2016 WeChat Impact Report: Key Takeaways about WeChat Pay

2016-wechat-impact-report-key-takeaways-about-wechat-pay

2016-wechat-impact-report-key-takeaways-about-wechat-pay

Charles & Keith Singapore uses WeChat Pay to target mainland Chinese consumers

Charles & Keith outlet in NEX shopping mall, Singapore.

Ask any Singaporean to name a local brand, and Charles & Keith will definitely come to mind. Founded in 1996 by brothers Charles and Keith Wong, the brand has expanded its global reach to over 40 countries, including China, France, South Korea, Saudi Arabia, and many Southeast Asian countries. Last year, Charles & Keith garnered further publicity when Game of Thrones actress Maisie Williams carried its bags throughout the Emmy weekend. In China, Charles & Keith is known as 小CK, and has already garnered a loyal following. It has its own WeChat Official Account in China, allowing WeChat users to browse through their products and purchase them directly through the mobile app.

Charles & Keith's WeChat Official Account

In the midst of Singapore’s subdued retail climate, more local retailers are turning to other sources of sales, especially from mainland Chinese tourists. China is the number one market for arrivals to Singapore, with over 2.6 million visitors from China from January to November in 2016, according to an article from The Straits Times. The growing number of incoming Chinese tourists presents a huge potential for retailers in Singapore. Learning from the success of their China counterpart, Charles & Keith Singapore is using WeChat Pay as a start to infiltrate the Chinese market. WeChat Pay is a mobile-payment service available for WeChat users, allowing Chinese tourists to pay using Renminbi, while Charles & Keith Singapore will receive the money using local currency.

A display sign on the cashier counter informs customers that Charles and Keith accepts Alipay and WeChat Pay.

FOMO Pay assisted the Charles & Keith Singapore team by helping them reach and connect with more Chinese consumers using social media, and conducted extensive internal training prior to the launch of WeChat Pay in-store. “After integrating with FOMO Pay, the result is immediate! We saw our transaction volume growth in a very short period of time,” said Arun, Senior Information Technology Manager, Charles & Keith Singapore.  

About FOMO Pay Pte. Ltd

FOMO Pay is the first authorized WeChat Pay & Baidu Wallet partner in Southeast Asia, and was selected as one of the TOP 100 Asian Companies by E27, TOP 100 Startups by Red Herring Asia, and Top 8 by DBS’ FinTech Accelerator Program. FOMO Pay provides a one-stop solution for local merchants by facilitating payment collection from the China market, including Chinese tourists. This comprises of online/offline Chinese payment modes, such as WeChat Pay, Alipay and Union Pay. FOMO Pay’s business solution serves clients from a wide range of industries, including the telecom, publishing, tourism and hospitality, F&B, education and retail industries.

www.fomopay.com
Launched in 2011, WeChat owns one of the largest user bases amongst other social messaging applications. The Chinese platform launched by Tencent boasts of 762 million users globally, and takes the lead as China’s most popular mobile app.

Within 5 years, WeChat has evolved to offer a wide array of services, drawing tons of advertisers to the application. Companies can have their own WeChat Official Accounts to better connect with their consumers, make an impression via WeChat Moments and allow offline and online payments through the application. As of March 2016, there are 10 million WeChat Official Accounts, and 200,000 businesses that accept WeChat Offline Payment in their stores.

The 2016 WeChat Impact Report released by Tencent Penguin Intelligence and China Academy of Information and Communications Technology (CAICT) in March 2016 provides us with some useful information in better understanding this massive base of users.

WeChat users in China

WeChat users in China are highly engaged – more than 90% of users access the app daily and 61% of users access WeChat more than 10 times a day. More than 54% of users spend more than 1 hour on the application everyday, and an astounding 17% of users use the app more than 4 hours per day! This makes the platform a highly attractive one for marketers.

How popular is WeChat Pay?

More than 200 million users have tied their bankcards to WeChat, and more than 50% respondents answered that they would use WeChat Pay for offline purchases instead of traditional payment methods such as cash and card payment when given the option.

Main reasons for using WeChat Pay for offline payments include its ease of use (indicated by 46.2% of users), cashless function (indicated by 44.9% of users) and the discounts and promotional campaigns that accompany these payments (indicated by 39.2% of users).

WeChat Pay can be used for both small and larger transactions – 67% of users spend more than 100 RMB (S$20.81) per month on WeChat, with 21% of users spending more than 1000RMB (S$208.19) per month on WeChat.

WeChat Red Envelope is a fun way to send money to your friends, and can be sent through group chats as well.

The WeChat Red Envelope is the most popular WeChat payment function – 33.9% of users use it on a daily basis to send money to one another. Merchants can also adopt this feature to send discount coupons to their consumers.

WeChat Pay can also be used overseas and supports up to nine currencies – the US dollar, British pound, Hong Kong dollar, Japanese yen, Canadian dollar, Australian dollar, Euro, New Zealand dollar and Korean won. With the rapid growth of adoption of mobile payments around the globe, it is likely that WeChat Pay will become more popular in the near future.

If you wish to learn about WeChat and how it can help your business, feel free to drop us an email at enquiry@fomopay.com.

About FOMO Pay Pte. Ltd

FOMO Pay is the first authorized WeChat Pay & Baidu Wallet partner in Southeast Asia, and was selected as one of the TOP 100 Asian Companies by E27, TOP 100 Startups by Red Herring Asia, and Top 8 by DBS’ FinTech Accelerator Program.

FOMO Pay provides a one-stop solution for overseas merchants by facilitating payment collection from the China market, including Chinese tourists. This comprises of online/offline Chinese payment modes, such as WeChat Pay, Alipay and Union Pay.

FOMO Pay’s business solution serves clients from a wide range of industries, including the telecom, publishing, tourism and hospitality, F&B, education and retail industries.

www.fomopay.com

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