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WhatsApp Partners with Indian Government to Provide Digital Identity Documents In-App

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WhatsApp Partners with Indian Government to Provide Digital Identity Documents In-App

This could be a significant advance in Meta’s push to make WhatsApp an essential utility in India.

Today, India’s Ministry of Electronic and Information Technology has announced that Indian citizens will now be able to access various official documents via WhatsApp.

Integrating with its Digilocker digital documentation initiative, the program will make WhatsApp a more important connector, in even more ways, which could help to reinforce the value of the app for Indian users.

WhatsApp is currently the most popular messaging platform in India, with over 487 million users. And as India’s digital transformation continues to take shape, more and more people are becoming increasingly reliant on WhatsApp to stay connected, with Meta also looking to build in more options for bill paying, money exchange, shopping and more.

In many ways, Meta’s looking to replicate the way messaging apps are used in China, where WeChat has become an essential tool for many day-to-day interactions.

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Indeed, amid the COVID outbreak, the significance of WeChat was underlined once again, with Chinese citizens required to show their health status via barcodes in both WeChat and/or Alipay in order to catch public transport, or travel to certain areas.

Chinese users regularly use their digital identity, via messaging apps, to conduct virtually all of their day-to-day transactions, including shopping, transport, utilities payments, banking, etc.

As per The South China Morning Post:

Many people outside China either still haven’t heard of WeChat or they think it’s the country’s equivalent of popular messaging service WhatsApp or social media giant Facebook. For many people in China, WeChat is much more – it is not an overstatement to say it’s an indispensable part of their everyday lives.

Meta has tried, at various stages, to replicate the utility of WeChat with western users, starting with its push to integrate messenger bots in 2016, to the addition of games to expand usage, to rolling out Facebook Pay (soon to be Meta Pay) in various markets.

Those efforts haven’t seen Messenger expand beyond a messaging platform, which has stunted Meta’s efforts to monetize its messaging apps. But in India, where social media adoption is still evolving, it sees significant opportunity to make messaging a more essential element for the nation’s 1.4 billion citizens.

For comparison, the US, Meta’s biggest market in terms of revenue, has a population of 332 million people.

You can see, then, why Meta is so keen to build on WhatsApp’s presence in the Indian market, which this integration will certainly help with, while Meta’s also rolling out new business tools, like recurring notifications and WhatsApp Cloud hosting, which are available for free for now, but will eventually become paid tools.

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India is where Meta wants to see the biggest take up of these functions, with each step further cementing the app as a key utility for the region.

Again, up till now, Meta hasn’t been able to effectively monetize WhatsApp, despite paying $19 billion for the app in 2014. This is the strongest pathway to building it into a necessary layer for business interactions, which will help Meta dominate in another new market, while also driving significant future revenue opportunities.

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TikTok Scales Back Live-Stream Commerce Ambitions, Which Could Be a Big Blow for the App

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TikTok Expands Test of Downvotes for Video Replies, Adds New Prompts to Highlight its Safety Tools

TikTok’s facing a significant reassessment in its business expansion plans, with the company forced to scale back its live eCommerce initiative in Europe and the US due to operational challenges and lack of consumer interest.

TikTok has been working to integrate live-stream shopping after seeing major success with the option in the Chinese version of the app. But its initial efforts in the UK have been hampered by various problems.

As reported by The Financial Times:

“TikTok had planned to launch the feature in Germany, France, Italy and Spain in the first half of this year, before expanding into the US later in 2022, according to several people briefed on the matter. But the expansion plans have been dropped after the UK project failed to meet targets and influencers dropped out of the scheme, three people said.”

TikTok has since refuted some of FT’s claims, saying that the reported timeline for its commerce push is incorrect, and that it’s focused on fixing problems with its UK operation before expanding, which is still in its roadmap. But the basis – that its program is not going as smoothly as planned – is correct. 

TikTok’s UK shopping push has also faced internal problems due to conflicts over working culture and management.

Last month, reports surfaced that TikTok’s parent company ByteDance had been imposing tough conditions on its UK commerce staff, including regular 12-hour days, improbable sales targets, and questions over entitlements.

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Now, it seems like the combination of challenges has led to a new growth dilemma for the app – which once again underlines the variance between Asian and western app usage trends.

Social media and messaging apps have become a central element of day-to-day life in several Asian countries, with apps like China’s WeChat and QQ now used for everything from purchasing train tickets to paying bills, to buying groceries, banking, and everything in between.

That spells opportunity for western social media providers, with Meta, in particular, looking to use the Chinese model as a template to help it translate the popularity of WhatsApp and Messenger into even more ubiquitous, more valuable functionality, which could then make them critical connective tools in various markets, solidifying Meta’s market presence.

But for various reasons, Chinese messaging trends have never translated to other markets.

Meta’s Messenger Bots push in 2016 failed to gain traction, and after its Messenger app became ‘too cluttered’ with an ever-expanding range of functionalities, including games, shopping, Stories, and more, Meta eventually scaled back its messaging expansion plans, in favor of keeping the app aligned with its core use case.

Meta then turned to WhatsApp, and making messaging a more critical process in developing markets like India and Indonesia. That expansion is still ongoing, but the signs, at present, don’t suggest that WhatsApp will ever reach the same level of ubiquity that Chinese messaging apps have.

Which then leads to TikTok, the world-beating short-form video app, which has seen massive growth in China, leading to whole new business opportunities, and even market sectors, based on how Chinese users have adapted to in-app commerce.

The Chinese version of TikTok, called ‘Douyin’, generated $119 billion worth of product sales via live broadcasts in 2021, an 7x increase year-over-year, while the number of users engaging with eCommerce live-streams exceeded 384 million, close to half of the platform’s user base.

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Overall, the Chinese live-stream commerce sector brought in over $300 billion in 2021. For comparison, the entire US retail eCommerce market reached $767 billion last year.

Given this, you can see why TikTok would view this as a key opportunity in other markets as well – but as noted, Chinese market trends are not always a great proxy for other regions.

The decision to scale back its eCommerce ambitions is a significant blow to TikTok’s expansion plans, not only from a broader revenue perspective (and worth noting, TikTok’s parent company ByteDance recently cut staff due to ongoing revenue pressures), but also in regards to revenue share, and providing a pathway for creators to make money from their efforts in the app.

Unlike YouTube, TikTok clips are too short to add mid and pre-roll ads, which means that creators can’t simply switch on ads to make money from their content. That means that they need to organize brand partnerships to generate income, and on Douyin, in-stream commerce has become the key pathway to exactly that.

Without in-stream product integrations as an option, that will significantly limit creator earnings capacity in the app, which could eventually see them switch focus to other platforms, where they can more effectively monetize their output.

Which may not seem like a major risk, but that’s exact what killed Vine, when Vine creators called for a bigger share of the app’s revenue, then switched to Instagram and YouTube instead when Vine’s parent company Twitter refused to provide such.

Could TikTok eventually face a similar fate?

TikTok, of course, is much bigger than Vine ever was, and is still growing. But limited monetization opportunities could end up being a big challenge for the app – while it also continues to face scrutiny over its impact on youngsters, and the potential for it to be used as a surveillance tool by the Chinese Government.

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In isolation, it may not seem like a major move, scaling back its eCommerce ambitions just slightly as it reassesses the best approach. But it’s a significant shift, which will slow down TikTok’s broader expansion. And it could end up hurting the app more than you, initially, would think.

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