“A possible alliance in electronic payments between two of the tech world’s hottest companies — Alibaba Group Holding Ltd. and Apple Inc. — could open new doors for both in China, the world’s biggest e-commerce market,” Juro Osawa reports for The Wall Street Journal. “But analysts and payment experts say such an alliance, which was suggested Monday by Alibaba Executive Chairman Jack Ma during an interview at the WSJD Live global technology conference, may first have to overcome a host of technical and possibly regulatory hurdles.”
“Any such partnership could be a formidable force in China, where Alibaba controls roughly 80% of the country’s online shopping market, valued at around $302 billion last year, according to the Chinese government,” Osawa reports. “Alibaba’s payment affiliate Alipay already handles a bulk of those online transactions. But it is trying to expand further into handling payments at brick-and-mortar venues—from shops to restaurants, taxis and theaters. Analysts say it could make headway with a tie-up that allows iPhone users to pay for goods from Alipay accounts, with a tap of their handsets.”
“For Apple, which recently launched its own payment system called Apple Pay, working with Alipay in China could give the company access to Alipay’s powerful transactions-settling system, which is already used by hundreds of millions of consumers and businesses. It would also let Apple take advantage of Alipay’s existing agreements with more than 200 Chinese financial institutions, which allow users to transfer money from their bank accounts to Alipay accounts,” Osawa reports. “A partnership with Apple would allow Alibaba to get access to information on payments made in brick-and-mortar stores through Apple Pay, analysts say.”
Read more in the full article here.
[Thanks to MacDailyNews Readers “Dan K.” and “Bill” for the heads up.]
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Apple and Alibaba: A dream matchup and potential nightmare for Amazon? – October 29, 2014
Apple CEO Tim Cook talks Apple Watch, Apple Pay, and Alibaba (with video) – October 28, 2014
Apple-Alibaba partnership could transform electronic payments – October 28, 2014
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Wow! Just Wow!
Huge. And more will fall into line in other regions. Apple is on track to become the first trillion dollar valued company very soon. Those who doubt this will learn the hard way not to underestimate them…
A deal like this will add millions of iPhone sales and provide growth for years. Cook and company are getting the deals done: last year NTT DoCoMo and China Mobile, this year almost every major bank, credit card company, and on the verge with Alibaba – Impressive.
“payments made in brick-and-mortar stores through Apple Pay, analysts say.”
ANALYSTS say….then it MUST be true LOL
Funny, I thought one of Apple PAy’s chief attractions is privacy-that Apple will not be providing /selling user data on purchases
Yes I noticed that though clearly others glossed over it, doesn’t make these rumours very convncing, but either way there will be a lot of tough bargaining to make it work.
This makes me a bit nervous. I don’t trust China
Wow is right. There’s no telling what these 2 companies can do together. Cook and Ma can learn a lot from each other. This could have truly historic consequences.
This could be so much more than just payments and iPhone sales.