Maverick China Payment Profiles: Alipay, Alibaba's Payment Arm

The latest installment in our series of profile reports covers Alipay, one of the largest and most active online payment companies in China today. In this report, we investigate how Alipay fits under founder Jack Ma’s master plan for the Alibaba Group and explain the working relationship between Alipay and its sister companies Taobao and Alibaba.com, two of the largest e-commerce companies in China today. This detailed study about Alipay is useful for companies entering China’s online payment and e-commerce markets, as well as for investors following Alibaba.com’s IPO listing on the Hong Kong Stock Exchange.

1 Industry Overview: Key Factors Shaping Third-Party Payments in China

1.1 Continued preference for cash payments, but bank card payments rising

1.2 Credit card use remains low; debit cards widespread

1.3 Limited coverage of non-cash payment services

1.4 China UnionPay’s bank card monopoly

1.5 Quasi-online payment systems an interim solution

1.6 Two ISPs, 162 million Internet users

1.7 Two mobile operators, 500 million subscribers

1.8 Contactless smartcard use increasing but largely limited to buses and subways

1.9 Government regulations and the “national interest”

2 Alipay - Alibaba's Payment Arm

2.1 Ownership, management team, investors

2.1.1 Ownership

2.1.2 Organizational Structure

2.1.3 Management Team

2.2 Operation model and business performance

2.3 Services and coverage

2.4 Markets and channels

2.5 Marketing and branding

2.6 Partners (banks, merchants, technology)

2.6.1 Banks

2.6.2 Merchants

2.6.3 Technology

2.7 Users figures and profile

2.8 Competitive analysis: strengths and weaknesses

2.9 Outlook