Alipay Restructures, Partners with Travel Group for International Expansion
Nov. 7, 2013
Chinese e-commerce giant Alibaba Group said this week it has restructured its payments arm, Alipay. The parent company is looking to sell 60 percent of Alipay to outside investors with the remaining 40 percent to be owned by Alibaba employees. Jack Ma, Alibaba’s founder and chairman, will control 7 percent of the new entity. The newly restructured company’s formal name is Zhejiang Alibaba E-Commerce Co. Ltd., but Alibaba is referring to it in public documents as the Small and Micro Financial Services Group.
In addition, yesterday Alipay announced a deal that will expand acceptance for the alternative online payment method globally. The company has partnered with the airline owned payment network UATP. The alliance will give travel companies in the U.S. and other countries the ability to accept Alipay through the UATP network and access to hundreds of millions of Alipay account holders in China. Chinese consumers have access to airlines, hotels and rental car agencies outside China.
“Alipay is dedicated to meeting the needs of China’s vast and growing pool of keen overseas travelers by making it easier for them to pay for air tickets, book hotels, rent cars and make other travel-related purchases online from the world’s leading airlines and accredited travel agencies,” said Jingming Li, vice president and chief architect of Alipay International.