Business Intelligence on Retailing, Franchising, and Consumerism in China

Alipay Begins Working In China With Taobao Rival has announced plans to cooperate with Alipay, an online payment provider and sister company of's competitor — which is owned by

Users will be able to use Alipay's payment tool for online shopping on

Alipay and are two core businesses of Alibaba, and Alipay has played an important role in Taobao's fast growth. Alibaba seems to want to create Alipay into an independent third-party Internet payment platform, which should have more vitality than a closed payment platform.

The cooperation enables to provide an additional payment method for its users. Before this cooperation, Amazon provided such payment means as cash on delivery, credit card payment, debit card payment, postal payment and bank transfer. Taobao says that Amazon's cooperation with Alipay won't affect Taobao's B2C business as there is almost no competition between Taobao and traditional B2C companies.

At present, is testing the Alipay functions. It is expected that the function will be formally released after the test is done in July.

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