Alipay is on Its Way to Become PayPal of the East

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Unformatted text preview: 11/4/2015 Alipay is on Its Way to Become PayPal of the East ANNOUNCEMENT Our New York Conference lineup is now complete! Check it out here.. Alibaba is building its Alipay payments service into the PayPal of the East by KAYLENE HONG ✉ Tweet — 17 Oct '13, 06:32am in ASIA It seems like Chinese e-commerce giant Alibaba is going all out to be the PayPal of the East, mobile-style. The company is taking steps to prep for the overseas expansion of Alipay, the mobile payments company it spun off in 2011, as it also beefs up its existing service in China at the same time. Alibaba says that Alipay already has about a 50 percent market share in China’s e­is­building­its­alipay­payments­service­into­the­paypal­of­the­east/ 1/10 11/4/2015 Alipay is on Its Way to Become PayPal of the East payment market, and claims that about 25,000 Alipay mobile transactions take place every minute, resulting in a daily transaction value of more than CNY20 billion ($3.3 billion) on Alipay. Alibaba, China’s largest retail platform for businesses and consumers, is expected to file a $15 billion IPO next year, which would value the company at more than $100 billion. As the company starts to woo investors, it is little wonder why it needs to prove it can go beyond just facilitating the buying and selling of goods. Alibaba is thus doubling up efforts to push Alipay, as it seeks to build a complete e-commerce ecosystem that can take root in any country it has its eyes set on next. Alipay goes overseas Alibaba desccribes its overseas ambition as an “overall strategy of measured expansion into overseas markets where there are large Chinese-reading populations such as Singapore, Hong Kong, Malaysia and Taiwan.” — News Other than just be content with launching its e-commerce sites overseas in these Conference countries, Alibaba is rolling out Alipay side-by-side. Index Last month, Alibaba launched its Taobao marketplace in Singapore, seeking to make Deals its mark in Southeast Asia after using Hong Kong and Taiwan as a stepping stone a year ago to make the jump overseas. What is interesting is that Alibaba’s local Academy Singapore office will be seeking to expand the use of online payments through AlipayTour in Southeast Asia. The company didn’t elaborate ὐ plans, which hints on specific World ­is­building­its­alipay­payments­service­into­the­paypal­of­the­east/ 2/10 11/4/2015 Alipay is on Its Way to Become PayPal of the East that it is still trying to figure out what steps to take in the regional market. Canvas by TNW Deals The first step Alibaba took today was to announce in a blog post that Alipay is ✓ Copied! moving into Taiwan — which would likely give it lessons in trying toὑconquer other markets. Alipay will be offering its services in Taiwan in the first half of next year, although it is still subject to crossing regulatory hurdles as Taiwan has strict rules over third-party payment providers. Working with foreign companies Alipay has also inked collaborations with foreign companies so they can access Chinese consumers in an easier manner. In September, Alipay joined hands with Singapore Airlines so Chinese travelers could pay for their air tickets using the payments platform while on the Singapore Airlines’ website. Currently, Alipay works with about 15 international airlines including Cathay Pacific and KLM Royal Dutch Airlines. It has also teamed up with hotel booking website Agoda. “Alipay is slowly expanding in the travel industry as China’s outbound tourism market booms. In 2012, some 83 million Chinese travelled abroad, spending $102 billion,” the company said in its blog post. Boosting the Alipay Wallet app ­is­building­its­alipay­payments­service­into­the­paypal­of­the­east/ 3/10 11/4/2015 Alipay is on Its Way to Become PayPal of the East Beefing up the Alipay Wallet app is an important move Alibaba has to take to fulfill its ambitions of bringing its mobile payments platform overseas, and the company announced an upgraded Version 7.6 yesterday. However, the update will only be rolled out before the end of this month on both its Android and iOS apps. Alipay will formally introduce Official Accounts into its app, after testing it for half a month. This basically means businesses such as banks, telecom operators and merchants can have a presence on Alipay — so other than just paying bills, consumers can follow these accounts to get discount vouchers, change their data plans or even check their bank balances, among other options. Alipay says that 70 million users have already tried out this feature and it expects this number to grow as more businesses come on board. To boost its usage, Alipay has also enabled payments to be made offline via soundwave technology — especially convenient for at times when your smartphone loses Internet connection. This new feature will be applicable to payments being processed at vending machines at subway stations, shopping malls and within school compounds. Alipay says that it will likely be expanded to more automated payment processes, including the purchase of movie tickets at certain Beijing ­is­building­its­alipay­payments­service­into­the­paypal­of­the­east/ 4/10 11/4/2015 Alipay is on Its Way to Become PayPal of the East cinemas. Asia is where Alipay will stand out Alibaba’s ambitions for Alipay are taking root at an opportune time, as many in Asia still lack a