China's Internet Giants Take Out the Gloves

Published June 27, 2014 by OCR Editor

China's Internet Giants Take Out the Gloves

Tencent is altering its sports lottery payment system to cut Alibaba's mobile payment market share.

As to be expected, sports lottery sales have spiked during the World Cup. In China, a massive sports betting market, the biggest online operators have taken to extreme measures to gain a foothold in the rapidly expanding market of mobile payment.

Tencent Blocks Alibaba Through QQ

For instance, in one end around maneuver, the QQ Lottery, sold under Chinese internet giant Tencent's hit QQ instant messaging service, announced a temporary blocking of Alipay, an e-payment system owned by Tencent rival Alibaba Group Holding Ltd. This imposed “blockage” serves to prevent QQ social media users from using Alipay service for their QQ Lottery betting accounts.

Tencent justified the blockage publicly by claiming that Alipay had inferior service, taking too long to transfer funds to accounts, particularly during this high volume period of World Cup lotteries and betting.

Tencent Scrambling for Cover

The real issue is that Tencent's leading Chinese internet company is in danger, with Alibaba set to proffer a record-setting initial public stock offering in August.

In the same statement, Tencent further “reassured” the public that to top off their betting accounts, they can still continue to use Tenpay, which is the e-payment system owned by Tencent; or WeChat, Tencent's already established app for mobile messaging. Whew, what a relief!

In all “fairness,” Tencent did promise to reopen Alipay access to its users once the so-called bug was fixed, to the utter skepticism of experts who doubt the possibility for widespread malfunctions in highly established payment tools.

Alipay Non-response

Alipay denied the validity of Tencent's statement that Alipay was "endangering users' experience" in any way. Beyond that, Alipay refused to respond to the transparent message.

Battle for Public Trust

As owners of interests in the booming lottery sales and mobile payment markets, the battleground of public opinion is becoming more and more valuable, as trust in the eyes of the public will heavily influence where users decide to place their bets as well as send their personal mobile communications.

The Results?

This round seems to favor Alibaba, as Tencent appears to be resorting to desperate measures, appearing fearful and insecure in the wake of Alibaba's imminent public opening.

See also

China Forex Expo Coming Back in 2018

Forex Comes to the Forefront in China Next Month at China Forex Expo

Forex Touches Down in China with Great Tidings in December

China's Online Gambling Trends: Table Games Over Slots

International Games & Amusement Fair 2018 Taking Place this October in China

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