One user wrote on Weibo: "Is this not WeChat?"
For analysts in the technology industry, the reasons for Facebook's transition to WeChat are easy to understand. Tencent's WeChat has evolved from a simple information service to a super-application that allows users to shop, taxi, take out, buy movie tickets, book restaurants and book doctors without leaving the platform.
Wechat has more than 1 billion users. Tencent did not specifically disclose the financial data of WeChat, and the game is still its largest source of income. In the last quarter, the company's revenue from social advertising, payment services and other WeChat-related businesses grew by more than 60% year-on-year.
It helped the Shenzhen-based company become one of China's largest and most influential companies. Tencent's investment portfolio includes retail, medical, transportation andeducation.
Facebook executives praised WeChat. Facebook's former Messenger director David Marcus said Asia, including WeChatDevelopmentThe application is a pioneer in providing services on the information platform.
Ben Cavender, a senior analyst at China Market Research Group, said Facebook is "very aware of how Tencent is integrating messaging, payment, e-commerce and all of these small applications onto one platform." .
By entering the service sector, Facebook is trying to find other ways to make money beyond advertising. Advertising revenue currently accounts for about 98% of Facebook's total revenue.
"They look at future growth," Cavend said. "Seeing (WeChat) is an obvious choice."
The biggest attraction of WeChat is its mobile payment system WeChat payment, users only need to scan the QR code to pay in the physical store and virtual store, no cash or credit card.
Analysts said that the popularity of WeChat has attracted many companies, and many of them rely on WeChat. E-commerce companies and many other Chinese startups have gained the status of unicorns by using the popularity of WeChat.
Tencent “has entered the retail, education and healthcare markets, and payment is a stepping stone to their entry into all of these industries,” said Matthew Brennan, a Chinese technology consultant and author. “When you embed digital payments into you, After the system, you can expand and provide other services."
If Facebook's goal is to develop a super app that is comparable to WeChat, it will face a tougher path.
Chinese people are open to adopting mobile payments, and Tencent’s series of acquisitions mean that it holds many shares of companies that provide services through WeChat, such as lifestyle platform US group reviews and e-commerce giants.Jingdong.
But for Facebook, it will have to start from scratch and sign an agreement with individual companies to provide services through its platform. It may also need to convince US credit card users to switch to smartphone payments.
Its past attempts at digital payments have been mixed. Analysts say that Messenger offers a payment feature that allows users to send money to contacts, but it has fallen behind competitors such as Venmo or Apple Pay.