China's Alipay and India's Paymt sign mobile payments deal

Chinese e-commerce giant Alibaba has signed an exclusive commercial partnership deal with Indian mobile payment app, Paymt, in its bid to enter the Indian market. Paymt will help Alibaba's online payment platform, Alipay, gain entry through its domestic customer database. In return, Alibaba will allow Paymt to deploy Alipay's technology via its cloud computing arm, Alicloud. The agreement will allow both companies to integrate their existing platforms with the aim of providing an easier shopping experience for consumers in the world's two most populous nations: Chinese customers can pay Indian merchants with Alipay while Paytm users in India can access Alipay's merchant base in China, Japan, US and UK.

28 January, 2016, India: In order to execute its plan to enter into the Indian market, Chinese ecommerce giant, Alibaba has teamed up with India’s Paytm in an exclusive commercial partnership. According to the partnership, Paytm will become a launching pad for Alipay (Alibaba’s payment app) in India. Indian mobile payment app will execute this launch by using its domestic customer database.

However, in return, Paytm will be using Alibaba’s cloud computing arm called Alicloud and will deploy Alipay’s technology via Alicloud. With this development, both the companies are aiming to provide an easy shopping platform to two of the most populated countries of the world. Chinese consumers can pay Indian merchants with Alipay, while Paytm users in India can get at Alipay’s merchant base in US, UK, Japan and China.

Last year’s development suggests that Paytm is one of the preferred Indian sites of Alibaba. The company had invested heavily into the Indian mobile payment app and due to the continuous investment by China, now Paytm is valued at US $2.5 billion.

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