The rise of China’s technological prowess is reflected in the size of its tech companies: Tencent is among the world’s top ten biggest company by market value, while Alibaba completed the world’s biggest IPO two years ago when it listed in New York.
Ant Financial, the financial services affiliate of Alibaba Group Holding Ltd., has made a strategic investment in Chinese bike sharing firm ofo, after the pair formed a partnership last month.
China’s two leading Internet and mobile payment tools, Alibaba’s Alipay and Tencent’s Wechat Pay together enabled US$2.9 trillion in Chinese digital payments in 2016, representing a 20-fold increase over the past four years, says a new United Nations’ study. "There is a quiet revolution underway and we know, firsthand, that our services are making a real difference to hundreds of millions of consumers. But, as this groundbreaking UN report highlights, this revolution is only just beginning," says Eric Jing, CEO …
Payments on messaging and e-commerce platforms set to increase China’s GDP by $236 billion by 2025, unlocking new economic opportunities for people and small businesses
BEIJING and NEW YORK, April 20, 2017 /PRNewswire/ — A new UN study reveals that Alipay and WeChat Pay enabled US$2.9 trillion in Chinese digital payments in 2016, representing a 20-fold increase in the past four years. The data shows that digital payments, using existing platforms and networks, provide access to a wider range of digital financial services, expanding financial inclusion and economic opportunity throughout China and neighboring countries.
The new report by the UN-based Better Than Cash Alliance, Social Networks, E-Commerce Platforms and the Growth of Digital Payment Ecosystems in China – What It Means for Other Countries, contains key lessons to help other countries include more people in the economy by transitioning from cash to digital payments. This shift could increase GDP across developing economies by 6 percent by 2025, adding US$3.7 trillion and 95 million jobs, according to a McKinsey Global Institute report.
"Social networks and e-commerce platforms are growing in every economy, whether large or small," says Ruth Goodwin-Groen, Managing Director at the Better Than Cash Alliance. "In China digital payments are thriving from these channels, bringing millions of people into the economy. This matters because we know that when people – especially women – gain access to financial services, they are able to save, build assets, weather financial shocks, and have a better chance to improve their lives."
"Widening access to financial services has always been at the heart of Ant Financial’s mission and we are proud to have empowered more people to save, invest and gain access to capital. There is a quiet revolution underway and we know, firsthand, that our services are making a real difference to hundreds of millions of consumers. But, as this groundbreaking UN report highlights, this revolution is only just beginning. We see tremendous potential to bring many more people into the financial system, in China and markets around the world," says Eric Jing, CEO of Ant Financial Services Group, which operates Alipay.
Key findings from the report:
- More people have opportunities to save and invest. Platforms such as Alibaba’s Yu’e bao make investing money into diverse sets of financial products more accessible for low-income populations. This product allows them to invest the money left on digital accounts, leading incrementally to long-term savings. From 2013 to 2016, Yu’e bao has grown to manage US$117 billion and is now serving over 152 million customers.
- Digital finance helps dramatically increase access to capital for small merchants. As of September 2016, a total of RMB 740 billion (US$107.3 billion) had been lent on the Alipay platform to over 4.11 million small and micro enterprises and entrepreneurs.
- Big data generated through these platforms helps to build credit-scoring history and boosted access to credit, particularly for low-income financially-excluded populations. For example, Sesame Credit offers an alternative creditworthiness assessment by examining the credit history, financial behavior, contractual capacity, identity, and social networks of users.
The study also found both Alipay and WeChat are expanding beyond China and investing in major fintech and payments providers. They are joined by other major communication platforms, utilizing existing social networks and e-commerce platforms to drive digital payments and financial inclusion. The report found opportunities especially strong in countries with a high smartphone uptake and collaboration between the private and public sectors:
- In South Africa, 78 percent of all internet traffic takes place over mobile channels – one of the highest rates in the world. However, despite the continued growth of adoption rates, only 15 percent of South Africans reported making a purchase on a mobile phone in the preceding month when surveyed in 2016.
- In India, both Ant Financial and Tencent have bought into the Indian mobile payments market, which is enjoying rapid growth under new regulation. Ant Financial and Alibaba invested up to $900 million in PayTM, as well as sharing staff and technical expertise. The result: PayTM has grown from 5 million to around 200 million users in just the last few years.
