Ant and Tencent on the race to be China’s best
Ant group is a name traveling around in the Tech and Finance domain since its announcement of record-breaking volumes of IPO. The buzz generated by this IPO was a breath of fresh air and positivity for the market. However, the reason for which the name continues to be in trend is something completely different; the offering was precipitously withdrawn by Beijing.
With regard to the recent development, investors and financial analysts are focusing their interest in the Fintech domain back to the Ant group's arch-nemesis in China Tencent. Even though it may sound considerably simple on the surface, there are multiple layers of complication associated with shifting focus from the Ant group to Tencent. Tencent's properties are widespread across various domains and spiral across a multitude of operational structures as compared to the Ant group.
According to the market experts' studies, it was predicted that Ant Group was on track to raise a sum close to $34.5 billion; acquiring this sum could have quickly crowned Ant Group as the king as it would automatically be registered to be the world's largest IPO. This is a clear indication of the status Ant holds in China.
Both companies have established themselves in the fintech domain by offering consumers a way to pay digitally. Compared to today's tech giants in mobile payments Alipay and WeChat failed to capture the market; however, currently, Ant's flagship app is a one-stop marketplace for Ant's in-house products and third-party app services.
However, Ant's rival took a massively different route by opting to grow while providing public services like facilitates to check taxes, pay utility bills, shop for essentials, and book a hospital appointment. Both Alipay and Wechat pay hold over 700 million users and account for over billion transactions in a year.
Alipay and Wechat pay are both exploring new markets and micro-lending opportunities to capture a significant chunk of the Chinese market.