Alibaba counts on E-banking as way forward
Pending regulatory approval, Alibaba’s internet banking business is close to fruition, and could well see it surpass traditional banks in terms of targeted product and service offerings. December 10, 2013 | Bertrand PigeonFounded in 1999 by entrepreneur Jack Ma, Alibaba Group has rapidly grown over the years, and now boasts a portfolio of highly successful Internet-based businesses with “a mission to make it easy for anyone to buy or sell anywhere in the world”. Alipay, a subsidiary unit of the Alibaba Group, is the most widely used third-party online payment platform in China. The platform allows for individuals and businesses to make and receive payments on the Internet, and provides an escrow payment service that reduces transaction risk for online consumers. Shoppers are allowed to verify quality of goods purchased before releasing funds to the sellers. As of November 11, 2013, Alipay set a record for the highest number of single-day transactions, processing 171.3 million payments during a 24-hour period. The Chinese payment platform has also strengthened its position as the preferred online payment tool of Internet merchants domestically, with registered business membership on Alibaba’s e-commerce platform surpassing 83 million. To further grow its brand, Alipay has established partnerships with multiple financial institutions, including leading national and regional banks across China, as well as the likes of Visa and MasterCard to facilitate payments in China and abroad. The payment platform provides a myriad of solutions to merchants in a wide range of industries including online retail, virtual gaming, digital communications, commercial services, air ticketing and utilities. More recently, Alibaba confirmed that it will roll out a new online shopping credit service, dubbed “Credit Payment”, to users on Taobao and Tmall as soon as April 2014. Provided on Alipay, the new service will feature a credit limit of up to $800, with said limit decided by algorithms which takes into account various user data, such as ratings given by sellers and purchase history. It has been reported that 80 million Alipay users are currently qualified to apply for th... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Channels, China, Innovation, Internet Banking, Retail Banking, Technology & OperationsChannels,China,Innovation,Internet Banking,retail,technology, Channels,China,Innovation,Internet Banking,Retail Banking,Technology & Operations, Keywords:Alipay, Alibaba Group, Tianhong Asset Management, Jack Ma, Credit Payment Alipay, Alibaba Group, Tianhong Asset Management, Jack Ma, Credit Payment
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