Stripe, a California-based online payments company, has recently announced its support for Alipay, China’s largest payment processor for checking out. Stripe users can sell to 500 million new customers by accepting payments through Alipay.
Stripe is headquartered in San Francisco and has over 210 employees working for the company. It was founded by Irish brothers Patrick and John Collison. Stripe focuses on providing the technical, fraud prevention and banking infrastructure required to operate online payment systems. Stripe is available for business in about 20 countries with a few countries in private beta phase.
Partly owned by Alibaba.com Founder Jack Ma, AliPay is contributing to the payments revolution in China in a big way and boasts of around 50% of the market share of the entire Chinese e-payment market. The popular Chinese payment processor has been successful in making the mobile phone as the prime medium of making payments for its customers.
Stripe entered into a strategic partnership with Alipay in June 2014 and has been developing and testing Alipay on Stripe’s payment platform for well over a year.
“Businesses in 14 countries are using Stripe to sell to customers all over the world. About 1 billion people hold one of the cards that Stripe supports today, but these card brands see little usage in China. Alipay, on the other hand, is used by hundreds of millions of Chinese consumers. We’re building a universal platform for Internet commerce; in order to enable China’s 1.3 billion people to buy from Stripe businesses, we decided to add support for Alipay,” Christian Anderson said in Stripe’s blog.
Today, Stripe retailers could sell to 500 million new customers, and will automatically detect Chinese buyers and enable them to pay on the Web and mobile using instant SMS authentication.
“We’ve been very clear with our signaling, talking about how important it is to us that we can enable buyers and sellers anywhere in the world. We’ve talked about how crazy it is that if you go and launch a site or build a mobile app, you can’t sell frictionlessly to anyone anywhere in the world,” Stripe Founder Patrick Collison said to CoinTelegraph.
The integration of Alipay onto Stripe’s existing payment platform will open up western merchants to the “lucrative” Chinese market. Alipay has over 300 million registered users and processes 80 million transactions per day. In fact, Alipay’s transaction volume reached $225 billion in Q2 2014, according to research. Alipay, as a mode of mobile transaction, accounted for 80% of third-party mobile transaction volume in China in Q2 2014, establishing itself as the most popular e-payment platform in China.