On August 5th, WeChat 5.0 was finally released after much anticipation.
This version was originally scheduled to be officially launched at 15:00 on the afternoon of today. However, due to an inability to control the review rhythm of Apple's App Store, the iOS version leaked earlier in the morning. After testing, WeChat 5.0 is not entirely perfect or elegant, but it remains a powerful version: before, WeChat was a communication tool. Now, WeChat is just WeChat. Having partnered with China Unicom for the WeChat WO Card and found domestic security, WeChat began exploring commercialization from version 5.0 onward, with a bright future ahead, though several major hurdles remain.
The first hurdle is Apple.
WeChat 5.0’s launch screen features a nostalgic game: "Airplane Shooting." Cui Jian's song "Nothing To My Name" has been removed. After playing "Airplane Shooting," users can directly share their ranking results to their Moments (social feed). WeChat games are seen by outsiders as WeChat's fastest way to monetize, so the appearance of "Airplane Shooting" on the launch screen is unsurprising.
There are no apparent signs of charges for this built-in game, "Airplane Shooting." The game center under the "Discover" tab will become WeChat's cash cow. The default single game is "Everyday Love Elimination." Upon clicking to download, users are directed to the App Store download page. This means that app store rankings, navigation, search, and download functions cannot be provided by the iOS version of WeChat.
In addition, the crucial "in-game purchases" for monetization are not within the domain of WeChat Pay on iOS. A game criticized over the weekend, "Plants vs Zombies 2," exemplifies this issue. It's a free mobile game, but players must continuously pay to progress through levels. In reality, this is also the inevitable path for mobile games and even ordinary apps to profit in the Chinese market.
The majority of mobile gamers, who belong to the grassroots group, have different consumption habits compared to the elite group. They are unwilling to pay for downloading games; therefore, in-game items and value-added services have become the mainstream charging model. This means that if WeChat games want to monetize, they need users to keep paying during gameplay. But which channel do users use to pay - WeChat Pay, Alipay-like third-party tools, carrier bills, or Apple App Store's payment channel? WeChat has no control over this.
A year ago, the independent podcast service Instacast was removed from the App Store because it integrated third-party payment services. Apple's logic is: if users pay to download applications in my store, I take 30%; if users consume inside your application, I still take 30%. Under the trend where applications and games are mostly free to download, Apple will firmly hold onto its payment power - the revenue-sharing behind payments being the fundamental reason.
Therefore, we see that the payment method for the newly added "Emoji Store" in WeChat 5.0 uses the App Store's payment channel, requiring users to input their Apple ID password and pay with their linked credit card. WeChat Pay, which is part of WeChat 5.0, has not come into play.
Besides the reluctance to venture into the app store business and the limited usage scenarios for payment functions, this edition of WeChat adds the "voice input" feature. That is, WeChat's own developed voice input method. After a trial, its recognition rate has reached mainstream levels. But those who remember should recall the "voice reminder" public account from the previous version, a much simpler version of Siri. In this version, WeChat did not enhance the functionality of the voice assistant; instead, voice capabilities have regressed to merely an "input method." Why? Because Apple has Siri. Even if WeChat develops a good voice assistant, it would not pass the App Store review barrier. iFlytek, which underwent multiple cuts to get through AppStore, serves as a cautionary tale.
WeChat 5.0 could be "prematurely born" before three in the afternoon. If this wasn't intentional, WeChat should feel its helplessness in front of Apple.
The second hurdle is Alibaba.
Besides gaming, the second focus for monetization in WeChat 5.0 is the payment function. Unfortunately, the WeChat Pay on iOS isn't very complete.
Firstly, functions like binding bank cards in WeChat Pay don't have a unified entry point. Looking through all the menus in WeChat, there is no menu for payment or binding. After following the "QQ Recharge" official WeChat account, users can recharge phone credits and buy lottery tickets. For example, recharging phone credits for a Guangdong Mobile number costs 10.4 RMB for 10 RMB worth of credits. After entering the number, users need to bind a bank card, actually using Tenpay's bank card binding function. Lottery and phone credit products are provided by QQ Shopping.
Secondly, WeChat Pay is merely the web version of Tenpay. The WeChat Pay on iOS is simply transplanting the mobile web version of QQ Shopping + Tenpay onto WeChat. The supported scenarios are limited. Currently, only phone credit and lottery tickets are available. Merchant access may be supported next.
Thirdly, WeChat Pay hasn't integrated with the e-commerce websites accessed via the "Scan" feature. Another significant change in this version of WeChat is the support for many "Scan" functions. Scanning barcodes, book covers, CD covers, etc., can directly redirect traffic to e-commerce sites like Dangdang and Amazon (but not Taobao or Tmall). However, once redirected to other sites, WeChat acts as a "browser." Payment actions during the purchase process have no relation to WeChat.
