Samsung Electronics are the world leader in smartphone technology. Their Samsung Pay program is now sweeping the globe as the market leader in mobile payments technology. AliBaba.com is the world’s leading platform for global trade. While Western online shoppers think Amazon or eBay, the vast majority of Chinese shoppers think Alibaba. With over a billion people having access to this online superstore, linking up in a technology partnership would be a business winner. Alibaba have their own mobile payments system called Alipay. Just this week, Samsung and Alipay have linked up to provide a seamless way for Chinese Samsung users to purchase through the Alibaba platform.
Here is the Samsung press release that explains this further:
What is Alipay?
Launched in 2004, Alipay is the world’s leading third-party payment platform. It currently has over 450 million active registered users and more than 200 financial institution partners. Users can hail a taxi, book a hotel, or buy movie tickets directly from various modules within the app and purchase wealth management products such as Yu’e Bao. In addition to online payment functions such as online shopping payments, money transfer, and utility bill payments, Alipay is expanding to offline payments both inside and outside of China. Over 600,000 brick-and-mortar merchants and over one million taxis now accept Alipay as a payment method across China. As of December 2015, Alipay was accepted in more than 60,000 retail stores outside of China. (info courtesy of Samsung.com/newsroom)
Samsung and Alipay – Mutual Benefits
With both of these global giants collaborating in the expanding mobile payments technology, both companies will gain further acceptance and exposure in the online marketplace. Samsung’s market share in China has dropped in recent times, due partly to the advances in local smartphone manufacturers like Huawei. This strategic move between Samsung and Alipay will build brand awareness of the Korean smartphone giant and as an offshoot, highlight the growing demand for mobile payments technology around the world.
What do you think about this new collaboration between Samsung and Alipay? What impact will it have on Apple Pay mobile payments around the world? Time will tell.
Don’t forget, if you have an opinion about this partnership or about mobile payments in general, leave some comments in the box below.