Alipay signs with Napas to take on Vietnam

Alipay, the leading online payment platform under Alibaba from China, signed a business co-operation agreement  with National Payment Corporation of Vietnam (Napas) on November 6.

 Alipay intends to co-operate with several fintech payment companies in Vietnam
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The burning question now is which Vietnamese market segment AliPay plans to conquer.

Further details regarding the business cooperation between the two parties have yet to be unveiled.

However, according to Alibaba’s spokesperson, the market penetration strategy of Alibaba would include resemblances with the firm’s strategy in Malaysia, Thailand, Singapore, and the Philippines.

Specifically, initially, Alibaba would provide market strategies for firms in the field of fintech payment, from trading and electronic payments to wholesaling, followed by business development, which later on expands into the retail market.

In Vietnam, Alibaba officially came into operation in 2008 and specialised in business consultation and digital shopping platforms.

Jack Ma, CEO of Alibaba also asserted that Alibaba intends to partner up with a few Vietnamese firms whose business involve fintech payments, such as providing a digital shopping platform for export companies with the latest technological applications, exploiting the segment of digital retailing aiming to reach individual customers, as well as cooperation in digital payments, the QR code application, and the direct-indirect co-operation with several fintech payment companies.

In addition, Alipay in Vietnam will provide an online application for overseas Chinese travellers and Chinese travellers currently staying in Vietnam. Alipay’s domestic application in China at present only targets the payment services on Alibaba’s websites.

On November 6, Le Minh Hung, Governor of the State Bank of Vietnam (SBV), stressed the potential of trading and digital payments in Vietnam as the country appears to be a nurturing environment for such activities.

SBV welcomes business concepts and strategies as well as the further co-operation with Alibaba in Vietnam.

Currently, SBV has licensed 24 non-bank financial institutions to provide intermediary payment services. So far, more than 40 commercial banks have participated in the co-operation with these 24 organisations to implement services.

Regarding the innovation of payment methods, fintech payment is a fast-paced technology that supports payments in banking and financial services, which aids transactions as well as saves time on conducting transactions.

Alipay is the leading third-party mobile and online payment platform which was established in Hangzhou, China, in February 2004 by Alibaba and founder Jack Ma.

National Payment Corporation of Vietnam (Napas) is the first intermediary payment services provider being granted a licence by SBV to supply switching and electronic clearing and settlement services in Vietnam.

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By Sam Luong