Stripe the Silicon Valley startup has entered into a partnership with digital payments firms WeChat Pay and Alipay. This would enable Stripe to let its merchants collect payment from hundreds of millions of buyers present in China.
The partnership will allow merchants on Stripe to unite payment process on the website through the online payment providers Alipay and WeChat Pay. Stripe is hopeful that this alliance will bring in more profits for the company. Moreover, it will increase its customer base in China. Alipay and WeChat Pay also stand to gain through the wide global merchant base of Stripe. China’s online payment through credit cards is a fraction of the total share of the market when it comes to online shopping.
Alipay is the flagship payment service provider in China. The company is an affiliate of the e-commerce giant Alibaba Group Holdings. It has over 520 million active users on the platform. Whereas, WeChat Pay has over 600 million users on its platform. It is under the control of Tencent Holdings. The company behind mobile gaming and entertainment.
In an interview the co-founder of Stripe, John Collison said that the partnership unlocks a major customer base for the internet firm. Moreover, it will empower the Chinese customers to have more choices with regards to their purchases.
The Stripe came into existence in the year 2010. In less than a decade it has spread across 25 countries. Moreover, this partnership with Alipay and WeChat Pay gives it further boost in the industry. Their model of business is simple. The merchants sell using their payment system and the company gets a small percentage of fee on each transaction.
Because of the ease of use that Stripe provides, it has sustained a growth which can rival some of the best in this industry. The company has seen steady business over the years and China is a fantastic opportunity for it to strike gold.
The reason for this alliance is the high demand for services in China. Moreover, it is one of the highest at present. Therefore, this alliance has come in at a critical juncture.