In order to satisfy the needs of both Australian and Chinese consumers, Commonwealth Bank of Australia and Alipay have entered into a partnership. Through this partnership, not only will Alipay be able to offer payment solutions to Chinese, and Australian retailers alike, but the company will also, for the first time have payments available in the region.
Prior to this partnership, citizens had to make use of Alibaba Group Holding LTD (NYSE:BABA) AliExpress. Although this is a good payment platform, it mainly focused on Chinese merchants to expand globally. Meaning it was difficult for Australian retailers In terms of foreign exchange
The benefits of this partnership
This partnership will change the need to make use of AliExpress and make life simpler for those that reside in Australia. The first thing to note is hat as per the agreement, Alipay will be entitled to make use of the payment infrastructure that is currently in place from Commonwealth Bank.
Through doing this, citizens throughout the region will be able to make purchases, in a simpler fashion. This includes purchases made from any of the Alibaba subsidiaries.
From the Commonwealth Bank point of view on this partnership, they will be entitled to make use of the Alipay platform in order to access the Chinese tourist target market. Studies have illustrated that per week, over 19,000 Chinese-based tourists visit Australia.
THE MORNING REPORT
Start your workday the right way with the news that matters most.
Your information is 100% secure with us and will never be shared Disclaimer & Privacy Policy
The way that Commonwealth Bank will access this market involves the implementation of those who make use of the Albert payment terminal. Those who make use of Alipay as a payment method will be able to make purchases through this terminal.
Further details regarding the growth of Alipay and Chinese markets
It is clear that Australia is one of the biggest markets of Alibaba, the parent company of Alipay. During one of the biggest online shopping events throughout the world. This event is called Single’s day promotion. Australia was ranked in the top 5 best-sellers during this event.
This partnership is not the first of which suggests that Alibaba is looking for global expansion. Alibaba has been making various investments, and partnerships with various companies to expand their reach outside of China. An example of such a company that partnered with Alibaba would be Uber.
