Why does Taobao issue recharge cards?

Why does Taobao issue recharge cards? Reveal the business logic and user needs behind it

Recently, Taobao launched the “recharge card” function, which triggered widespread discussion. This move may seem simple, but it actually hides the profound meaning of the platform’s strategic upgrade. This article will analyze the core logic of Taobao's recharge card layout from the three dimensions of data, industry trends and user needs based on hot topics across the Internet in the past 10 days.

1. Hotspot data across the entire network: Demand for recharge cards continues to rise

Data shows that attention to virtual recharge products has exploded, reflecting consumers’ strong demand for flexible payment methods.

2. Four core reasons why Taobao launched recharge cards

1. Seize the prepaid consumer market

According to Alibaba’s financial report, the size of the prepaid consumer market will exceed 2 trillion in 2023. Recharge cards can lock users’ consumption funds in advance and improve the platform’s fund utilization efficiency.

2. Improve the closed loop of e-commerce ecology

Through recharge cards, shopping, daily payment, entertainment consumption and other scenarios are connected in series to build a more complete Alibaba ecosystem. Users can use Taobao cards to recharge phone bills, purchase video memberships, etc.

3. Changes in consumption habits of young users

Generation Z prefers the "recharge first and then spend" model, and recharge cards meet their "budget management" needs. The survey shows that 67% of users aged 18-25 are willing to use prepaid cards on e-commerce platforms.

4. Confront competitors’ layout

JD.com and Pinduoduo have launched similar products, and Taobao needs to complete this business segment to maintain its competitive advantage.

3. Market performance of recharge card business

4. Three major issues that users are concerned about

1. Are recharge cards safe?

Taobao uses digital certificate + SMS verification as a double guarantee, and the funds are fully managed by Alipay.

2. What are the advantages over direct payment?

Enjoy exclusive discounts (50% off on some products), participate in recharge and cashback activities, and facilitate corporate procurement and reimbursement.

3. Will it replace the membership system?

There will be no conflict. 88VIP members can use recharge cards in combination to enjoy discounts.

5. Opinions of Industry Experts

Li Ming, director of the Digital Economy Research Institute, pointed out: "It is an inevitable trend for e-commerce platforms to launch recharge cards. This is not only an extension of payment scenarios, but also an important means of user loyalty management. It is expected that the market size will grow by 40% in 2024."

6. Forecast of future development trends

1. Customized recharge cards (such as IP co-branded cards) will become a new growth point
2. The penetration rate of enterprise procurement scenarios will increase to 35%
3. Possibility to connect to Ant Chain to achieve blockchain management

Taobao's launch of recharge cards is not only a supplement to payment methods, but also a key step in building a "super account system". In an era of increasingly fierce e-commerce competition, whoever can provide users with more convenient and economical fund management solutions will win a larger market share.