May 1, 2014
According to data from data analysis and online tracking firm iResearch, the total transaction volume by independent mobile payments services from China increased by 707%, rising to $201.2 Billion (1219.74 Bn Yuan) in 2013. Alipay, a subsidiary of Alibaba, accounted for 75 percent of the country’s mobile payment market as of June. On 1st May 2014, WSJ reported that Alibaba Group is in discussions with its major share holders to buy back a stake in Alipay, which was sold in 2011 to an establishment operated by Jack Ma.
Alipay is an online payment services provider founded by the Alibaba group in 2004. The system allows individuals and businesses to make payments online in a secure manner. Alipay’s users are primarily buyers and sellers engaging in e-commerce transactions. Alipay has partnered with some leading Chinese banks includingBank of China, China Construction Bank, Agricultural Bank of China, the Industrial and Commercial Bank of China and Visa.
These discussions appear as Alibaba Group gets ready for an IPO offering this year that is evaluated at over $80 Bn.
The total volume of Alipay’s mobile payments surged past 900 billion yuan, or $150 billion said the company in February. This surpasses the combined volume of U.S.based rivals PayPal and Square. Alibaba Holding Group Ltd is a network of e-commerce B2B businesses constituting an online marketplace, shopping search engine, retail and payment platforms and more. It is led by chairman Jack Ma, whose net worth is $3.6 Bn.