China fact of the day

by on February 23, 2016 at 2:52 am in Web/Tech | Permalink

WeChat had more mobile transactions over just Chinese New Year than PayPal had during 2015…

According to WeChat, owned by digital media business Tencent, 420 million people sent each other lucky money via the app’s payment service on the eve of Chinese New Year. According to WeChat, it has seen a total of 8.08 billion red envelopes sent so far for Chinese New Year, eight times more than last year.

To put this into context, according to PayPal it made 4.9 billion transactions in 2015 (half of the number of transactions made on WeChat just for Chinese New Year) and only 28 per cent were made on a mobile device.

Here is the article, hat tip goes to Erik Brynjolfsson.  Do not underestimate the potential for Chinese innovation in information technology!

1 Gafiated February 23, 2016 at 3:46 am

And here we see the failure of Mao Zedong Thought to liberate the Chinese from the capitalist power structure.

2 Nathan W February 23, 2016 at 4:19 am

And yet, I am utterly unable to get a pineapple and mango pizza without the mango or an ice cream cone without the cone.

3 dux.ie February 23, 2016 at 8:06 pm

You cannot have it without the mango, mango is sacred

http://www.bbc.co.uk/programmes/p03jr45k

“Mao’s Golden Mangoes”

4 maros February 23, 2016 at 5:05 am

Meaningless fact of the day…
The Chinese New Year red envelopes is a custom. In general, each person nets 0 (younger couples get a small profit, elderly a small loss). Most of these transfers are completely useless – I send you $20, you send me $20.

5 Axa February 23, 2016 at 6:56 am

Perhaps the objective is useless but the methodology it’s another story on its own. Specifically, a success story. Last Cyber Monday, Paypal and Target sites went down due to user traffic. http://www.cnbc.com/2015/11/30/cyber-monday-why-retailers-cant-keep-their-sites-from-crashing.html

6 Careless February 24, 2016 at 7:17 pm

The ones for the wedding, OTOH, are serious business.

7 anon February 23, 2016 at 5:48 am

Not a surprise to anyone who worked with immigrant engineers. Smart people, and there was a sea change sometime after the dot.com boom. In the last 15 years it has become possible to stay home and make money. Then “make money” blew off the roof with Asian tech billionaires.

See also “Emily Parker and Clay Shirky on China’s accelerating technological development”

podcast

8 anon February 23, 2016 at 5:53 am

I guess Japanese and Korean engineers never had to immigrate to prosper. Now the big countries, India and China, have more domestic infrastructure to support their engineers and entrepreneurs as well.

It is one thing to agrue about whether the US should take engineers, it’s another when they stop coming.

9 Ricardo February 23, 2016 at 6:22 am

This is pretty low-hanging fruit. WeChat is a chat application developed specifically for the China market — meaning that the Chinese government is capable of monitoring what goes on there and is capable of linking accounts to specific individuals. The biggest concern about online payments systems is that they might facilitate money laundering or illegal activity. China evidently feels it has enough control and surveillance over WeChat to allow it to become a platform for online payments. Online payments technology is already very mature — the biggest barriers seem to be regulatory.

10 anon February 23, 2016 at 6:29 am

No. Supporting 8 billion transactions from mobile devices is not low hanging fruit. It is the highest performance payment system in the world.

11 Rich Berger February 23, 2016 at 7:25 am

Of course, we have to take WeChat’s word for it.

12 Axa February 23, 2016 at 8:10 am

The owners of WeChat are listed on Hong Kong Stock Exchange. There’s always the possibility of any information released by a public traded company to be a lie, but is it worth the risk?

13 anon February 23, 2016 at 11:06 am

There are 600 million active smartphones in China. That leads to huge numbers. If you don’t “take WeChat’s word for it,” try Alibaba:

“Alibaba just sold over $1 billion of merchandise in 8 minutes in China’s largest online shopping day”

14 Aaron J February 23, 2016 at 11:32 am

Every Chinese person I know was sending money back and forth on WeChat. I don’t doubt the numbers for a second. We’re not talking about government growth statistics here.

15 Alain February 23, 2016 at 11:59 am

anon, while the number of QPS being served is extremely impressive, it is possible that the laxer regulatory environment in China helped the achieve this goal.

Note: speculative. I don’t work in transaction processing.

16 anon February 23, 2016 at 12:14 pm

China certainly has *different* regulatory requirements. Their Great Firewall fingers are in everything, but they probably don’t care too much about IP enforcement, etc.

17 anon February 23, 2016 at 12:15 pm

It also occurs that our HFT stuff has to be “better”, just not customer facing.

18 ac February 23, 2016 at 7:34 am

Do people still use PayPal?!

19 anon February 23, 2016 at 10:04 am

Yes, love that it gives an extra level of abstraction between my credit card and a vendor. I have never had to refuse a charge, but there are two providers I can take that to.

20 Aaron J February 23, 2016 at 11:34 am

Young people have generally switched to Venmo- owned by PayPal of course.

21 The Original D February 23, 2016 at 3:28 pm

How much did WeChat actually make off this? I’m gonna guess zero because it was probably a free offer.

22 Protax.org February 24, 2016 at 3:31 am

Every Chinese person I know was sending money back and forth on WeChat. download game mod apk and game android mod. And here we see the failure of Mao Zedong Thought to liberate the Chinese from the capitalist power structure. I don’t doubt the numbers for a second. clash royale apk and bbm mod. We’re not talking about government growth statistics here.

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