- Indonesia was the fastest-growing m-commerce market in the world in 2016, expanding 155 percent from January 2016 to January 2017. Some of this growth may be due to the release in 2015 of BBM Pay’s Instant Mobile Payments. The popular BBM chat app has over 55 million users in Indonesia and continues to develop.
- In South America, markets have the infrastructure necessary to build payment ecosystems similar to those seen in China. Fifty-nine percent of the South American population uses social media, and 52 percent connect with social media over their mobile phone. Yet the digital payments space remains fractured, and no payments provider has linked their service to these platforms in a significant way, or vice versa.
If you would like to learn more, the Better Than Cash Alliance has experts available to comment on the study.
Angela Corbalan, Head of Communications, [email protected], (+1) 917 224 9109
The Better Than Cash Alliance is a global partnership of governments, companies, and international organizations that accelerate the transition from cash to digital payments in order to reduce poverty and drive inclusive growth.
The United Nations Capital Development Fund (UNCDF) serves as the secretariat.
To learn more, visit www.betterthancash.org, follow @BetterThan_Cash.
Beijing-based bike sharing company ofo is now worth more than US$2 billion, CEO Dai Wei claimed during a media interview. The valuation is about double the company’s estimated worth only 40 days ago when it raised a US$450 million round with a valuation of just over US$1 billion.
After one month of resistance, China’s Ant Financial Services Group finally agreed to increase its offer to acquire U.S. money transfer company International Inc. to US$18 per share in cash, 36% higher than its initial offer and 18.4% higher than a rival bid from Euronet Worldwide Inc.
Ant Financial Services Group issued a long statement today defending its US$880 million deal to acquire U.S. money transfer company MoneyGram International Inc., after American payment firm Euronet Worldwide Inc. made a higher offer last month.
Tencent Holdings Ltd, eBay Inc. and Microsoft Co. have led a US$1.4 billion in Flipkart, India’s leading e-commerce platform. The financing round values the Indian online shopping company at US$11.6 billion post-money, below the company’s previous valuation of US$15 billion when it raised a US$700 million funding round in 2015. In addition, eBay announced that it would sell its Indian business to Flipkart, together with its US$500 million cash investments, in exchange for an equity stake in the company, according …
Warburg Pincus LLC has led a US$180 million series D round in Souche.com, a Hangzhou-based used car transaction platform. It is Warburg Pincus’ second investment in the Chinese used car space so far this year.
– China’s e-commerce giants, Alibaba and Tencent are set to grab the biggest piece of the pie from what Excon Fuji Securities calls a $65 billion upside
HONG KONG, March 29, 2017 /PRNewswire/ — The link between the next financial crises and the financial technology companies grows are as the later assumes more influence in the industry.
Chinese fintech is becoming the next big thing. With estimates $65 billion in sales by 2020, Tencent Holdings and Alibaba Group Holding are said to bag more than 50% of the market share, adding 60% to their market valuation.
Charles Hall, Director of Corporate Equities at Excon Fuji Securities said "this is not a blue-sky scenario; the $65 billion is the result of assuming only 10% market capture rate," Tencent and Alibaba’s value could increase by $326 to $391 billion, assuming they will capture 50%-60% of the $65 billion and a valuation multiple of 25 times earnings, according to Excon Fuji Securities.
Excon Fuji Securities expects the online payments market to increase by fourfold to $29.3 billion (CNY202 billion) by 2020. Tencent and Alibaba have a firm grip on the market, with 33% and 55% market share respectively. Online payments are already 50% of the fintech market.
Alibaba and Tencent can analyze consumer data acquired from online transactions to determine creditworthiness. Only 29% of the Chinese residents have credit rating as of now. Cross-selling is another benefit of online payments as consumers buy their cloths and groceries, and pay their utility bills online. Small businesses are also taking advantage of the online payments, 15% has borrowed online through e-commerce.
Corporate loans with 69% share of the lending market are keeping government owned banks busy and have no interest in consumer and small business loans, apart from mortgages, which account only for 15% of the market.
