Facebook's reported push into payments on WhatsApp is aimed at replicating the successful feature on WeChat. Analysts say, however, that it will be tough for Facebook to mirror the success of the Tencent-owned app.
Facebook is reportedly looking to push into the payments space with its own cryptocurrency. If successful, such a move could replicate China's massively popular WeChat, but striking gold could be a tall order for the social networking giant.
WhatsApp was acquired by Facebook in 2014 in what was the company's largest acquisition ever. Since then, it has largely focused on messaging and a few social features. It's the largest messaging service in the world with 1.5 billion monthly users. Facebook is attempting"to replicate some of the success that WeChat" has had, Barclays said in a note on Monday, adding that becoming"the 'WeChat Of The West' is going to be hard for WhatsApp to pull off."
"Further, the mobile payments ecosystem in China developed vastly different than what we see in the West and across most of WhatsApp's markets," Sandler added.A Facebook representative did not respond to CNBC's inquiries about whether it is trying to replicate WeChat, noting instead that the company did not"have anything further to share" about it's broader payments effort.
Not only does WeChat offer payments, but it also has other financial services like wealth management and micro-loans. Facebook's payments push may not be as ambitious.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Senior China diplomat urges U.S. to meet China halfwayThe Chinese government's top diplomat, State Councillor Wang Yi, said on Fr...
Read more »
Senior China diplomat says China-U.S. trade talks have made substantive progressThe Chinese government's top diplomat, State Councillor Wang Yi, said on Fr...
Read more »
It looks like Facebook is giving up on its years-long effort to bring its social network to ChinaFacebook has been working to expand business in China, but Mark Zuckerberg's new note on privacy suggests that Facebook won't build data centers there
Read more »
China has to learn from Japan's lost decade: former officialChina needs to learn lessons from Japan's lost decade and control future le...
Read more »
China using 'pay-day loan diplomacy' in the Pacific: U.S. diplomatChina's is using 'pay-day loan diplomacy' to exert influence in t...
Read more »
Fewer companies in China are planning to hire, survey findsMaking sure people have jobs is a growing worry for the Chinese government as it tries to manage a slowing economy and clinch a trade deal with its biggest trade partner.
Read more »
Deal or no deal, U.S.-China trade talks may finish in weeks: LighthizerThe United States and China may be in the final weeks of discussions to hammer o...
Read more »
EDP overhaul makes Chinese bid look extra stingyThe Portuguese utility will sell assets to cut debt and invest in renewables. It looks like a balancing act between the demands of activist Elliott, and Portugal’s government. But the potential boost to EDP’s value bolsters the case for rejecting an offer from China Three Gorges.
Read more »