If WeChat Pay were embedded within WeChat (not via official accounts), bound to WeChat IDs or phone numbers, even connected to mobile phone bills, and able to be called upon by other payment-requiring apps or the malls brought by WeChat Scan, and even integrated with offline merchant payment methods, it would unleash its potential.
Currently, WeChat Pay is far from achieving the above scenarios. Version 5.0 is merely "using the web version of Tenpay in WeChat browser to go to QQ Shopping for phone credit recharges and lottery ticket purchases." It is neither simple nor diverse. It's even less convenient than Alipay Wallet. Alipay has already associated past-bound bank cards, linked them to phone numbers, and provided rich functionalities such as transfers, credit card repayments, recharges, utilities, and bill payments. If the next version of Alipay also adds features like "scanning barcodes, book covers, CD covers," WeChat Pay would have nothing special about it.
Interestingly, the Taobao version of Weibo also went live today. The positioning of social commerce meets head-on with WeChat Pay based on social interaction and the WeChat-based e-commerce derived from it.
Of course, the next version of WeChat's payment system definitely won't be in this form. Because the current form is too rudimentary. I added the WeChat ID "WeChat Pay Assistant," clicked on various menus, including the WeChat Pay function introduction, and all it said was "coming soon." This indicates that WeChat Pay was hastily launched before it was mature. On August 5th, WeChat 5.0 was prematurely released, possibly related to the official reservation of the WeChat WO Card and the launch of the Taobao Weibo version today.
The third hurdle is Baidu.
WeChat 5.0's "scan and find the whole world" seems to be advancing into O2O, but in fact, WeChat's ambition is far more than just O2O. It is not just connecting offline with online, but aiming to connect the real world with the internet. Every object, every person, every scene, every sound is WeChat's target.
Scan is actually "visual search," a field explored for many years by Google and Baidu, meaning searching for images with images. For instance, WeChat's translation, cover, and barcode scanning functions were introduced by Baidu last year. Moreover, Baidu offers pet dogs and celebrity faces; while WeChat offers street views—relying on SoSo Street View. If scanning barcodes and covers aims to divert traffic to e-commerce websites, then translation and street view are heading towards search engines.
Zhang Xiaolong once expressed great interest in Google Glass and considered how WeChat could integrate with Glass. If WeChat plans hardware development in the future or embeds itself into Glass, it would become a true wearable visual search client.
After the release of version 5.0, everyone must agree that WeChat is no longer just a "communication tool." WeChat is infiltrating all fields it excels in and finds profitable, such as games, distribution, e-commerce, search, cloud storage services, etc. Previously, I have analyzed in detail in "WeChat Has Reached the Critical Point of Savage Growth."
The fourth hurdle is Mobile QQ.
It is an undeniable fact that Mobile QQ has transformed from WeChat's older brother to its twin younger brother.
As I previously analyzed, WeChat and Mobile QQ will tend to be similar in functionality but diverge further in operations and commercial exploration.
WeChat targets first, second, and third-tier cities; Mobile QQ excels in fourth-tier cities and more grassroots users. However, eventually, users will vote with their feet: between Mobile QQ and WeChat, they only need one. When the market saturation of QQ and WeChat reaches a peak and operational costs remain high, Pony Ma will face the pain of choosing one: selecting the more profitable and future-oriented option and abandoning the redundant one. Of course, it won't be a direct shutdown but more likely an integration.
Therefore, both Mobile QQ and WeChat will strive to show off their strengths to prove themselves early and avoid becoming the one ultimately eliminated. How to show off? User-side goals have been reached, cooperation with operators has found security, and now making money is the hard truth.
Besides the game center, emoji store, WeChat Pay, and scan feature, this version of WeChat's collection function, press-to-add friends method, left-right swipe chat interface switching, and other micro-innovations are also good improvements. However, the folding of official WeChat accounts has finally happened. Service accounts and subscription accounts, the former can obtain more interfaces but fewer mass-sending opportunities; the latter can mass-send daily, but open rates will drop significantly. This is a rather bleak reality for WeChat account operators. But this doesn't matter much to WeChat. WeChat's thinking is already clear: either do basic functions or functions that can generate profits. Media and marketing are not included.
WeChat 5.0 is the most transformative version in WeChat's history. Collaborating with China Unicom to launch the WeChat WO Card signifies that WeChat has finally crossed the river of operators. However, there are still several mountains ahead - App Store, Alibaba, Baidu, and Mobile QQ - that WeChat needs to overcome or bypass. Despite rumors of operator fees, internal competition between Mobile QQ and WeChat, the dichotomy of social and media, and unclear commercialization, WeChat's future has never been brighter. When it seemed there was no way forward, a new path emerged.