Tencent’s WeChat wallet is luring Malaysian users with free money

Photo credit: Tencent

WeChat, Tencent’s messaging app turned one-stop platform for daily services, has kicked off a one-week campaign to attract Malaysian users onto its digital wallet with free money.

Between August 21 and 28, WeChat’s localized wallet for Malaysia – which launched in June – is rewarding users with virtual money packets worth between US$0.95 and US$21.70.

It’s a digital twist on the New Year ritual of gifting cash-filled red envelopes (hongbao), observed by Chinese people worldwide. WeChat Pay’s introduction of an “e-hongbao” feature in 2014 accounts for much of the wallet’s early success in China.

The digital wallet lets locals make payments and transfer money in ringgit once a Malaysian debit card has been linked. It also offers a range of everyday functions – such as mobile phone top-ups, and bus and plane ticket booking – although the depth of services is still limited compared to those available in China.

Sending virtual red packets on WeChat Pay MY / Image credit: WeChat

Despite its localization efforts, WeChat Pay may run into roadblocks as it chases down Malaysian users.

“Wechat Pay and Alipay are more for Chinese tourists to use in Malaysia,” suggests Navin Danapal, director of Southeast Asia at the MOX accelerator. He adds that people use WeChat Pay in China for high-frequency services linked to the wallet such as ride-hailer Didi Chuxing, akin to how Malaysian users summon GrabPay to pay for Grab.

“People won’t switch payment platforms when [the option of linked services] is limited or if they already use other payment methods,” observes Navin.

WeChat Pay’s Malaysia push comes weeks after its operations director Grace Yin told media that the app’s target overseas user base consisted mainly of outbound Chinese tourists. Yin said that Hong Kong and Malaysia would be the only two territories outside of mainland China where a local WeChat wallet would roll out “in the next three years.” WeChat Pay entered Hong Kong in 2016.

However, a WeChat spokesperson told Tech in Asia that its payment service is eyeing further international expansion.

The messaging app itself had 20 million active users in Malaysia in 2017, out of a total population of 31 million.

Slowdown in core gaming business

Tencent has seen its share price plunge in recent weeks, purportedly due to a restructuring of Chinese regulatory agencies. This is leading to a delay in license approvals for games, a major revenue driver for the company.