Alipay Suspends P2P Online Loan Partnership Program
Sohu IT, 12/19/12
On December 17, the product director for Chinese third-party payment processor Alipay revealed to Sohu IT that the company's compliance department recently decided to make changes to all of its peer-to-peer (P2P) cash-flow partnerships. Alipay will not renew any of the partnership agreements that have expired or are about to expire.
The spokesperson said that Alipay's compliance department is "redefining and exploring" the company's P2P intermediary loan service models in order to prevent systemic risks. "The intermediary debt model has been extremely controversial recently, and Alipay wants to avoid any risk to its reputation in the event of any fraudulent transactions or instances of illegal fund-raising." At least one partnership with an intermediary P2P lending company has concluded and will not be renewed.
The source denied that Alipay would attempt to wipe out all of its P2P partnerships. Rather, the source said, Alipay's newly established rural redevelopment division is currently in talks with organizations engaged in rural development - including Shenzhen-based Daibang Investment, which is dedicated to rural loans and rural public service efforts - about new partnerships.
Editor's Note: Online P2P loan platforms serve as intermediaries between individuals seeking to extend and secure loans.
Keywords: financing Daibang e-payment online payment Internet rural Alipay P2P third-party payment
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