By Kim Tae-gyu
Alipay, China's largest online payment service provider, is expected to set up a joint venture here in the near future in line with its founder's remarks as the outfit recruited employees here last year, observers said Tuesday.
Yet, it remains to be seen when it will happen and who would Alipay partner with. Thus far, Hana Financial Group has been on the lips of experts but the banking entity refused to confirm.
The joint venture, which is likely to be called Korea Pay, will try to replicate Alipay's huge success in Korea providing third-party online payment services.
Launched in China in 2004 by Alibaba Group and its founder Jack Ma, Alipay accounts for about half of China's online payment market based on almost half a billion users.
Alipay has tried to tap into global markets and Korea has been touted as one of the major targets _ the payment platform opened its first overseas customer center in Seoul last November.
The center is geared toward offering a variety of services to Chinese visitors to Korea, whose number topped 6 million in 2015.
At a press conference in late 2015 here, Ma said he vied to provide online payment services to Koreans through establishing Korea Pay together with domestic partners.
If Alipay fully commits to Asia's fourth-largest economy, local competitors would have to sweat including Samsung Pay, Kakao Pay and the upcoming Naver Pay.
"Up until now, Korean shop owners or firms could sell products or services via Alipay in transactions with Chinese tourists. Accordingly, its impact has been limited," Samsung Securities analyst Chang Hyo-sun said.
"However, in case Korean end users can take advantage of the platform in domestic and overseas purchases, things will be different. It would affect the business quite a lot because Alipay has a large number of contracted sellers."
Alipay is designed to temporarily keep transaction payments for any goods and services between buyers and sellers and pay them to sellers after transactions are completed.
People can make payments for online purchases through Alipay by depositing a certain amount of money into Alipay accounts in advance, or by directly linking their credit or debit cards to Alipay accounts.
When contacted, an official of Alipay said nothing has been decided yet.
Yet, a local newspaper reported of late that Alipay sent emails to its partners in which it disclosed its plan to set up a joint venture called Korea Pay this year.
The Alipay official refused to confirm the report.
Alipay, China's largest online payment service provider, is expected to set up a joint venture here in the near future in line with its founder's remarks as the outfit recruited employees here last year, observers said Tuesday.
Yet, it remains to be seen when it will happen and who would Alipay partner with. Thus far, Hana Financial Group has been on the lips of experts but the banking entity refused to confirm.
The joint venture, which is likely to be called Korea Pay, will try to replicate Alipay's huge success in Korea providing third-party online payment services.
Launched in China in 2004 by Alibaba Group and its founder Jack Ma, Alipay accounts for about half of China's online payment market based on almost half a billion users.
Alipay has tried to tap into global markets and Korea has been touted as one of the major targets _ the payment platform opened its first overseas customer center in Seoul last November.
The center is geared toward offering a variety of services to Chinese visitors to Korea, whose number topped 6 million in 2015.
At a press conference in late 2015 here, Ma said he vied to provide online payment services to Koreans through establishing Korea Pay together with domestic partners.
If Alipay fully commits to Asia's fourth-largest economy, local competitors would have to sweat including Samsung Pay, Kakao Pay and the upcoming Naver Pay.
"Up until now, Korean shop owners or firms could sell products or services via Alipay in transactions with Chinese tourists. Accordingly, its impact has been limited," Samsung Securities analyst Chang Hyo-sun said.
"However, in case Korean end users can take advantage of the platform in domestic and overseas purchases, things will be different. It would affect the business quite a lot because Alipay has a large number of contracted sellers."
Alipay is designed to temporarily keep transaction payments for any goods and services between buyers and sellers and pay them to sellers after transactions are completed.
People can make payments for online purchases through Alipay by depositing a certain amount of money into Alipay accounts in advance, or by directly linking their credit or debit cards to Alipay accounts.
When contacted, an official of Alipay said nothing has been decided yet.
Yet, a local newspaper reported of late that Alipay sent emails to its partners in which it disclosed its plan to set up a joint venture called Korea Pay this year.
The Alipay official refused to confirm the report.
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