There is no doubt that WeChat is the trending social networking app in China at the moment.
However, this is not just because this application allows people to keep in touch with each other through messages, calls and even videos – in fact, it is much more than that.
Whether you want to play games, make some travel arrangements, send some money to a friend or even order some food and get it delivered to your doorstep, WeChat will be a handy companion. All of these e-commerce functions of the chat app are based on the company’s mobile payment system that keeps growing popularity as days go by.
Sending money on WeChat is no longer free
Until now, sending money through WeChat did not attract any form of charges. Also, there were no charges involved when it came to buying something using the application. However, these days are over as Tencent has revealed that it will start to levy a charge of 0.1% for all transactions carried out via this service.Also, this charge will apply to those who use the app to send more than $3,150 per month, but nothing will happen to 0% fee levied on smaller transfers as well as Spring Festival red envelope donations or gifts.
While this might sound like a reasonable move by the company since it has been taking care of the charges that bank levy for moving around money, there are some users, in fact, most of them, who are not happy with this move. According to the online poll carried out where over 2000 respondents took part, over 80% said they will stop using this service due to the new fee. On the other hand, about 8% said it did not matter at all while another 7% thought that it is right to have the fee included.
WeChat is a dominant player when it comes to China’s social space. However, the app’s micro-channel transfer system had yet to pick up, controlling about 10% of the total payments market as compared to Alibaba’s Alipay, which has over 70% market share.
Even though the chat app charges a smaller fee of 0.1% as opposed to Alipay’s 0.2%, the latter’s charges only apply when the transaction is done through its desktop platform. When done from a mobile device, there is no charge involved whatsoever, which where WeChat is getting it all wrong is.