Just how Apps Like WhatsApp, WeChat May Make Money While Providing Free Texting And Calling7653381

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Have you ever wondered how a messaging app could make money while offering free texting and calling? WhatsApp users at India may be surprised to find out there is more to messaging apps than communicating. Here's how: by offering services for example digital payments, online shopping and also content.

China's WeChat is probably the perfect example of the vast potential that messaging apps hold. With over Nine hundred million monthly active users, WeChat enables them to do almost everything from messaging, purchasing grocery, hailing cabs, buying online food as well as offline payments at restaurants - all this without needing to go to another app. These types of services not merely offer the company outstanding customer stickiness, in addition they create a wonderful revenue model.

For now, WeChat's opponents outside China including WhatsApp, Facebook Messenger, Skype, Viber and Line are behind the curve on this front, even though some have started on the path to becoming bigger platforms. "The actual reason chat apps are growing beyond communications is to develop a lasting monetisation strategy," said Neha Dharia, a senior analyst with a focus on messaging at London-based research firm Ovum. "Chat apps are shifting from being merely a provider of communication tools chat, voice as well as video) to becoming a platform for the exchange of services, payment mechanisms and content consumption." WhatsApp, the biggest messaging app on earth with 1.3 billion every month active users, introduced a business version in India early on this week. "Based on research, we realize that people WhatsApp to speak to businesses. make business messaging less difficult for folks and more productive for businesses," a WhatsApp spokesperson said in respond to ET's questions. Whatsapp Business is a separate app from Whatsapp Messenger, aimed mostly at giving a direct communicating platform to smaller businesses, many of who may be using WhatsApp already.

While Whatsapp has maintained the service free, it could extend it to larger businesses with added features like analytics, from which it could demand a usage fee at a later stage, hence developing a revenue model, segment watchers said. This also is targeted at raising subscriber connect that it can leverage for future monetization of its other services. The larger agenda - and a more crucial one - for these companies is to get active users to spend far more time on the app or services as well as make it viable for income generation, based on experts.

"Each and every technology company is competing for consumer stickiness, interaction along with time spent on the app, and in order to keep them within the app's ecosystem they are broadening themselves to become platforms. Just being messaging applications offering cost-free services will not be a good revenuegeneration model," said Jayanth Kolla, founding father of Bengaluru-based research firm Convergence Catalyst.

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