Alipay, the payments arm of the popular Alibaba group claims to be the number one mobile payment company in the world
While Alibaba is a serious force to be reckoned with in China and the East, nobody quite believed that its mobile payments service – Alipay – could really have outshone the likes of global payments companies like PayPal. However, in a statement released by Alibaba Group Holding, it appears that Alipay has completed more mobile payment transactions in 2013 than PayPal and Square Inc. combined.
That means that more than 100 million users completed over 2.78 billion mobile transactions, totalling in a value of over 900 billion yuan ($148bn) in 2013. And that’s only transactions made through mobile, as there are 200 million more Alipay users that don’t make mobile payment transactions. Comparatively, PayPal reported that they had increased the volume of their mobile payments twofold, to around $27 billion last year.
In November and December, an average of 12 million payments were made through Alipay’s mobile services every day, and since the start of 2014, the figure has grown to a rather impressive 18 million.
It’s not too much of a surprise, as mobile commerce has grown exponentially in China in the last few years. There’s plenty of reasons to imagine how Alipay has grown as 500 million Chinese people were accessing the Internet via mobile phones by the end of 2013. That’s 81 per cent of China’s “netizen” (actively internet involved citizen) population.
A look at what the China is predicted to grow into in terms of mobile payments and eCommerce, news like this seems to suggest that everything is heading down the right track for it to be a mobile payments powerhouse.
Clearly this is very good news for Alibaba, who is expected to sell shares in an IPO that could easily rival that of Facebook’s 2012 offering.
Still, it’s always a little hard to swallow when a company claims to be the number one in the world.
[Image: leondel - Flickr]