Samsung partners with Alibaba on mobile payments in China

Samsung partners with Alibaba on mobile payments in China. May. 21, 2016 08:59. by 김지현기자 jhk85@donga.com.

Samsung Electronics has joined hands with its potential rival Alipay in order to take over China's rapidly growing mobile payment market. Samsung Electronics announced on Friday that it formed a strategic partnership with Alipay, the biggest mobile payment platform in China.

Samsung Pay users in China can now make a payment through Alipay by using Samsung Pay's application. Just like a credit card and a debit card, once users register their Alipay account into their Samsung Pay account, they can pay without opening the Alipay application. Samsung Pay customers can use an Alipay QR code at any store in China that accepts Alipay by swiping their smart-phone screen from the bottom to the top.

Despite its launch Samsung Pay in China in March, Samsung Electronics must have collaborated with Alipay probably because Chinese businesses have already dominated the market. Since its service from 2004, Alipay has more than 450 million users in China and over 200 financial institutions as partners. Alipay is the largest in the market, accounting for 71 percent of China's mobile payment market in the last quarter last year.

Apple started its service Apple Pay in China in February, but has not been successful. "Apple has put a lot of effort to make Apply Pay survive in the market," the Korea International Trade Association's Beijing office explained. "However, Chinese businesses have already seized the market with subsidy packages and discount benefits."