Originally published at tech.sina.com.cn, 19/12/2014. (Full Chinese article here.)
After displaying its finesse with the "Double 2" online shopping sale, Alibaba will target its Alipay at overseas mobile payment markets.
Yesterday, HKEX-listed China Smartpay (08325.HK) announced it had entered into cooperation with Alipay, an electronic mobile wallet which is used by consumers for mobile payments and by businesses for business promotion (including QR codes and other barcodes) to help Alipay extend its services to Southeast Asia and Japan.
First Financial Daily reporters verified that Alipay and China Smartpay have signed an MOU, though specific details of the cooperation will be established at a later date.
Reporters learned from stakeholders at Smartpay that the company has conducted business for many years in Thailand and other overseas areas, where local businesses have a wealth of resources. This partnership will use Smartpay's intelligent POS systems and network technology, while Alipay will provide technical support and follow-up with merchant promotion to promote business abroad.
In fact, on expanding overseas merchant and payment opportunities, Alipay's whole international strategy is closely tied to Alibaba's; Alipay is described by its parent company as a pioneer in overseas markets.
Alipay's overseas expansion has been speeding up since mid-2014. In June, Alipay and Shanghai Bank jointly launched an "international remittance" service, which provides 24-hour support to handle cross-border remittances by mobile phone (under normal circumstances, remitted funds are expected to arrive within 3 to 5 business days); in July, Alipay's overseas refund service extended coverage to France, Germany, Britain, Italy, Spain, Switzerland, the Netherlands, South Korea; in November, Alipay began offering direct online purchases overseas—users at home could begin purchasing merchandise from US department stores.
Into December, Alipay has opened up transportation card payment services in China, Macau, Singapore, South Korea and Thailand. Users in those countries can purchase fares through their Alipay wallet by produce their phones to buy their tickets via barcode scanning, presenting opportunities for tourism industries, for example.
Analysys International's latest data shows that in 2014, China accounted for 75% of the third-party mobile payment market (excluding SMS payment); transaction volumes reached 2.0533 trillion, an increase of 25.6% (QOQ). Alipay ranked first , accounting for 79.26%.