15 Sep alipay business model

In doing so, it has become indispensable to the way people pay for things and the company has shown itself to be a pioneer in the industry. In comparing Alipay and PayPal, it is clear that PayPal is still very much focused on its core business of payment processing, whereas Alipay has expanded from its initial core into other related areas. According to an analyst research report, Alipay had the biggest market share in China with 400 million users and control of just under half of China's online payment market in October 2016.

Real-time payment and delivery information are … However, for a POS sale the merchant has to pay 0.6%. Also unlike PayPal, Alipay is free for smaller users of its platform.

PayPal has built a strong brand which stands for reliable, secure payment processing, mostly through its association to eBay and has a strong following in the US, Europe and Asia Pacific. All rights reserved.

Not only do Alipay users have the ability to pay utility bills, top up mobile phone credit, buy train tickets or check the balance of a connected bank account, additionally, Alipay has partnered with many small businesses to allow users to make payments on Chinese websites and offline shops.Alipay is a fully integrated and user-centric solution that covers a great variety of payment needs in people’s daily life.

It was launched in China in 2004 by Alibaba Group and its founder Jack Ma. According to an analyst research report, Alipay had the biggest market share in China with 400 million users and control of just under half of China's online payment market in October 2016.

This web app uses cookies to compile statistic information of our users visits. The merchant has confidence the cash is there before despatch, and receives payment if you do not complain within 7 days of delivery. However, it is important to realize that Alipay should not be viewed as a stand-alone entity, as it plays a much larger role as part of the Alibaba ecosystem.Alibaba started to build the core of its ecosystem in 1999 as a business-to-business trading website, before linking it with Taobao to expand into customer-to-customer e-commerce. The USD $146 billion in payments processed by Alipay totally overshadows the USD $55 billion in total payments that PayPal processed during the same period of 2014.Although services like PayPal have been around for years, Alipay has been dubbed the “PayPal of the East”, but if we really delve into both companies’ business models, it is quite clear to see that they differ slightly from one another and this should therefore be considered when they are compared.In comparing Alipay and PayPal, it is clear that PayPal is still very much focused on its core business of payment processing, whereas Alipay has expanded from its initial core into other related areas.

What is Alipay?

Dropshipping Pyramid Scheme. Opera Mail. According to research by PayPal released November 2016, PayPal’s mobile payment volume is also up 56% over last year and for the first time in the survey’s three-year history, China is the most popular cross-border online shopping destination for global online shoppers.However, Alipay, is predominantly focused on Mainland China’s market, thereby users with linked Mainland Chinese bank accounts can use their Alipay wallets for purchases etc. This enbales them to have a complete and flexible presence in the customer experience, whereas PayPal only operates with regard to the final payment transaction.One of the reasons for Alipay’s success may have to do with the fact that they have extremely low transaction costs.

However, outside the United States, the fee for the merchant is $0.30 per transaction + 4.4% for up to $3,000 sales for the merchant.The main reason PayPal’s transaction costs are more than Alipay’s is because PayPal is primarily a third-party settlement system and therefore transaction charges are their main revenue stream, unless the user keeps a PayPal balance where PayPal has the opportunity to invest those funds in liquid investments, in accordance with state money transmitter laws.

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PayPal has built a strong brand which stands for reliable, secure payment processing, mostly through its association to eBay and has a strong following in the US, Europe and Asia Pacific. Apart from this, when buying products online through Alipay, it could also automatically redeem the fund for the customer instantly and pay their bill. Some of the key services of Alibaba are strategically connected with the Alipay platform, leveraging its large user base to drive further growth.Paypal seemingly limited its customer exposure and business scope by choosing to concentrate on primarily being a payments company. If you wish you may change your preference or It encourages customers to keep their money in Alipay accounts with a promise of return if they move it to Yu’e Bao, a money market fund linked directly to Alipay accounts which invests the customer’s money to the fund to get a much higher interest than bank deposits. On average, senders using Alipay have to pay 0.01rmb per transaction + 0.1% for amounts exceeding 20,000rmb. Consumers’ payment is made to and held by Alipay until he or she have received the product.

Business Model – Tackling the Issue of Trust .

Alipay’s impressive ability to anticipate its customer’s needs has made it a much more attractive value proposition and has paved the way for it to disrupt both personal and corporate banking, as well as the entire financial services sector in China.Sign up for our email newsletter and keep up to date with our latest insights.

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