WeChat, the super app operated by Tencent Holdings, continues to strike a delicate balance between its dual roles as a major revenue generator and as part of WeChat’s Dual Role: Public Service and Revenue Generation in China, analysts say. With more than 1.3 billion monthly active users (MAUs), WeChat—known as Weixin on the mainland—has become an integral part of daily life in the world’s second-largest economy.
WeChat offers many functions: messaging, video conferencing, mobile payments, shopping, and gaming. Consequently, it is essential for millions. However, its technical updates and policy changes are closely monitored. Both the public and private sectors in China watch these closely, showing its significant influence.
“As a super app, WeChat faces a challenge,” said Zhang Yi. “It must balance its role as a public-service platform and a business. This supports Tencent’s commercial value,” added the founder and chief analyst at iiMedia.”For its future development, WeChat will need to put more emphasis on user experience and diversity of services.”
WeChat’s success as a multifaceted app was even cited by Tesla CEO Elon Musk as a model for transforming Twitter—now renamed X—when he agreed to buy the U.S. microblogging platform for $44 billion in 2022. “There’s no WeChat equivalent outside China,” Musk remarked, underscoring the app’s unique position in the global tech landscape.
Recent initiatives by Tencent show its efforts to strengthen WeChat’s position. Competition is rising from Weibo, Kuaishou, and ByteDance. Earlier this month, Tencent began testing breaking news alerts on WeChat. This aims to expand the platform’s content range and user engagement.
“The key is enhancing user stickiness and activity,” Zhang noted. “This ensures users stay on the platform. It helps maintain a leading position in the competitive market.”
WeChat is also on the front lines of China’s internet industry. Moreover, it adheres to the latest regulations and supports government-backed economic initiatives. As part of WeChat’s Dual Role: Public Service and Revenue Generation, the app is participating in beta tests for China’s proposed cyber identity authentication system. Additionally, it has implemented measures to regulate AI-generated content on its live-streaming commerce platform, Weixin Channel.
Moreover, WeChat Pay and Alipay—its primary competitor, operated by Ant Group—have made it easier for foreign travelers to make payments on the mainland, aligning with new government guidelines aimed at improving payment services for visitors.
WeChat is a major revenue source for Tencent. It earns income from ads and service fees. This includes mini games and e-commerce sales. WeChat has a dual role: public service and revenue generation. The app’s mini program platform had 930 million MAUs in June. It surpassed competitors like Alipay and Douyin.
WeChat recently made headlines due to a dispute with Apple over app payment commissions for mini games. “Apple has brought up the commission issue again, as it feels threatened by the rapidly expanding mini game ecosystem,” Zhang said, adding that both companies “will need to find a balance” to resolve their differences.
WeChat plays a crucial role in both public and private spheres. Tencent’s ability to navigate challenges is vital. This will determine the platform’s ongoing success in China’s digital economy.