--> Could be seen as -ve fpr Alibaba mobile payment solution as competition is heating up
The mobile payment service has exhibited great potential over the recent years. Chinese internet conglomerates Tencent and Alibaba dominate the market and command a sizeable client base.
The launch is being considered as Tencent's move to cannibalize market share from long-time rival Alibaba.
QQ Wallet hosted an event online during the World Cup, in which users could bet on the winning or losing teams of each game of the quadrennial competition. It was estimated that over 1 million users bet on the payment platform during the World Cup.
The development of mobile payment services in China has grown rapidly, particularly in first and second-tier cities. Consulting firm iResearch data showed that China's mobile payment market was worth 1.53 trillion yuan (US$248.3 billion) in the first quarter of this year, up by 112.7% from the earlier quarter.
China's largest online payment services, Cai Fu Tong and Alipay, have been battling in several areas. The competition ramped up after they launched their respective mobile payment services WeChat Wallet and Alipay Wallet.
But some people questioned whether Tencent will end up duplicating work for QQ Wallet since it already has the WeChat payment service.
Data showed that the number of active users on QQ is at least 80 million, while that of IM QQ is 550 million, with users being recruited from large to smaller cities and even the countryside.
In comparison, most of WeChat's users reside in large cities. In other words, QQ Wallet will help penetrate the market in the remote areas into which WeChat has not forayed.
It is expected that IM QQ and WeChat, which has 500 million users, and Alipay with its 400 million users, will become the dominating forces in the mobile payment market.