Tencent and Alibaba must play nice with the big banks, for a consumer to open a bank account, they must show up at the branch in person, this makes it difficult for Alibaba and Tencent to acquire consumer deposits and use it to extend loans. Although they have their own Internet banks, this comes as part of the government efforts to discourage Internet companies from taking too much financial risk.
Daniel Sharp, Head of Corporate Trading at Excon Fuji Securities noted "It is worth mentioning that even though Alibaba has the bigger market share now, Tencent is better positioned to take advantage of the China’s fintech boom. Alibaba owns only one-third of Ant Financial, Alibaba’s financial arm."
About Excon Fuji Securities
Excon Fuji Securities is a long-established private international investment brokerage. Providing private retail and corporate clients a broad range of financial markets and instruments. With over $7 billion (USD) under management and growing, our vision is to become a renowned industry leader in investment services throughout North America, Europe, Asia-Pacific and Australasia.
China’s Uber equivalent Didi Chuxing is considering whether to take a US$6 billion investment backed by SoftBank Group Corp. – which could be the largest private fundraising for an Internet company anywhere, anytime – as the Chinese ride sharing giant suffers volume declines after regulations were rolled out across the country.
Jiangsu province-based bike sharing company Youon Bike is making another try for an initial public offering on the Shanghai Stock Exchange, seeking to raise RMB598 million (US$86 million) by issuing 24 million shares. An earlier application was rejected in 2015. Founded in 2010, Youon Bike received an undisclosed amount of money from Ant Financial, the financial services affiliate of Alibaba Group Holding Ltd., and IDG Capital. However, Youon plans to end the funding, according to its IPO prospectus. The company …
ChinaEquity Group, a Beijing-based alternative investment firm, has led an series A+ round of around RMB100 million (US$14 million) in Wujie Space, a Beijing-based co-working space start-up.
China minted 76 new billionaires this year to the Forbes’ annual billionaire ranking, three times more than the U.S., where 25 new billionaires were added to the list, followed by 13 from India and 5 from German.
Asian alternative investment management firm PAG has led a US$100 million series C round in Chinese used-car online auction platform Chezhibao, the company announced today.
Ant Financial, the financial services affiliate of Alibaba Group Holding Ltd., has formed a strategic partnership with Beijing-based bike sharing company ofo to embed its personal credit rating system into ofo’s bike renting process, according to Chinese media reports.
Ant Financial Services Group’s US$880 million deal to acquire Dallas, Texas-based U.S. money transfer company MoneyGram International Inc. was put in question today after Kansas-based American payment firm Euronet Worldwide Inc. made a higher offer to acquire the target asset.
Chinese Internet giant Alibaba Group Holding Ltd. plans to double down on technology research and development to strengthen its core competence and support its vision of serving two billion people in the future. The e-commerce company unveiled its grand plan at its inaugural tech summit, called "New Technology, New Future" held at its Hangzhou headquarters on March 9, with over 5,000 engineers in attendance. Jack Ma, Alibaba’s executive chairman, reiterated his expectation that Alibaba will become the world’s fifth-largest "economy" …
Shenzhen-based installment payment e-commerce platform Fenqile aims to raise around US$600 million via an initial public offering on a U.S. stock exchange later this year, according to media reports citing insiders.
Think of China as the world’s factory no more. The Middle Kingdom has been rising in technological sophistication at light speed in recent years, fueled by top-down policy encouragement and venture capital funding. Ten years from now the world’s second biggest economy – though China should already be the world’s biggest economy long before that – could well be the leading power in the next exciting tech frontier: artificial intelligence (AI), projects Dr. Kai-Fu Lee, founder of Sinovation Ventures and …
Chinese e-commerce operator JD.com Inc. has agreed to divest all its shares in its financial services arm JD Finance for around RMB14.3 billion (US$2.1 billion), as the Internet finance unit dismantles a legal structure for overseas listing and plans a domestic IPO instead.
The venture capital fundraising war between two of China’s largest bike sharing companies intensified today on news that DST Global, an investment firm founded by Russian venture capitalist Yuri Milner, has led a US$450 million series D round in Chinese bike sharing company ofo.
