How Will Alipay Fare Against Apple Pay And PayPal?
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Related article:
http://venturebeat.com/2014/10/27/apple-alibaba-in-talks-to-link-up-apple-pay-alipay/
The Chinese e-commerce giant, Alibaba Group, has caught the world’s eyes with the largest IPO, along with its largest payment system in the world, Alipay. Very similar to Paypal in the US, Alipay is a payment system universally used among small businesses in China. The system features a safe, free, and escrow service, where customers can pay after they are are confirmed that they are happy with the transaction with no transaction fee. Aiming at small businesses, the payment system makes it easier, more reliable and much cheaper for individual business owners to get their earnings from a guaranteed third party. Now that Alibaba Group has come to the US, Jack Ma, the CEO of Alibaba, is also bringing the payment system to the international business field. He spoke publicly someday ago that he wished “we can do something together” when he referred to Apple. Tim Cook, the CEO of Apple, also responded, “We love to partner with people who are wicked smart, with flexible teams, who are product-based, who push us, and we push them. Jack [Ma, CEO of Alibaba] has a company that’s exactly like that.” The chance of the link-up between Apple Pay and Alipay is high. In the meantime, challenges can come to both of the companies.
Questions:
1. What are the challenges faced by Alipay when entering the US market if it keeps its strategy of aiming at small businesses? In the meantime, what are the advantages?
2. If you were a small business owner, which payment system would you consider using, Paypal, Apple Pay or Alipay? Why?
3. What are their mutual benefits if Apple Pay and Alipay link up? What are the benefits for customers?
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