October 27, 2014
Alipay, the payments subsidiary of alibaba group
The new service would help U.S. retailers target around 500 million Chinese online shoppers. Last year, this customer base spent around $298 billion on online marketplaces. ePass comes at a time when online payments solutions are witnessing significant growth globally. Current scenarios like eBay spinning off PayPal and Apple launching Apple Pay clearly signify this growth. Moreover, cross-border online shopping is on the rise which PayPal forecasts that it could surpass $300 billion within next 5 years.
Chinese online shoppers already had the option to buy from goods on U.S. retailers’ websites. But they had to pay using an international credit card
Thus the ePass program addresses issues like currency exchange, customs, and shipping logistics for Western retailers seeking to cater to Chinese online consumers. Alipay is also offering marketing
Gilt Groupe, a fashion and lifestyle e-commerce site, will be among the first to use the ePass platform. According to Alipay, Chinese consumers spent about $33 billion on overseas websites last year. With Alipay’s new service, this number is poised to increase in the coming year.