The buyers funds would be custodised by Alipay and would only be released to the seller after the buyer has received the item. Ant Financial is opening up its technology capabilities to financial service institutions for them to solve problems in financial security, massive financial transactions, and blockchain applications announced Hu Xi, DeputyCTO ofAnt Financialand Partner ofAlibaba Group, at The Computing Conference. Ant Financial is not resting on the laurels even after conquering the markets with mobile payment and the money market fund it launched Sesame Credit in 2015. I have mentioned in previous occasions that the biggest threat to finance isnt coming from a fintech company but more likely from a popular mass market product / service company. Ant Financial has disrupted the financial industry more than anyone else. I have only covered the mobile payment, money market fund and micro-lending. The lack of trust was an issue. As of September 2017, Ant Financial unveiled its facial recognition payment technology through its Alipay services. Coupled with Alibabas strong e-commerce presence, Ant Financial will have access to a mass customer base and fuel its adoption of all its products. A believer of the Factor-based Investing approach and runs a Multi-Factor Portfolio that taps on the Value, Size, and Profitability Factors. After finding success in mobile payment, Alipay found itself in a world of possibilities technology can do a lot more to improve the state of the financial industry. This legitimised Alipay as a payment solution provider and coupled with the technology, it revolutionalised the way people make payments in China including the enablement of cashless payments in the stores. 3 megatrends to invest in for the next 30 years, Lendlease Global Commercial REIT expects overall retail sector and leasing demand to remain subdued, Frasers Centrepoint Trusts DPU declined by 26.1%, 7 hottest Fintech companies you can invest in, 56 Singapore companies that are listed in Hong Kong, BigFatPurse Pte Ltd71 Ayer Rajah Crescent #03-06Singapore 139951Tel: 65-9812 0411Email: admin@drwealth.com, Intelligent Investors ImmersiveGrowth Dragons Investing CourseEarly Retirement MasterclassSaaS Hypergrowth Investing8-Figure Trading BlueprintCryptocurrencyAll Course, Growth Dragons Newsletter Most people would think that Alibaba owns Ant Financial. It isnt confirmed yet! We do not have the financials and an IPO price to determine the deal is a reasonable one but we can conduct some qualitative analysis by looking at the history and the business model of Ant Financial. Alipay was rebranded as Ant Financial Services in 2014 as their financial services went beyond payments. Alipay held more than 50% market share in China while Tenpay (the company powering WeChat Pay) had close to 40% in 3Q2019. The new announcement marked the companys effort to speed up the initiative in providing standardized and comprehensive technical solutions to all the financial services. Alipay grew in popularity and its app has been a mainstay in many smartphones because of its utility the user could pay for almost everything in life QR code payment in the stores, bills payment, money transfer, prepay mobile phone top-up, bus and train ticket purchase, food order, ride hailing, insurance selection and of course, pay for items on Taobao and Tmall. But Ant has made an impact in insurance too, signing up 100 million users under Xiang Hu Bao within the first year of its launch. The shareholders naturally felt unfair especially when Alipay has turned into a success. Jack arrived with an agreement with the shareholders in 2011 if Alipay goes public, Alibaba will be paid at least $2 billion but no more than $6 billion, plus 37.5 per cent of Ant Financials pre-tax earnings before the IPO. Alibaba was focused on B2B and Taobao was launched to move into the C2C space. However, the Alibaba affiliate is gradually finding a new position as a technology services company. Conducts the flagship Intelligent Investor Immersive program under Dr Wealth. This site, like many others, uses small files called cookies to help us improve and customize your experience. Yue Bao was launched in 2013 as a money market fund and it became wildly popular. But the challenges didnt stop there. It also runs Sesame Credit, a third-party credit rating system. Huabei (Ant Credit Pay) a virtual credit card type of product that facilitates credit payments, MYbank a private online bank that lives entirely on the cloud, Jiebei (Ant Cash Now) a consumer loan service, Ant Fortune a comprehensive wealth management app, ZOLOZ a global biometric-based identity verification platform, This page was last edited on 4 November 2020, at 23:55. This led to the creation of the first version of Alipay, which was an escrow service. Alipay a mobile wallet app supports make and accept payments. China has the high adoption of cashless mobile payments and most countries are just playing catch up. Net Net Hunting Newsletter Mybank has lent 2 trillion to 16 million small companies in 4 years. Ant Financial has flirted with the IPO idea a few times in the past. Reach her at lixin@technode.com. Open technology capabilities are expected to become the core monetization model of Ant Financial, according to the firm. But Ant has made an impact in insurance too, signing up 100 million users under Xiang Hu Bao within the first year of its launch. Nio, Xpeng, Li Auto: your cheat sheet to China's listed Tesla rivals, UPDATED: Ant Group IPO delay and Jack Ma's ill-timed speech, Binance in trouble, blockchain security standard: Blockheads, Meituan mulls second IPO, Alibaba inks Farfetch deal: Retailheads, Reports of Huobi COO arrest spurs whale transactions as token sinks, VC Roundup | One of Chinas most experienced investors talks VC trends, EMERGE 2020 | Young consumers and buzz boost foodtech in China, Trump backs off Ant Group blacklisting: report, UPDATED: Ant Group IPO delay and Jack Mas ill-timed speech, Proudly powered by Newspack by Automattic. Alipay has moved beyond China and offered its mobile payment to other countries such as Singapore, Japan, South Korea, U.S., Canada, U.K, Italy, Iceland, Norway, Australia and New Zealand. Sesame Credit assigns Sesame Scores to users based on creditworthiness, which is based on the following five factors: This is an application of big data in finance and Alibaba being the largest e-commerce company will have more data points than any other banks. Taobao has a massive customer base and the users are comfortable transacting via Alipay. Jack Ma knew that the Chinese government will never grant a license to Alipay because of its foreign ownership. Jack Ma wanted to compete and win. They definitely want a piece of it. But it wasnt easy to get the transactions going because the buyers and sellers were not familiar with this new way of commerce. After opening up its payments services to a wide range of online and offline businesses, Ant Financial announced an Internet Booster plan in 2015 to support the digital transformation of traditional financial institutions by sharing Ant Financials technological capabilities. 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