For users accustomed to using Alipay for payments, transfers, and wealth management, the sudden appearance of short videos might come as a surprise. Yet this is no fantasy—Alipay is actively working to redefine its identity. In July 2022, the platform upgraded its "Life Account" feature, introducing a central "Life Channel" on its homepage that displays content such as images, short videos, and live streams from merchants, influencers, and organizations. Recently, Alipay further emphasized its video ambitions by adding a "Take a Look" card to its homepage, signaling a strategic push into the short video space.
Strategic Ambitions: Alipay's Short Video Play
Alipay's foray into short videos is not a whim but a calculated strategic move. The "Life Account" serves as a key hub for private traffic, connecting with public traffic sources like the Life Channel and homepage search to boost merchant exposure and content conversion. Over the past six months, the number of accounts on the Life Channel has grown tenfold, while daily content uploads have surged by over 300%, establishing it as a primary platform for businesses and institutions. The introduction of the "Take a Look" feature aims to drive more traffic to the Life Channel, increasing user engagement and session duration.
Content Strategy: Education First, Commercialization Follows
Alipay's "Take a Look" feature initially adopted a distinct approach compared to rivals like Douyin and Kuaishou, prioritizing educational content. Topics such as "How to Save Money Painlessly," "Smart Saving Tips," and "Understanding Social Insurance" cater to users' financial literacy needs. However, commercialization quickly followed, with a flood of sponsored product review videos—ranging from "Best and Worst Bluetooth Headphones" to "Celebrity-Inspired Headphones" and "Gen Z's Smartphone Buying Habits." While this monetization model generates revenue, it has also drawn criticism, with users complaining about overly aggressive advertising.
User Reactions: Mixed Responses and Growing Controversy
User opinions on Alipay's video expansion are divided. Some criticize the platform for straying from its core payment functions, arguing that a financial tool should not prioritize entertainment. Others, however, welcome the innovation, seeing it as a way to enhance user engagement. Despite this, Alipay's short video metrics lag behind dedicated platforms like Douyin and Kuaishou, with low interaction rates and complaints about intrusive ads highlighting the need for better user experience optimization.
Challenges and Opportunities: Alipay's Uphill Battle
Alipay faces significant hurdles in its video push. The biggest obstacle is user perception—most still view it as a payment tool, not an entertainment platform. Changing this mindset and cultivating video-watching habits will be critical. Content ecosystem development is another challenge; attracting high-quality creators and offering effective incentives is essential. Balancing monetization with user experience is equally tricky—over-commercialization risks alienating users.
Yet Alipay has unique advantages. Its massive user base—over 800 million monthly active users—provides a ready audience. Its financial expertise allows for differentiated content, such as money management tips. Additionally, its seamless payment integration could enhance video commerce experiences.
Future Outlook: Live Commerce as the Next Frontier
Short videos and live commerce are inseparable in today's digital landscape, and Alipay will likely follow this trend. In an era where "everything can be sold via live streaming," this model remains the most sustainable monetization path. Expect Alipay to eventually introduce live shopping features. However, success will depend on leveraging its financial strengths rather than blindly copying competitors.
Broader Implications: Payment Apps' Diversification Dilemma
Alipay's experiment offers lessons for other payment apps seeking diversification. As mobile payment competition intensifies, single-function services struggle to retain users. Expanding into adjacent areas is necessary—but must be done strategically, aligning with core strengths. Whether Alipay's video gamble pays off remains to be seen.