Ant Group's Alipay Hits 100 Million Users, Unveils New Chip To Power Fintech Expansion

Ant Group’s mobile payment platform, Alipay, reported 100 million users for its tap-and-pay service, launched on June 7, 2024.

The service is available in over 400 mainland Chinese cities and supports over 5,000 shopping brands.

Alibaba Group Holding BABA introduced the cashless society to China with Alipay’s QR code and facial recognition function to facilitate payments, similar to Visa Inc V and Apple Inc AAPL Apple Pay, SCMP reported last Friday.

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Alibaba and Ant Group founder Jack Ma expressed his conviction in the next two decades of Ant at the 20th anniversary of Alipay in December.

Ant Group boosted its global presence through its digital platform, Alipay+.

Ant’s early global strategy, focused on Southeast Asia, saw investments in Singapore’s 2C2P and South Korea’s Kakao Pay, which now facilitate their international growth. The company also expanded into emerging markets like Sri Lanka and Cambodia.

It established European partnerships, such as with Italy’s Tinaba and Nexi, and in the Middle East through Dubai Duty Free. They are focused on large tourism markets like Japan, Thailand, and Singapore while targeting European, Latin American, and Middle Eastern regions to continue growing their merchant coverage.

Prior reports indicated that Mastercard Inc MA would enhance its cross-border remittance capabilities by partnering with Alipay. Separately, Ant Group tapped Shanghai Fudan Microelectronics to develop integrated circuits for the service.

On Friday, the companies announced a new chip compatible with every smartphone and can work in extreme temperatures from minus 40 to 85 degrees Celsius. Ant Group has placed orders for over 10 million units, with commercialization by the second half of 2025.

Ant Group initiated a global recruitment plan to work on potential breakthroughs in artificial general intelligence (AGI) and next-generation fundamental models.

Ma relinquished his corporate roles and maintained a low profile since Chinese regulators scrapped Ant Group’s initial public offering and initiated an antitrust crackdown on domestic giants, including Alibaba. However, he remains a shareholder.

Lately, Ma has frequently appeared at Alibaba offices as the Chinese e-commerce juggernaut eyes a turnaround and aspires to evolve into an AI powerhouse.

At Alipay’s 20th anniversary in December 2024, Ma emphasized the importance of AI. Ma also attended the symposium chaired by President Xi Jinping in Beijing.

Price Action: BABA stock is down 2.07% at $117.80 at last check Monday.

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