eMarketer: Tencent is using AI and retail to drive WeChat growth

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As growth in the number of WeChat users slows, Tencent is refining its role as a bridge connecting individuals, businesses and services.

The latest data shows that WeChat's monthly active users have reached 1 billion (MAU). Although its growth rate in the third quarter of 2017 was 15.8%, there is no doubt that the growth rate has been steadily declining.

According to CNN, while WeChat has built a solid user base, especially in China, it has "been struggling to gain significant user base outside of its domestic market."

Most WeChat users are in China, where eMarketer estimates that the number of mobile internet users will reach 728 million by the end of 2018, just half of the total population of 1.4 billion. At this point, WeChat may still have some room to grow. However, acquiring new users will become increasingly difficult and may be costly.

Artificial intelligence (AI) is one of the key technologies driving WeChat’s growth and making it more intuitive to use. Features such as facial recognition and predictive analytics fall into this area, allowing users to interact with the app in a more natural way.

Mobile payment is also an important business for Tencent. The concept of a cashless society is rapidly gaining popularity in China, and WeChat Pay plays an increasingly important role in transactions such as supermarkets, street stalls, taxis and even public transportation.

Tencent recently piloted an e-ID card program with the Guangzhou government, which can be used for hotel check-ins and access to government services.

Of course, we can’t forget retail. Earlier this year, Tencent launched a pop-up self-service store in Shanghai where users can authenticate and pay using WeChat.

After Amazon officially launched Amazon Go, several startups including BingoBox and EasyGo launched their own self-service stores. Offline retail has become an important battleground for many of China's leading technology companies, including Alibaba and JD.com.

199IT.com Originally compiled from: eMarketer. Please do not reprint without authorization