Tencent Launches Financial Services for WeChat App
Tencent Holdings Ltd have released its first financial services products for their mobile messaging app WeChat in the company’s effort to compete against similar product offerings from rivals Alibaba and Baidu. Tencent has teamed up with Hua Xia Bank Co. in offering the product using their WeChat services that boasts of 272 million users globally. Although the services is released on a limited services is not available to all users.
The new service is called Licaitong can provide interest rates that are 16 times more than the central bank’s benchmark on their one year deposit rate for money that is deposited in the fund. China’s finance sector is being dominated by State owned banks for years now, but technology companies are now using online expertise and platforms in pushing financial products that are developed by financial management firms. Baidu, Alibaba and Tencent are pushing to obtain their licenses to create financial services platforms that will offer web users mutual funds, insurance and loans. Suning Commerce Group Co. also got approval to operate a subsidiary to handle online mutual funds.
All of these new services are now being integrated into the company’s online and mobile platforms as part of their new online and offline services. Now they are encouraging their users to try and user the new platforms to do their shopping, manage their finances and book taxis.