that has strong social interaction features and that can support mobile games could help Kakao Talk surpass WhatsApp in terms of popularity. Similar platforms have managed to find success with type of approach. The WeChat application, which had initially been a messaging app, is now on its way to becoming one of the most prominent mobile commerce platforms in the world.
Demand for mobile services is on the rise
As people become more reliant on their mobile devices, the demand for comprehensive mobile services is growing. While applications that are meant to serve a single purpose are likely to remain popular well into the future, people are beginning to show more interest in applications that can serve multiple purposes at the same time. These applications have shown that they are able to accommodate the interests of a new generation of mobile users.
