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 ehttp://thenextweb.com/asia/2013/10/17/alibabaisbuildingitsalipaypaymentsserviceintothepaypaloftheeast/ 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
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
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
✓ 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
“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
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 ... bit.ly/11F2eas The clunky, unscrupulous "PreyPal" ... bit.ly/UVXx53 The ongoing joke of it all ... bit.ly/YvxFEg Quotes from the eBay executive suite ... bit.ly/12xvzyA △ ▽ ✉ 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
Get Unlimited Online
Presentations. © 2001–2015The Next Web, Inc. All rights reserved. isbuildingitsalipaypaymentsserviceintothepaypaloftheeast/ 10/10 ...
View Full Document
- One '14
- Alibaba, Alipay, Alipay Wallet app