28 January, 2016, India: In order to execute its plan to enter into the Indian market, Chinese ecommerce giant, Alibaba has teamed up with India’s Paytm in an exclusive commercial partnership. According to the partnership, Paytm will become a launching pad for Alipay (Alibaba’s payment app) in India. Indian mobile payment app will execute this launch by using its domestic customer database.
However, in return, Paytm will be using Alibaba’s cloud computing arm called Alicloud and will deploy Alipay’s technology via Alicloud. With this development, both the companies are aiming to provide an easy shopping platform to two of the most populated countries of the world. Chinese consumers can pay Indian merchants with Alipay, while Paytm users in India can get at Alipay’s merchant base in US, UK, Japan and China.
Last year’s development suggests that Paytm is one of the preferred Indian sites of Alibaba. The company had invested heavily into the Indian mobile payment app and due to the continuous investment by China, now Paytm is valued at US $2.5 billion.