Ant Financial, the financial services affiliate of Alibaba Group Holding Ltd., has teamed up with Chinese venture firm IDG Capital and Shenzhen Capital Group Co., Ltd to invest in a series A financing round in Youon Bike, a Jiangsu province-based bike sharing company, according to Chinese media reports. No financial details were disclosed. Founded in 2010, Youno claims that it has deployed over 800,000 bikes in 210 cities in China and has over 16 million users. The company has partnered …
Ant Financial Services Group, the financial services affiliate of Alibaba Group Holdings Ltd., has agreed to make a US$200 million strategic investment in Kakao Pay, a mobile payment solution provider of South Korean-based messaging platform company Kakao Corp., according to Ant and Kakao’s joint announcement.
Chinese mapping company AutoNavi Holdings Ltd., owned by Alibaba Group Holdings Ltd., has sued Didi Chuxing for unfair competition, alleging the ride-sharing company poached eight veteran engineers from its team and asking for RMB75 million (US$10.9 million) in damages, according to court documents.
Alipay’s technology to upgrade payment experience for local users of Mynt’s GCash
MANILA, Philippines and HANGZHOU, China, Feb. 20, 2017 /PRNewswire/ — Leading Philippine mobile operator Globe Telecom today announced that Ant Financial Services Group, one of the world’s leading digital financial services providers, has entered into a strategic partnership with Globe Fintech Innovations, Inc. (Mynt), a wholly-owned subsidiary of Globe Capital Venture Holdings (GCVHI) under Globe Telecom, and Ayala Corporation, one of the largest conglomerates in the Philippines, to accelerate financial inclusion and upgrade payment services in the Philippines.
Ant Financial, parent company of Alipay, and Ayala Corp have signed the definitive documents to enter into an investment via subscription to new shares in Mynt, which operates GCash and Fuse Lending. GCash is an internationally-acclaimed micropayment service which can be used to buy prepaid load, pay bills, send money, make donations, shop online, and purchase goods without the need for cash. Fuse Lending offers personal and business loans to unbanked and underserved Filipinos through the use of mobile technology, alternative data, and innovative credit scoring methods.
Subject to the closing of the transaction, Ant Financial, will own a substantial minority interest in Mynt while Ayala Corp will acquire a minority interest. GCVHI will hold the remaining equity interest.
The fresh capital infusion will help Mynt achieve its vision of becoming a world-class online and offline payment provider as well as scale up its mobile wallet services and quickly expand its digital financial services.
The deal represents Ant Financial’s first-ever investment in the Philippines and demonstrates the company’s confidence in Mynt and its management team to upgrade digital financial services in the region. With this partnership, Ant Financial, whose suite of digital financial services includes Alipay, will share with Mynt its know-how in using technology to provide equal access to financial services.
"A world-leading digital financial services provider has decided to partner with us. We are confident that having a strategic partner for Mynt will help fulfill our mission of providing financial services in a non-traditional manner that will benefit the majority of our population who are unbanked. With this partnership, we are set to democratize financial services in the Philippines," said Ernest Cu, Globe President and Chief Executive Officer.
"We look forward to working with Mynt’s innovative management team to provide simple, secure, low-cost and accessible digital financial services to unserved and underserved individuals and small and micro enterprises in the Philippines, thus helping individuals to live a better life and helping SMEs to grow and create more jobs," said Eric Jing, Chief Executive Officer of Ant Financial. "Ant Financial is committed to building an open, technology-based ecosystem with our partners."
"We are happy to be part of Mynt and capture the exciting opportunities in financial technology," said Ayala Chairman and CEO Jaime Augusto Zobel de Ayala. "We believe this is a great platform to redefine the country’s financial services space amidst a robust consumer market and an increasingly digital environment. With the combined strengths of Ayala, Globe, and Ant Financial, we believe we can help more Filipinos gain access to safer, more convenient, and extensive payment and lending platforms."
Leveraging the power of mobile and digital technology, Mynt is pioneering initiatives that provide financial services that previously were not available to most Filipinos. It is currently the biggest mobile money base in the Philippines with over 3 million registered customers and PHP1 billion worth of transactions per week. Mynt is also the only company in the Philippines that serves as a one-stop shop for fintech services for consumers, merchants, and organizations through GCash and Fuse Lending.
