Stripe, a Silicon Valley startup has closed a deal with both Alipay and WeChat to widen its Chinese market access. Sellers who are using Stripe on their transactions can now accept payments via Alipay and WeChat Pay on own platforms. This enables them to easily transact with Chinese customers.
Alipay and WeChat Common in China
These two companies dominate the e-commerce industries in China. Records show that each company has over half a billion users. The US digital payments firm decided to make the deal to aid worldwide retailers to ease transactions with Chinese clients.
Alipay, its parent Ant Financial, is the major financial affiliate of e-commerce titan Alibaba Group Holdings. The firm has more than 520 million users. On the other hand, WeChat Pay (from entertainment and social network firm Tencent Holdings) has over 600 million users.
The Silicon Valley startup aspires that the alliance will help improve its revenues as it enters the vast Chinese consumer market.
Partnership Effective Sunday
The partnership formally began on Sundsay and it allowed online merchants to use Stripe and to assimilate the said payment apps to begin accepting payments from Chinese buyers.
John Collison, Stripe’s president and co-founder, said in a statement, “If you are an internet business this unlocks a new vast customer base. In turn, Chinese consumers will have expanded choice as to which international online merchants they can purchase products and services from.”
Stripe’s Rising Popularity
Stripe is founded by brothers John and Patrick Collison back in the year 2010. The company is intended to provide technology that will give merchants the capability to accept payments online in 25 different countries. It earns money by charging a fee per payment transaction processed through its platform. Since it is easy to use, it gained popularity with financial techbology companies existing worldwide.
Collison stated, “If we can help a business double their sales, then it doubles our revenue from that business.”
Stripe has a market reputation of being one of the Fintech companies constantly in search for ways to reinvent the payments landscape by maximizing the use of digital technology but making it user-friendly and uncomplicated to its users.
Souheil Badran, Alipay President for North America, said in an interview, “Demand for services from Chinese consumers is at all-time high. The new partnerships will connect them to hundreds of thousands of Stripe-powered businesses around the world.”
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