As a Chinese international student in London with previous life experiences in Canada, I have had many opportunities to compare payment methods. As a consumer, I think it is fair to say that China’s payment system is on a completely different level, leading the way in the move toward a truly cashless society.

WeChat’s seamless integration of diverse functions, from user-to-user money transactions, and daily expenses, to content creation. Let us take a closer look at this massive system of multi-purpose money flow.

WeChat Money Transaction

WeChat is well-known as a communication application but it also allows you to send money through chat boxes with people simply by binding bank cards to WeChat Wallet.

• Red Packet: mostly used during Chinese New Year, this feature allows users to send up to 200 yuan in a virtual red envelope, adding an element of surprise by hiding the amount until opened.
• Transfer: with a daily limit of 200,000 yuan and a single transaction cap of 50,000 yuan, and note could be added. 

If you are using these two functions in group chats.

• Red packets are distributed randomly to a selected number of people, which is a fun New Year tradition.
• Specific transactions can be made to chosen payees from the group.
• A bill-splitting tool allows users easily calculate and collect money among friends.

WeChat Mini Programs

WeChat also features mini programs, which facilitate money flow between individuals and business accounts. Users can order food, book tickets, pay bills, play games, and more—all within the app. Nearly every brand has developed its own mini program, enabling consumers to make payments and access services directly online. Plus, if you are paying in person, stores would also provide QR codes for scanning-payment at the checkouts.

Content Creation Money Flow

• Sticker Artists: WeChat allows artists to create and publish their own sticker collections. If users like a particular collection, they can support the artist through the “Like the Artist” feature, and select the money they wish to pay.

• Short Video Creators: The rise of short videos on social media is no surprise. WeChat introduced a feature called Channels, which lets content creators post videos. Within the creator center, account managers can track analytics, access creator funds, monitor live streaming income (audiences could buy Webeans and donate while watching it or buy the product that live streaming is selling), and complete missions the platform created that offer cash back upon completion.

• Official Account Authors: Similar to blogging platforms, WeChat lets creators publish articles on official accounts. Authors can receive donations and support from their readers, creating a direct financial connection with their audience.

While WeChat is a highly convenient app with a wide range of content and functions, there is still a distinction between the WeChat balance and the money in the bank account. According to O’Dwyer, WeChat keeps financial flows within its ecosystems, reinforcing its dominant position while extracting value at every stage​. WeChat forms its internal economy where there is money coming in from individual bank accounts moves between individuals, and pays to business accounts and content creators on WeChat.

WeChat exemplifies how platforms blend utility, culture, and economics. Its features, such as Red Packets, tap into cultural traditions while transforming them into digital practices. At the same time, this also reflects a broader issue in platform capitalism, where companies change their infrastructure to consolidate control over financial and social interactions​.

• December 2024
• October 2024