Alibaba group holding limited is a Chinese e-commerce multinational company formed back in 1999. Apart from handling business to business, costumer to costumer, and business to costumer sales services via web portals, it also provides electronic clouding, search engine services and electronic payment services. The company made huge revenue of $120 Billion back in 2002 that is 1.1trillion yuans. Alibaba group holding limited made revenue of 52.50 billion yuans in 2014. It has total assets of 111.54 billion yuans, and has 26,845 employees working for it. It has subsidiaries of Alipay, Guangzhou, Evergrande F.C, TaoBao, Tmall and UC web. With a huge presence in China the company is establishing a strong footing in other parts of the world such as USA and India. Alibaba was recently in talks with snapdeal and is planning to enter India by end of 2014.
It has been announced by a senior executive of Alibaba holding group limited that the company is in process of making a deal with the American overseas multinational technology giant Apple Inc. (NASDAQ:AAPL) According to him the company will soon settle a payment alliance with Apple Inc. The deal could be beneficial for both companies and will establish new ties between the two countries opening doors for huge investments in China. Some analysts have also pointed out the possible and technical regulatory hurdles as well, but the Chief Executive of Alibaba limited holding group seems determined.
Mr Ma in a conference with Chief executive of Apple Inc. announced that the company raised $25 billion in the World’s biggest ever Initial Public Offering last month and is very much interested in partnering up with iPhone maker Apple Inc for electronic payment services. Tim Cook who was also present at the meeting said that Apple will soon discuss terms of partnership with Alibaba, which are unspecified yet. The deal will be impressively large and beneficial for the e-commerce giant, which controls 80% of the country’s online shopping market and was valued around $302 billion last year.
Alibaba payments subsidiary Alipay already controls huge amounts of online transactions and now it making efforts to expand to the grass root level from restaurants to shops, theaters and taxis. Analysts say this deal will allow iPhone users to pay their payments with a single tap on their phones using Apple Pay. Apple Inc’s Apple pay, which was recently launched, in collaboration with Alibaba group holding Limited’s Alipay would give Apple Inc an access to Alipay’s powerful transaction system that already handles millions of consumers and businesses worldwide.
Apple Pay is available on iphone 6 and iphone 6 plus and a few other Apple devices; the system uses a smart chip technology that emables users to pay by bringing their phones near a reader, but it isn’t available in China yet. This deal will give Chinese users access to Apple Pay. The deal will also allow Alibaba to get access to information on payments made in brick and mortar stores via Apple Pay. According to analysts this deal will encounter great challenges and no one knows how the financial regulations will respond.
Mr. Ma also announced that Alibaba’s financial subsidiary would soon go public; however he did not announce any schedule for it.
