Major global payment company based in China, Alipay has announced its expansion in services right from real estate dealings to food delivery and bookings for hotels, Cinemas, and restaurants, etc.

This move is observed as a competitive move against its rival online companies WeChat and Meituan Dianping to catch their market. Alipay also wants to provide its extended services to 44 million retail merchants and its huge online user base of 900 million customers.

Alipay with its 54.5% market share in Chinese mobile payments, now aims to attract the online customers in China with its specialized mini-programs through lite apps to provide access to these services. The company also announced that it will allow third-party vendors to offer their services and goods via its platform in the sectors of accommodation bookings, healthcare, food delivery, etc.

Online Service Market Hit due to Corona virus threat

Due to the outbreak of coronavirus in China and the rest of the world, the online market has suddenly seen an upsurge. Alipay wants to tap into this opportunity and decided to spread its wings across the retail markets.

He Yongming, Vice President of Alipay Open Ecosystem Business said, “We have seen a spike in demand for online services. This trend will only grow stronger even after the virus outbreak ends.”

The mini-program of Alipay will involve 100 million small Chinese retail merchants and will allow the company to manage their customer’s data, product promotions and market analysis.

Alipay has already developed 1.7 million Mini programs to serve the customers.

Recently their developer's team including over 1200 developers, developed 181 new programs regarding grocery deliveries, legal matters, etc. , after the company introduced its corona virus coping incentives.

Alipay's blockchain-based Mini programs

Local reports stated that a property service provider sold 110 million Yuan ($16 million) worth real estate property in auctions through the mini-program of Alipay just within 3 days.

It has used Alipay’s identity verification system, live streaming of auction in real-time and Alipay’s private blockchain that included the local notary agency.

Alipay also has introduced a platform for charity donations to allow donors to track donations and allocation of their funds and donated relief supplies.

Statement from the Company

Simon Hu, Financial CEO of Alipay quoted in his official statement:

“Building a one-stop digital platform not only creates immense value for our users- but it will also play an essential role in accelerating the digital transformation of the service industry and unlocking more growth opportunities.”

Jayashree Ingle

CBW - External Analyst

INDIA