Boston, MA 10/16/2014 (wallstreetpr) – Financial unit of Alibaba Group Holding Ltd (NYSE:BABA), Alipay Wallet, has decided to enter the payment options field to lure car rental and retailers. The unit, which was transferred in 2011 to Jack Ma, indicated its willingness during a conference in China. Being a domestic company, it naturally enjoys the local support and wanted to take advantage of it.
Alibaba Group Holding Ltd (NYSE:BABA)’s financial unit would provide tailor-made products enabling users to pay for hospital fees besides booking rental cars from the comforts of mobile app, which allows payment system of third-party, Bloomberg reported. The company indicated by using Alipay bar codes, users can also make payment to retailers.
Alipay has been seen to provide a similar service that eBay Inc (NASDAQ:EBAY)’s PayPal offer. It has processed over three quarters of transactions on retail last year on Alibaba’s platform. Besides, it has registered users of over 800 million at the end of July 2013.
The report said that Zhejiang Ant Small & Micro Financial Services Group Co., its affiliate, received approval last month to set up a bank. The objective was to establish one trillion yuan or $163 billion marketplace of loans within a couple of years. It was also developing a technology to recognize face and fingerprint to be used as a safeguard for financial dealings.
Its senior Director for Internet security said that Alibaba Group Holding Ltd (NYSE:BABA) wanted to create a future-facing payment technology and Alipay has created more innovations for it.
Transfer of Alipay
Alipay is now controlled by a company of Jack Ma after its transfer in 2011, which was criticized by Yahoo! Inc. (NASDAQ:YHOO) for keeping it in the dark despite being a major shareholder. Ma said that it was done to fulfill the domestic regulations since it had ownership of a foreign company. Later, it settled for compensation at the cost of growth in business.
Alibaba Group Holding Ltd (NYSE:BABA) indicated that Alipay would launch an initial public offering in the future with an equity value of not less than $25 billion.