How Apps Like WhatsApp, WeChat Helps Make Money Whilst Offering up Free Texting And Calling

Have you ever wondered just how a messaging app could make money whilst providing free texting and calling? WhatsApp users within India may be surprised to find out that there are a lot more to messaging apps than communicating. Here is how: by providing services for example digital payments, online shopping and content.

China’s WeChat is just about the best example of the large possibilities which messaging apps hold. With over Nine hundred million monthly active users, WeChat assists them to do anything from messaging, buying grocery, hailing cabs, purchasing online food and also offline payments at restaurants – all of this without having to go to another app. These kinds of services not only provide the company unbelievable customer stickiness, additionally they create a exceptional revenue model.

At the moment, WeChat’s opponents outside China including WhatsApp, Facebook Messenger, Skype, Viber and also Line are behind the curve on this front, even though some have begun on the road to becoming greater platforms. “The reason chat apps are widening beyond communications is to create a sustainable monetisation strategy,” said Neha Dharia, a senior analyst with a focus on messaging at London-based research firm Ovum. “Chat apps are moving away from being merely a provider of communication tools chat, voice as well as video) to becoming a platform for the exchange of services, payment mechanisms and content consumption.”

WhatsApp, the largest messaging app on earth with 1.3 billion every month active users, introduced a business version in India early this week. “Based on research, we know that people are employing WhatsApp to talk to businesses.
make business messaging more convenient for individuals and more productive for businesses,” a WhatsApp spokesperson said in response to ET’s questions. Whatsapp Business is a separate app from Whatsapp Messenger, aimed largely at giving a direct communicating platform to small enterprises, the majority of who may be using WhatsApp already.

Even while Whatsapp has placed the service free, it could expand it to larger businesses with added features like analytics, by which it could demand a usage fee at a later stage, therefore making a revenue model, segment watchers said. This actually also is targeted at improving subscriber connect that it can leverage for future monetization of its other services. The greater agenda – and a more critical one – for these firms is to get active users to invest more time on the app or services and make it viable for income generation, according to experts.

“Every technology company is competing for consumer stickiness, interaction along with time spent on the app, and in order to keep them around the app’s ecosystem they’re widening themselves to become platforms. Just being messaging apps that offer free services will not be a solid revenuegeneration model,” said Jayanth Kolla, founding father of Bengaluru-based research firm Convergence Catalyst.

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