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WeChat is a financial disaster for all we know. 1.4 billion people use it as their dominant payment method. Not mobile payment method, but payment method full
by contingencies 7y ago
WeChat is a financial disaster for all we know.
1.4 billion people use it as their dominant payment method. Not mobile payment method, but payment method full stop. I think it's safe to say they're incredibly profitable.
- simplecomplex 7y agoThey could be losing money on 1.4 billion in transactions. Their super low transaction fees might indicate WeChat Pay is a loss leader. That’s my point. Tencent intentionally hides WeChat in their financials. You assume it’s wildly profitable because Tencent is. Usually when a company tries to hide the financial narrative of a product it’s not because it’s doing great. “We consider payment at this point in time as to [sic] infrastructure service rather than a service that generates profit for us. And I think that status will maintain for quite some time,” Martin Lau
- contingencies 7y agoI don't think you understand the model. People transfer money in, then leave it there. It literally can't lose money.