The Motley Fool has a disclosure policy.There are grounds for scepticism. The Motley Fool owns shares of and recommends Tencent Holdings. Joe Tenebruso has no position in any of the stocks mentioned. The Must-Read Trump Quote on Social Securityġ0 Reasons Why I'm Selling All of My Apple Stock The $16,728 Social Security Bonus You Cannot Afford to Miss And once those profits begin pouring in, investors are likely to start bidding up the price of Tencent's shares once again.ģ Stocks That Are Absurdly Cheap Right Nowĥ Warren Buffett Principles to Remember in a Volatile Stock Market So it might be only a short time until Tencent receives the approvals it needs to begin monetizing its tremendously popular games Fortnite and PlayerUnknown's Battlegrounds in China's mammoth gaming market. "We do believe it's not a matter of whether these games will be approved for monetization, it's a matter of when," President Martin Lau said during Tencent's second-quarter earnings call. Yet much of these regulatory delays are the result of a recent reorganization of the department tasked with reviewing and granting gaming licenses, and Tencent's management is confident that these issues will be resolved quickly. Recently, however, Tencent's video game business has seen its profits dented by regulatory-related issues that are preventing several of the company's most popular games from being monetized in China. In addition to owning the most valuable messaging app in China, Tencent is also the largest gaming company in the world. Regulatory challenges should dissipate soon
When they realize their mistake, Tencent's stock price is unlikely to remain at its current depressed levels.
As such, investors are likely underestimating the true long-term earning power of WeChat Pay, and Tencent as a whole for that matter. Yet this interest income represents only a small fraction of Tencent's revenue, and the company already has initiatives underway to mitigate the impact of these lost profits. By January 2019, Tencent will no longer be able to generate interest income on these funds. Investors, however, appear to be focused more on the People's Bank of China's recent mandate that Tencent hold customer deposits in non-interest-bearing custodian accounts.
This gives Tencent an excellent way to monetize WeChat's massive user base, and a powerful means by which to further extend the app's already vast reach. With hundreds of millions of daily users, WeChat Pay is used not only within WeChat, but also by third-party apps and even physical retail stores. WeChat's ecosystem is further tied together by Tencent's digital payment system, WeChat Pay. Incredibly, more than 200 million people use Mini Programs every day. These Mini Programs allow Tencent and its army of third-party developers to deliver more services to more people via the WeChat platform.
#Tencent wechat pay 800m download#
In addition, another popular type of Mini Program, known as Mini Games, is helping developers attract players at a rapid clip thanks to quick download speeds and ease of use. Part of what makes WeChat such a powerful platform is its growing ecosystem of Mini Programs, or apps that operate inside the core WeChat application.Įxamples of popular Mini Programs include:Ī scan-to-buy function that's being rapidly adopted by retailers in China.Ī pre-ordering app that's helping restaurants increase throughput and, by extension, sales.Ī transport payment solution called Tencent Smart Transit that's helping public transport operators improve processing efficiency and reduce costs. 1 messaging app in China, with more than 1 billion users. Investors are underestimating WeChat's profit potential
0 kommentar(er)
