The Chinese mobile payments industry has been significantly growing in recent years. Recent market data revealed that its third-party mobile payments industry is now worth 47.2 trillion yuan or 6.8 trillion USD. The country's total retail sales came next as the top-performing industry.
According to Business Insider, Ant Financial's AliPay is the leading company in the mobile payments industry with a 53.8 market share based on the 2018 fourth quarter values. Next in line is Tencent's WeChat Pay and the company's subsidiary QQ Wallet that has a 38.9 percent share in the industry.
Both companies' combines mobile payments dominance showed that the relevant market is experiencing a greater challenge against the two powerhouses since the companies decided to expand their financial services. They have opted to join markets for peer-to-peer (P2P) payments, cross-border capacities, consumer lending, insurance, and wealth management.
The report suggested that global payment companies must be wary about Ant Financial and Tencent's growth, potential expansions, and business strategies to compete in its relevant market. It claimed that the Chinese market has been expanding its reach in this industry and that that they are looking to enter international markets.
According to Yahoo! Finance, Tencent has been set for the fastest market growth since 2018 in 2020. It acquired millions of gamers after the public health crisis and experienced a surge of mobile play.
The lockdown in China has caused the increase of demand for entertainment services that Tencent provides boosting the sales of its products such as Peacekeeper Elite and Honor of Kings. The rise in sales caused the company to garner 25 billion USD of market value on March 5, 2020.
On the other hand, Tencent's WeChat also expects a rise in stock value and revenue after it unveiled its fourth-quarter results last week. Investors have been flocking the stock and are seeking assurances that the company can sustain its topline expansion.
It was also revealed that the social media giant has outperformed its top competitor Alibaba Group Holding Ltd. Last Thursday. The report revealed that the company would also dominate the logistics-dependent rival during the public health crisis.
Tencent's sales, however, fell by three percent in its sixth consecutive week. However, Peacekeeper Elite gained 12 percent which counterbalances Honor of King's 34 percent decline.
It was revealed that Tencent relies on the extent of cash cows of Honor of Kings and Peacekeeper Elite to cope with the economic shocks in China. Investors have been hoping that its customers would remain brand loyal after the adverse effects of the pandemic subside.