My view of WeChat and OfoBike: Culture makes the business.
I come from Singapore, well known as one of the world’s most developed countries. Yet, I find it hard to get around without cash. My credit card is sometimes not accepted in restaurants. Hawker centers still take mostly cash payment.
Coming to China was a hugely eye-opening because to become accustomed to the Chinese way of life it is necessary to download and use WeChat and AliPay — Chinese payment methods. Wechat is truly woven into every aspect of life here, even small fruit vendors at the side of the road accept WeChat payment methods, where you scan their QR code and pay via fingerprint. Vending machines on my campus only accept mobile payment now. You can hold a number in queue, book a doctor’s appointment, and play games on the same app.
It seems to me that WeChat and China’s development is a Didi driver’s favorite topic. Every drive I’ve been on, they ramble about how China 发展的速度太快 (China’s development is growing at too quick a pace.) One of the insights I gleaned from them is that one reason WeChat attracts customers is due to safety and security concerns. You never have to worry about your cash being counterfeit or being stolen. Even if someone manages to get your phone, they would have to crack two passcode to even get to WeChat and it is all trackable via internet so you would be alerted when someone is using your account.
How it works
The payment function is ridiculously simple and quick. The scanning function is immediate. Speed is of the essence in China where everyone seems to be rushing somewhere and there are too many people in your way. On the app there are a few ways to pay — the WeChat scan function where you scan the barcode of the shop and type in the amount you want to pay them. When payment has gone through, often you hear the background noise of the app saying “___ amount paid to vendor.” Another way to pay is showing them a QR code that is named ‘Money’ which controls your wallet, and they use their scanners to scan your unique code.
It is not so surprising that the payment is quick — it is much like a coffee loyalty card where payment is easier for returning users — what makes WeChat unlike any other app is its seamless portal to all third party functions without having to leave the platform itself. It’s almost the mall equivalent of an app. Rather than going to separate and distinct stores, all the stores are encompassed in the same space.
Culture
In America, we use Venmo which is a fast and easy way to transfer money to friends in the event of splitting bills. In China, WeChat uses ‘Lucky Money’ which transforms a tradition of sending hongbao’s for good fortune into a digitised expression that has the same function as Venmo. It is perhaps even more advanced than Venmo. It has ways to split bills evenly and a return function if the user does not accept the payment. Even more entrenched in everyday life, WeChat is a fully integrated app — with social media functions, travel tips, cab bookings, money transfer, bike sharing, and of course, chatting.
To me, seeing the way China has been plunged into the WeChat bubble inevitably brings up questions as to why this sort of life has not yet been implemented internationally. To me, it comes down to the big differences in collectivism and individualism. The Chinese ecosystem is dependent on this collectivistic mindset of the ‘whole’ — therefore a platform that encompasses all functions appeals to the Chinese mindset. In comparison, Western preferences lie in single function, individually powerful apps.
The culture and psychology of a place determines the success and implementation of any idea, which is why behavioural economics and cognitive psychology is so fascinating and incredibly important. Understanding the psyche of the consumer goes so much deeper than metrics and ideals. Bigger than numbers and opinions. In making sense of business plans and marketing strategies, you have to get down to the intricate biases and internal convictions of the customer. There is simply no other way to sell. Lucky Money is one such example of an intensely architected, deep-level blueprint of customer needs — an implementation rooted in the cultural norms and behaviours of China that may not work anywhere else.
However, it does seem that there is a global trend of integration occurring best exemplified by Instagram which is moving towards a more united front of social media. The newest added Instavideo has not yet been a large hit, but I anticipate that soon Instagram will surge to Youtube status as a video app as well. The inclusion of stories has drawn attention away from Snapchat and other apps offering similar experience such as Vine.
Perhaps the West is far from the implementation of integrated apps in physical functions such as paying for things, however the trend seems to be beginning with social media platforms.
Entrepreneurship
On a tangent, I recently learnt that the founder of OfoBike, a bike sharing company, is merely 26. My classmate who used to go to Beijing University told me she once met the founder at a party before OfoBike had even been launched. At that time, the idea had just been implemented within Beijing University and not many people thought it was a good idea since people kept breaking the rules and taking the bikes off the campus.
Nowadays, OfoBike in China is hugely successful, especially since I live in the academic district. However, a thing to note is that the Beijing transit system has the unfortunate characteristic of train stops in the middle of nowhere rather than at desired locations such as malls. Perhaps this is why OfoBike has been so much better utilised in China than in any other country I’ve witnessed.
This world is brimming with talent and opportunity. It has become a world where boundaries still exist but have become permeable to a larger extent, as long as you have wireless connection and an idea. But ideas function with perimeters — there needs to be a desire in the culture where it occurs.
For many, this thought blog reiterates old knowledge, but for so many people the experience that WeChat has given to them is almost revolutionary. To me, it has been an interesting juxtaposition — the ease of mobile payment and the rapidly improving technology within China vs the fact that the malls I visit in the academic district still don’t have doors on their toilets (or toilet paper.)
Perhaps WeChat may not be easily implemented in western countries, but in Asian countries there is definitely room for rapid expansion. In Singapore, Taiwan, Bangkok, Kuala Lumpur — all these capital cities of interest within the Asian Market have huge room for improvement in the mobile payment space (and growing interest.)
Until next time,
Nicole
Originally published at www.nicoleseah.net on August 15, 2018.
