![]() Growth is likely to be further fueled by the increasing numbers of Chinese buying smartphones. ![]() Tech giants salivate over China's online and mobile payment market, which is big and growing rapidly That 18.2 trillion yuan worth of mobile transactions undertaken in Q3 represented a year-on-year surge of 195 percent, according to China Internet Watch. That said, there are other factors that could make expanding its payment system more difficult for WeChat - increasingly fierce competition for the same digital transactions. "WeChat users continue to use the payment tool because of convenience, user-friendliness and the scenarios offered within the WeChat Wallet," said Meng. Tencent data showed that 93 percent of residents in tier-1 cities used the social app, while users in tier-2 and tier-3 cities are expected to grow rapidly in the next few years. Pundits, including the Jefferies analyst, believe the new policy is unlikely to impact WeChat's market share, as most users have less than a few thousand yuan in their WeChat wallet.Īccording Tencent's financial report, the number of WeChat monthly active users reached 650 million in the third quarter last year. " we don't believe that withdrawal fee will generate meaningful revenue for Tencent as the charge rate is minimal." "The newly announced charge will in our view help to offset the burden somewhat," Meng told CNBC in an email interview. Tencent did not reveal exactly how much it paid to banks, but the cost negatively impacted the company's gross margin, according to Cynthia Meng, managing director and head of China TMT equity research at Jefferies. The company acknowledged in its third-quart 2015 earnings report that it was paying "significant bank handling fees" on the money transfer service WeChat offered to its users largely for free. More broadly, the latest numbers available – for the third quarter of 2015 – showed that Chinese transferred 18.2 trillion yuan ($2.8 trillion) via mobile in just three months, according to China Internet Watch, a digital consulting company based in Singapore.īut the growing popularity of digital payments has proved costly for Tencent. ![]() Personal Loans for 670 Credit Score or LowerĪbout 516 million people made transfers during the recent Chinese New Year holiday, racking up 32.1 billion e-hongbao exchanges, according China's official Xinhua News Agency. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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