Globe Telecom is a leading full service telecommunications company in the Philippines, serving the needs of consumers and businesses across an entire suite of products and services including mobile, fixed, broadband, data connections, internet and managed services. Its principals are Ayala Corporation and Singtel who are acknowledged industry leaders in the country and in the region. For more information, visit www.globe.com.ph. Follow us on Twitter: http://twitter.com/talk2Globe and Facebook: http://facebook.com/GlobePH
About Globe Capital Venture Holdings, Inc.
Globe Capital Venture Holdings, Inc. (GCVHI) is a wholly-owned subsidiary of Globe Telecom which consolidates strategic non-core businesses of Globe such as Globe Fintech Innovations, Inc. (GFI) and Adspark Holdings, Inc. (AHI). It leverages on Globe Telecom’s strength as a telecommunications company while developing and growing identified new ventures.
About Globe Fintech Innovations, Inc. (Mynt)
Mynt is a fully-owned subsidiary of Globe Capital Venture Holdings, Inc.that provides innovative and first-in-world fintech solutions to consumers, merchants, and organizations. Its purpose is to enable financial access for consumers and merchants by disrupting traditional channels through digital financial technology services. It operates two fintech companies: GCash, a micropayment service that transforms the mobile phone into a virtual wallet for secure, fast, and convenient money transfer, and Fuse, a tech-based lending company that enables Filipinos to get personal and business loans through use of mobile technology, alternative data, and innovative credit scoring methods. For more information, visit www.mynt.xyz
About Ayala Corporation
Ayala Corporation is one of the largest and most diversified business groups in the Philippines. Founded in 1834, Ayala has maintained dominant positions in various industries in the Philippines. Ayala’s portfolio includes Ayala Land, the leading and the most diversified property developer in the country; Bank of the Philippine Islands, the first bank in the country and pioneering in major banking technologies in the Philippines; Globe Telecom, a major communications and broadband service provider in the country and; Manila Water, a regional player in water infrastructure services and development. Ayala also has interests in power generation, transport infrastructure, industrial technologies, healthcare, and education. Combined, the Ayala group has a market capitalization of $40 billion, comprising 20% of the market capitalization of the Philippine Stock Exchange Composite Index.
About Ant Financial
Ant Financial Services Group is focused on serving small and micro enterprises, as well as consumers. With the mission "Bring equal access to financial services to the world," Ant Financial is dedicated to building an open ecosystem of Internet thinking and technologies while working with other financial institutions to support the future financial needs of society. Businesses operated by Ant Financial Services Group include Alipay, Ant Fortune, Zhima Credit and MYbank. For more information on Ant Financial, please visit our website at www.antgroup.com or follow us on Twitter @AntFinancial.
Yum China Holdings, Inc., backed by private equity firm Primavera Capital Group and Ant Financial Services Group, opened 575 new restaurants during 2016, or a 5% net growth, to reach over 7,500 restaurants in total in the country, it said today.
Chinese investors continued aggressively investing in financial technology (fintech) last year, despite a slowdown in other major markets around the world. Fintech investments in China doubled during the first nine months of 2016 year-on-year, driven by major funding rounds completed by China’s Lufax, Ant Financial and JD Finance. Global fintech investments reached US$18 billion in the first three quarters of 2016, close to the US$19 billion dollars in deals recorded in all of 2015. China accounted for over 50% of …
Ant Financial Services Group, the financial technology affiliate of Alibaba Group Holding Ltd., has agreed to buy Dallas, Texas-based American money transfer company MoneyGram International Inc. for approximately US$880 million to step up its international expansion.
Chinese alternative investment firm CDH Investments, U.S. private equity firm Silver Lake Partners, and Chinese private equity firms Yunfeng Capital and Primavera Capital have led a US$1.1 billion round in Koubei, Alibaba Group Holding’s local on-demand affiliate.
Chinese co-working space start-up UrWork has raised a new round of financing worth RMB400 million (US$58 million) from Tianhong Asset Management Co., Ltd., a fund management firm affiliated with Ant Financial, Chinese property developer Junfa Group and a number of other Chinese companies.