A Study on Alipay Essay

1730 Words7 Pages
A Study on Alipay 1.0 Introduction Alipay, launched by Alibaba Small and Micro Financial Services Group in December 2004, is now one of the leading third-party online payment platforms in China (Wikipedia, 2014). Linkedin (2014) shows that Alipay offers online payment solutions to help the retailers to sell directly to consumers in China and provides an easy and secure way for in individuals and businesses to make and receive payments through the internet and the mobile phones. According to OnbileTM (2014), Alipay which aims to be the electronic wallet of customers offers a plenty of online payment services without charging any transaction fee. For example, it provides the platform for the customers to make transfers to their bank…show more content…
This differs from the situation as compared to America. People in China are afraid of giving their bank or card details through the Internet. That will be difficult for Alipay to acquire customers unlike its biggest competitor Paypal in the United States. However, Paypal also faces this problem to enter the China online payment services market. After the operation of Alipay online payment platform, there is a smashing success. Unlike Paypal, which simply transferring money immediately from buyers to sellers, Alipay develops an escrow model that holds the payment in a dedicated account until the customer confirms that the purchased goods have been delivered and were as advertised in order to allay the fear from Chinese citizens who wary about being fleeced by local businesses and individuals (Watling 2014). Alipay is now believed to occupy the largest percentage of the share of the online payment services market recently after lunching diversified online payment solutions. Shown by Alipay (2014), there are more than 550 million registered users of Alipay which is almost half of the total users of online payment services and it has around 8.5 million transactions daily. According to the success of the operation of Alipay, the core competitive advantages against Paypal is that Alipay offers a high security of customers’ information and it offers diversified payment services which are much more
Open Document