Chinese e-commerce giant, Alibaba has a new plan in the works to push e-commerce further than any other country in the world. Though the initial idea itself isn't something that is new or hasn't been already implemented by other auto retailers, there are two key points that set it apart from the crowd: 1) access was controlled through Alibaba’s own credit system, and 2) it was all done through existing mobile channels.
It’s kind of hard to believe how quickly China has moved its payments from cash to digital. Within a few years, it went from a country where you needed cash to a country where you need a mobile phone to pay using QR codes; it skipped the credit card phase completely. This shift was driven by the launch of platform-specific payment systems, like WeChat Pay and Alipay.
Alibaba’s Alipay quickly became dominant, as the company was able to use its payments arm to facilitate transactions between sellers and buyers, holding cash in escrow. This rapid scale gave it insight into the spending patterns of Chinese consumers (and Chinese travelers abroad). This data could then be used to judge the creditworthiness of an individual, much in the same way a credit bureau receives information about consumers from many parties.
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