30 August 2007
Alipay, Alibaba Group’s online payment subsidiary has introduced a service which enables foreign currency transactions between overseas firms with China’s 163 million consumers.
An initial partnership has only been struck with three key Asian retailers but there are plans to expand into more than 100 foreign ‘etailers’ by the end of 2007. There is also a plan to allow overseas consumers to purchase from Chinese firms online, opening up the market worldwide.
According to the China Market Research Group, Chinese shoppers spend $6bn on luxury items every year, but high import duties mean the bulk of that spending takes place abroad.
Managing Director of the analyst group, Shaun Rein comments:
Alipay will now let China's emerging 250m-strong middle class buy whatever items they want that are available in the world. They no longer have to travel abroad to buy items, which is very important for the middle class who cannot always afford to travel overseas. But they can now buy what they see on the Internet and in its magazine.
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