eBay Inc (NASDAQ:EBAY)‘s troubles are further exacerbated as news about Alibaba Group Holding Ltd (NYSE:BABA)‘s Alipay expanding into U.S. and Russia hits the market. In an article on The Straits Times more plans of Alibaba’s financial arm were revealed.
There are least two aspects in which, Zhejiang Ant Small & Micro Financial Services Group, Alibaba Group Holding Ltd (NYSE:BABA)’s financial arm is set to undermine eBay Inc (NASDAQ:EBAY)’s PayPal. Firstly, the subsidiary is planning to speed up its international expansion as, according to the article, it plans to sell shares sometime later in the future. Hence, the pace for this expansion is going to pick up even more in the future. Secondly, Alibaba Group Holding Ltd (NYSE:BABA)’s financial arm is also reorganizing itself into six business units to concentrate on different regions of the world that it is targeting.
Before Alibaba’s threat to eBay Inc (NASDAQ:EBAY), Twitter Inc (NYSE:TWTR)’s new buy button and Apple Inc. (NASDAQ:AAPL)’s new payment method for mobile platform, Apple Pay, were already digging a hole into PayPal’s revenues, or at least threatening to do so in future.
eBay Inc (NASDAQ:EBAY) recently announced to spin off its payment platform PayPal, late last month. Although, the news was received positively by the stock market with a surge in the e-commerce concern’s share price, the stock has been declining ever since. News of Alibaba Group Holding Ltd (NYSE:BABA)’s Alipay expansion plans may even accelerate this fall.
Online payment, especially mobile payments is one sector that many tech companies are vying for. As consumers continue to shift their internet usage to mobile devices, Twitter, Apple, and Alipay Wallet, the mobile app for Alibaba Group Holding Ltd (NYSE:BABA)’s payment method, are trying to win customer loyalty and trust.
Alibaba has also an added advantage of tapping on the online payments within China. Although Chinese citizens making use of online payments is growing fast, there is still more room for growth as a vast majority of the population still remains unaccounted for. According to the article, Alibaba Group Holding Ltd (NYSE:BABA)’s Alipay plans to include 100 million new users from rural China within the next two years. Regulation, language and an understanding of the Chinese culture are few of the problems that Alipay’s competitors face as far as their objectives of expanding in China are concerned.
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