Ant Group, the fintech associate of Alibaba, has quite subtly been creating a global platform for cross-border transactions by teaming up and funding third-party banks, e-wallets, remittance services and other related services.
The most recent addition is 2C2P, a Singaporean company that facilitates cross border payments in Southeast Asia. The recent announcement reveals that Ant Group will be the largest shareholder, but the exact amount is not disclosed. This allows 2C2P to be integrated with the Alipay+ platform.
Ceo and founder of 2C2P Aug Kyaw Moe explained that this partnership will help in the global expansion and will result in a grand exposure to the company. He also wants to add more payment options and e-wallets to the ecosystem.
Ant Group is choosing to invest in local companies than building its own from scratch to bypass the legal and regulatory compliances. Alipay has partnered up with many e-wallet giants such as GCash from the Philippines. TrueMoney in Thailand, KakaoPay in South Korea, Touch ‘n Go in Malaysia, bKash in Bangladesh, Dana in Indonesia and Klarna in Europe.
Alipay+ offers customers to pay with their local currency while making payments in a foreign country if Alipay+ or its affiliate e-wallets are supported by the receiving merchant. This gives away the need for currency exchange.
Several marketing aids are also incorporated that will help merchants to provide exclusive offers and discounts to improve their customer vase. This model has found great success in the Chinese markets.
By associating with foreign e-wallet players Alibaba aims to expand its services to foreign markers to face the need for cross border payments.
Shunning the IPO of Ant group by the Chinese government and the strict regulatory compliance is the main reason why Ant group is in search of a more lucrative market abroad to scale their growth.
Ant group claims that Alipay+ is active and continues to help more than 1 billion customers in Asia and 1 million-plus merchants via offline services in both Asia and Europe. Online customers on TikTok, Foodpanda, Apple and Google can also avail of this feature.