Alipay Establishes New Rural Business Department
Sohu IT, 12/19/12
Chinese third-party payment processor Alipay has announced the establishment of a rural business department in order to expand the reach of the service into non-e-commerce sectors. The Alipay "New Rural Business Department" was established in July with the goal of bringing quick and easy payment support to the rural marketplace.
According to a report from Chinese finance site 21cbh.com, Alipay is in talks with a number of rural-business related firms about possible partnerships, including microlending website Daibang.com.
According to Daibang founder Yin Fei, Daibang is currently in discussions with Alipay to partner on a loan monitoring system to track the use of Daibang loans. As explained by Yin, lenders or donators provide microloans to farmers, but "Famers will tell us they used the money to purchase fertilizer and we have no way to monitor this. We would like to, through working with Alipay, be able to move up the product chain and purchase fertilizer directly from the factory for farmers."
Through this process Daibang looks to guarantee that their microloans will be put to good use and achieve three goals: minimize legal and debt default risks, reduce labor costs, and improve microloan payback statistics.
According to Alipay, the company's rural business department is approaching the rural payment market from two different angles, namely, through partnerships in both rural payment and rural finance services. In terms of rural payment, Alipay plans to partner with major agricultural companies and telecom product distribution outlets to provide online and mobile payment training for rural users and increase online payment penetration in rural areas. In terms of rural finance, Alipay hopes to help rural financial service providers through new methods of payment developed by the company.
Keywords: Yin Fei Daibang Internet rural Alipay mobile payment third-party payment online payment agriculture e-payment
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