The Way Apps Like WhatsApp, WeChat Can Make Money Whilst Providing Free Texting And Calling2273935

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Have you ever wondered how a messaging app can make money while giving free texting and calling? WhatsApp users at India might be surprised to learn that there's far more to messaging apps than communicating. Here's how: by offering services for example digital payments, online shopping and content.

China's WeChat is among the ultimate example of the vast potential that messaging apps hold. With well over 900 million monthly active users, WeChat enables them do anything from messaging, buying grocery, hailing cabs, ordering online food and even offline payments at restaurants - all this without having to go to another app. These kinds of services not merely provide the company unbelievable customer stickiness, in addition they create a exceptional revenue model.

At the moment, WeChat's rivals outside China this includes WhatsApp, Facebook Messenger, Skype, Viber and also Line are behind the curve on this front, even though some have begun on the way to becoming greater platforms. "The actual reason chat apps are expanding beyond communications is to build a sustainable monetisation strategy," said Neha Dharia, a senior analyst with a focus on messaging at London-based research firm Ovum. "Chat apps are shifting away from being simply a provider of communication tools chat, voice and also video) to becoming a platform for the exchange of services, payment mechanisms and also content consumption."

WhatsApp, the biggest messaging app on earth with 1.3 billion monthly active users, introduced a business version in India very early this week. "Based on research, we know that people are employing WhatsApp to speak with businesses. make business messaging less difficult for folks and more effective for businesses," a WhatsApp representative said in respond to ET's questions. Whatsapp Business is a separate app from Whatsapp Messenger, aimed largely at giving a direct communicating platform to small enterprises, a lot of who may be using WhatsApp already.

Whilst Whatsapp has maintained the service free, it might extend it to bigger businesses with added features like analytics, by which it could charge a usage fee at a later stage, hence making a revenue model, segment watchers said. This actually also is aimed at improving subscriber connect that it can leverage for future monetization of its other services. The bigger agenda - and a more crucial one - for these companies is to get active users to take much more time on the app or services as well as make it viable for revenue generation, based on analysts.

"Each technology company is competing for consumer stickiness, interaction and also time spent on the app, and in order to keep them around the app's ecosystem they're widening themselves to become platforms. Simply being messaging apps that provide cost-free services won't be a strong revenuegeneration model," said Jayanth Kolla, founding father of Bengaluru-based research firm Convergence Catalyst.

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