credit card and probably will find linking a bank account to a mobile payments platform much easier for payment options. Furthermore, the problems that the Chinese market is experiencing in terms of making payments successfully via their smartphones — such as erratic Internet connection, limited bandwidth and even trustworthiness of the merchants — are ­is­building­its­alipay­payments­service­into­the­paypal­of­the­east/ 5/10 11/4/2015 Alipay is on Its Way to Become PayPal of the East issues that the Southeast Asian market likely faces too. This means that Alipay is well-placed to enter the market, well before Western companies such as PayPal actually figure out how to target an audience that doesn’t use credit cards as widely as those in the West. Right now the Alipay Wallet app is entirely in Chinese, which is a huge disadvantage, but Alibaba has already shown that it is making progress in addressing the Englishspeaking population: with its dual-language Taobao Southeast Asia site and as it launched an English language microsite for Tmall, its B2C shopping site for brands. It seems like Alipay is trying to take the first step before its fierce Chinese competitor — Tencent-owned WeChat, which folds in Tenpay’s technology — is able to tap on the massive overseas audience it has via its mobile messaging app. In August, WeChat passed 100 million registered user accounts outside China. Headline image via Peter Parks/AFP/Getty Images, other images via Shutterstock, Shutterstock and Shutterstock Disclosure: This article contains an affiliate link. While we only ever write about products we think deserve to be on the pages of our site, The Next Web may earn a small commission if you click through and buy the product in question. Kaylene Hong a.k.a. kaylene Kaylene Hong was Asia Reporter for The Next Web between 2013 and 2014, based in Singapore. She is bilingual in English and Mandarin. Stay in touch via Twitter or Google+. Say thanks or boo to Kaylene CONTACT POSTS ✉ 1243 POSTS / MO 41.53 ­is­building­its­alipay­payments­service­into­the­paypal­of­the­east/ 6/10 11/4/2015 Alipay is on Its Way to Become PayPal of the East More related stories More by Kaylene Watch a documentary that follows high school girls solving the world's problems through code Anonymous drops names of KKK members online, including US politicians These are the new emoji in iOS 9.1 The Altwork Station is an automated desk-andchair rig that feels like working on a cloud The 14 Best Data Visualization Tools MPAA claims responsibility for burning Popcorn Time Facebook is dabbling in a 'teleportation' station set to launch by 2025 Southeast Asia Hit by Another Broken Undersea Internet Cable ­is­building­its­alipay­payments­service­into­the­paypal­of­the­east/ 7/10 11/4/2015 Alipay is on Its Way to Become PayPal of the East Firefox adds Tracking Protection to make your Private Browsing sessions more private 376 of the best one-liners on the internet GitHub now has a self-paced training course for command-line newbies Hackers claim $1 million bounty after remotely jailbreaking iPhones See all Asia → ­is­building­its­alipay­payments­service­into­the­paypal­of­the­east/ 8/10 11/4/2015 Alipay is on Its Way to Become PayPal of the East × Comments for this thread are now closed. 2 Comments Recommend The Next Web ⤤ Share Login Sort by Best Guest • 9 months ago I buy many items from ali express. and I like them because there's a lot to like about buying from them items that are not availlable elsewhere, at a decent cost, many cheap items for gift giving that dont look cheap but are; and the huge selection! But mach nicht, caveat emptor!, Yes, most, almost all, but NOT ALL ali express sellers are reputable. AE does make a serious effort to get rid of scammers from their site ASAP, however, last year I was scammed once by some con artist selling a large Tiger tank model for $50­ that should have been priced closer to $100 ..after making payment this fellow simply disappeared from the site, ignored emails and I reported the ripoff and got reimbursed, i think...I found it hard to check as their records show the claim but not a debit BACK to me...I'm still not sure if i got the 50 back as there IS no 'head of AE customer service" to write to! But In all buying from AE has been a positive experience, there is so much selection. and if you shop carefully you can often find the same item much cheaper just by searching ALL the vendors. Beware,though, a few vendors/items will say "FREE SHIPPING" on the page, then when you click the item to buy it, whoops! there IS a shipping charge under the price anyway! Other then that, not much shady practices going on with AE and I have done maybe 30 transaction with AE in the last year. see more △ ▽ • Share › Philip Cohen • 2 years ago Whatever; the ugly reality of eBay Inc.: eBay's crooked auctions marketplace ... The clunky, unscrupulous "PreyPal" ... The ongoing joke of it all ... Quotes from the eBay executive suite ... △ ▽ ✉ Subscribe • Share › d Add Disqus to your site ὑ Privacy ­is­building­its­alipay­payments­service­into­the­paypal­of­the­east/ 9/10 11/4/2015 Alipay is on Its Way to Become PayPal of the East ABOUT JOBS TEAM ADVERTISE PRIVACY TERMS FEEDBACK “Chase the vision, not the money; the money will end up following you.” — @tonyhsieh Share GOOGLE DRIVE FOR WORK Get Unlimited Online Storage, Docs, Spreadsheets & Presentations. © 2001–2015The Next Web, Inc. 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