The Hanoitimes - Alipay, an online payment platform established by Alibaba Group and its founder Jack Ma has signed an strategic agreement with the National Payment Corporation of Vietnam (NAPAS).
NAPAS is the first and unique intermediary payment service provider being granted license by the State Bank of Vietnam (SBV) of providing switching and electronic clearing and settlement services in Vietnam. NAPAS’s majority shareholders include SBV and 15 great commercial banks in Vietnam. NAPAS is operating and managing an inter-bank connection system with 16.800 ATM, 220.000 POS, 90 million domestic cards of 43 domestic commercial banks and foreign banks being operating in Vietnam. NAPAS also provides e-commerce services to more than 200 merchants of airlines, telecommunications, hotels, tourism and other electronic payment services.
With the task complete retail payment infrastructure being appointed by State Bank of Vietnam, NAPAS is implementing and building the standard of the domestic chip card for the entire market, building system of electronic clearing automation for retail transactions – ACH research, propose solutions for the development of non-cash payment in Vietnam.
Alipay overtook PayPal as the world's largest mobile payment platform in 2013.
Meanwhile, Alipay is a third party mobile and online payment platform, established in 2004 by Alibaba Group and its founder Jack Ma. Alipay overtook PayPal as the world's largest mobile payment platform in 2013. In the fourth quarter of 2016, Alipay had a 54% share of China's US$5.5 trillion mobile payment market, by far the largest in the world, although its share fell from 71% in 2015 as its rival Tencent's WeChat Pay was rapidly catching up. As of September 2017, Alipay unveiled a facial recognition payment service. Alipay is considered a safe way for customer to make transaction when they can check information with regard to the product before making payment to buyers. This is also a way to protect customers when shopping online in China through form of C2C (Customer to Customer) or even to control the product quality through B2C (Business to Consumer).
Through the signing of strategic agreement with NAPAS, Alipay will expand its operation on the Vietnam’s online payment market. As of present, in Vietnam, Alipay is limited to applying for Chinese users travelling abroad, and developing application to serve the purpose of Chinese tourist in Vietnam.
Jack Ma talks with Vietnamese students.
Previously on November 6, Jack Ma has come to Vietnam and had a meeting with the Prime Minister Nguyen Xuan Phuc. He also had had talk with 4000 young Vietnamese students upon the Prime Minister’s request to inspire young Vietnamese. As Vietnam is planning strategy to develope e-commerce in period 2016 – 2020, with objectives such as 30% of population to shop online, as well as the value through e-commerce reaches an average of 350USD per person per year. Jack Ma said, these are ambitious objectives, which need to be supported by facilitating cashless payment. This will also reduce transaction cost for enterprises and corruption. Besides, with the young population of Vietnam, in the upcoming 5 – 10 years, Vietnam will face challenges of creating jobs, and according to Jack Ma, the best solution is to promote e-commerce. Along with this, Vietnam need to develop logistics, reform custom procedures, trade investigation, facilitate cross border e-commerce and the model of business to customer (B2C).