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Alipay: The Rise of China's Mobile Payment Leader
- 2. The Problem • Paying with cash is inconvenient • Paying with credit card is even worse • Online and Offline Transactions Separated
- 3. The Persona • Customer • Don’t want to use cash • Don’t have a credit card • Want to buy things in seconds • Vendor/Small Shop Owner • Cannot afford a POS/Cashier • Want to manage their income easily
- 4. The Product
- 5. Use Case
- 6. Use Case
- 7. Financial Information • Total Saving Deposits: • 2.2 Trillion Yuan (~300 Billion dollars) • Profit: • 9.2 Billion Yuan (~1.46 Billion dollars) (2018) • 5.5 Billion Yuan (~0.82 Billion dollars) (2017) 0 100 200 300 400 500 600 700 800 Aug-16 Nov-16 Mar-17 Jun-17 Sep-17 Dec-17 Apr-18 Jul-18 Oct-18 Feb-19 Number of Active Users of Alipay(in millions)
- 8. Business Model • Interest on Unused Cash • Financial Services • Insurance Selling
- 9. Company History October 2003 October 2006 July 2010 June 2013 November 2013 October 2016 October 2003: Alibaba established Alipay as a payment tool for its C2C (Customer to Customer) e-commerce platform Taobao.com
- 10. Company History October 2003 October 2006 July 2010 June 2013 November 2013 October 2016 October 2006: Alibaba and China Construction Bank released Alipay-CCB credit card and allowed bank account binding
- 11. Company History October 2003 October 2006 July 2010 June 2013 November 2013 October 2016 July 2010: Alibaba released Fastpay, which allows user to carry out a transaction without completing online banking documents
- 12. Company History October 2003 October 2006 July 2010 June 2013 November 2013 October 2016 June 2013: Alibaba released Yu’e Bao, which turns the product from a simply pocket into a money market fund
- 13. Company History October 2003 October 2006 July 2010 June 2013 November 2013 October 2016 November 2013: Alipay was rebranded as Ant Financial Services, and was split off from the Alibaba group
- 14. Company History October 2003 October 2006 July 2010 June 2013 November 2013 October 2016 October 2016: Alipay announced its plan to become both a financial-tech platform and social platform, but failed later
- 15. Secret Sauce • Convenient transactions enabled by QR code • Cooperation with Alibaba’s e- commerce platform Taobao.com • Very high transaction successful rate in high frequency environment • ~99% successful rate while 9B transactions happened in a second
- 16. Competition Alipay WeChat Pay Apple Pay QR code In-store Payment Large User Basis Connection with Social Platform Connection with eCommerce Platform
- 17. Predictions • Success • Still dominates the Mainland China Market • Might expands to overseas market if passes the regulation
- 18. References • https://www.ft.com/content/6d756d0e-4f9f-11e8-9471-a083af05aea7 • https://howdoesitmakemoney.com/how-does-alipay-make-money/ • https://intl.alipay.com/ • https://en.wikipedia.org/wiki/Alipay • https://www.alibabagroup.com/cn/news/press_pdf/p080921.pdf • https://economictimes.indiatimes.com/wealth/tax/when-to-say-no-to- cash/articleshow/64763471.cms?from=mdr • https://wallstreetcn.com/articles/3302669 • http://www.sohu.com/a/232014272_115479 • https://en.wikipedia.org/wiki/Taobao
Editor's Notes
- The company I want to talk about today is Alipay, a third party online payment processor company that is founded in China. Its parent company, Alibaba Group, is the sixth largest company in the world by market value, and is the second largest e-commerce company in the world.(The first is amazon). It was usually recognized as China’s paypal, as they share many common features. They are all third party online payment methods that tried to create an online currency that replace cash. However, Alipay has now become a much bigger company. It is estimated to have an IPO size of around 10 billion dollars in 2019. In my opinion, these two companies are completely different, as they are facing different personas, which determines their development potential.
- So here is our three problems. Bring so many tiny papers with you, maybe lost your purse Enter password for every time Online and Offline in one app
- If you have checked the problem of Paypal, you will find them similar to the problem of Alipay. However, their persona is completely different
- Third party mobile and online payment platform.
- Third party mobile and online payment platform.
- Third party mobile and online payment platform.