Global e-commerce company Alibaba Group has announced they are to invest RMB5 billion ($732 million) in Alipay, China’s largest online payment network.
The investment, which will be spread over five years, is designed to upgrade the payment solution for e-commerce in China and around the world.
“Online payment will continue to play an ever-growing and significant role in the development of e-commerce as well as the stimulation of consumer demand,” said Lucy Peng, CEO of Alipay and CPO of Alibaba Group. “Consumers expect a safe, convenient and affordable globalised payment platform. That’s what we have offered since the creation of Alipay, and with this investment we aim to continue playing a fundamental role in the ongoing development of e-commerce in China and around the world.”
The money will be used to enhance infrastructure security; develop products to improve convenience for customers; grow consumer accounts; build a comprehensive network of merchants; and retain and attract top-tier talent from the payments industry.
“A truly first-rate payment infrastructure must be one that offers unquestionable security and an excellent user experience. It must be universally accepted by consumers and merchants. Only a platform with these qualities will be able to meet the growing demands of the hundreds of millions of consumers embracing retail e-commerce,” said Peng.
Alipay will also commit additional resources into online safety and security, risk and data management, as well as innovate in new technology areas such as mobile payments.