Merging of business entity has been a headline in various regions in the world, and now a Chinese-based company has tied up with another company.
A year ago, Alibaba said that its US$1 billion purchase of a controlling stake in Lazada, the largest online shopping and selling marketplace in Southeast Asia – and a gateway to the region for the Chinese tech giant.
And now Jack Ma-led company is moving its plans one step forward.
Ant Financial, Alibaba’s financial affiliate, announced that it merged with HelloPay Group, the company behind HelloPay, Lazada’s online payment platform.
After the merger, HelloPay will be rebranded as Ant Financial’s online and mobile payment solution, Alipay.
In its respective markets, it will be known as Alipay Singapore, Alipay Malaysia, Alipay Philippines, and Alipay Indonesia.
The HelloPay team will also join Ant Financial in its Singapore office. After the merger, the Chinese financial services company will be in charge of operating the rebranded HelloPay payment solution.
However, all of HelloPay’s features and services will remain unchanged. The rebranded HelloPay will stay separate from Alipay and continue to provide payment services on Lazada’s platform.
“There will be no impact to HelloPay’s users and payment partners,” stated Douglas Feagin, senior vice president of Ant Financial, in a press release.
It can be remembered that last August, Lazada Indonesia co-CEO Florian Holm told an asian tech website about Alipay integrating with HelloPay, citing the former’s experience in payment security.
“It has massively better systems. It’s extremely important to have good fraud detection,” he said.
“Alipay is the biggest and most sophisticated wallet in the world,” Holm added.
According to Florian, customers still prefer cash-on-delivery payment methods. Integrating with Alipay, however, could help the Southeast Asian ecommerce company improve its online payment solution. Currently, HelloPay does not have a mobile app.
Jack Ma’s ant finance giant believe that the tie up with HelloPay Group does not tie in with the joint venture between Indonesian media conglomerate Emtek and Ant Financial, announced last week.
Moreover, HelloPay Group, Ant Financial also has a stake in Mynt, a financial services company in the Philippines, and Paytm, a payments company in India.
Just this week, the Chinese finance company also pushed its bid for Moneygram, a US-based money transfer firm, to US$1.2 billion.