Just weeks after Alibaba’s new financial arm was revealed, the company has announced that its Alipay service is now expanding into the US and Russia, leaving eBay in further trouble.
Zhejiang Ant Small and Micro Financial Services Group, Alibaba’s financial arm is set to undermine eBay’s PayPal. Firstly, they will plan to speed up its international expansion and then they will reorganise itself into six different business units to concentrate on different regions of the world that it is targeting.
Some consumers have already stopped using PayPal as Twitter has teamed up with Apple to launch a new buy button feature. To purchase a produce, consumers will have to use Apple’s new payment method, Apple Pay.
Alibaba has also announced the expansion of Alipay will happen sooner rather than later as it is looking to tap in to the online payments sector in China. In China, consumers making online payments are rapidly increasing but there is still room for growth as a majority of the population still remain unaccounted for. Therefore Alibaba plans to add over 100 million new users from rural China in the next two years.
Online and mobile payments are a hot topic at the moment as companies are doing their upmost to win over new customers by being trustworthy and loyal.
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Cheques are become less and less common in the UK according to new research from global market research firm Mintel which claims contactless card use has overtaken cheque payments in the UK for the first time.
Payments for digital and physical goods made mobile operating system-based payments platforms like Apple Pay and Android Pay are expected to boom in the next few years according to new analysis from Juniper.