WeChat takes calculated risk with new fee

WeChat, which is owned by Tencent Holdings Ltd, is willing to risk losing some of its 650 million monthly active users to competitors to achieve the long-term goal of dominating the mobile payment service market, according to industry experts.

On Monday, WeChat said in a statement that from March 1 it will begin charging users a fee of 0.1 percent for each transfer from the user's digital wallet to their personal bank accounts.

Cash transfers of up to 1,000 yuan ($150) will be free, but any transfer amount beyond that cumulative limit will incur a fee. The minimum charge for each transfer will be 0.1 yuan. Transferring money to friends or purchasing items with the app's digital wallet will remain free of charge.