Alibaba Group Holding Ltd (BABA)’s Alipay Partnering With Merchants For Offline Payment

Jack Ma

CEO of Alibaba, Jack Ma

Alipay, a product or a unit of Alibaba Group Holding Ltd (NYSE:BABA) seems to be aligning with merchants for offline payment options.

Third-Party Partners

Alibaba Group Holding Ltd (NYSE:BABA)’s payment processor has already started soliciting third-party partners with a view to assisting itself in the network of offline payment. The objective of the  creating alliances was to focus on increasing the number of merchants, which can accept the payments powered through Alipay’s smartphone app of Alipay Wallet. However, the company is yet to announce a number or any partners it has aligned with.

Alipay has reportedly signed ten authorized representatives in Shanghai while figures from other cities were not available.

Prevents Partnering With Others

One of the agreements of the partnership deal was that Alibaba’s Alipay payment partners would not be entertained in striking a similar online to offline deal with others. It meant that the alliance partners would not have any deal with WeChat Pay, which is Tencent’s payment platform, and the app of WeChat mobile messaging.

The Chinese payment processing wallet allows users to complete offline payments through a barcode from their smartphones, which was scanned by the retailers to process the payment.

Despite a lot of new entrants in the payment process system, eBay Inc (NASDAQ:EBAY)’s PayPal would not likely to face pressures. It was because the market is growing, and there were tremendous opportunities to tap.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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