Alibaba And Apple "Marriage" Or Facing Obstacles

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Xiaobian of the network to introduce the Alibaba and apple "marriage" or facing obstacles.

The plan of cooperation between Alibaba and Apple Corp in the field of payment has aroused widespread concern recently.

However, many people have questioned this "marriage" plan.

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Alibaba Group Holding Ltd. (Alibaba) and Apple Corp (Apple Inc.) may cooperate in electronic payment, which may open up new paths for the two companies in the world's largest electricity supplier market in China.

But analysts and payment experts say that this marriage must first overcome a series of technical difficulties and regulatory obstacles that may be faced.

The marriage was mentioned by Ma Yun, executive director of Alibaba group, in an interview at the WSJD Live global technology conference held in California on Monday night in Jack Ma.

Ma Yun said Alibaba is interested in collaborating with iPhone maker apple in the field of payment.

Alibaba recently launched the world's largest initial public offering (IPO) in the US, raising $25 billion.

Apple chief executive Cook (Tim Cook) said at the same conference that he would meet with Ma Yun to discuss potential cooperation, but he did not specify what kind of cooperation it was.

In China, any such cooperation can form an extremely powerful force.

Alibaba controls about 80% of China's online shopping market. Figures from the Chinese government show that the size of China's Internet retail market last year was about $302 billion.

Alipay (Alipay), a Alibaba affiliated company, is handling most of the online shopping pactions, but is still actively moving towards the entity payment field such as shopping malls, restaurants, taxi companies and cinemas.

Analysts said that if Apple alliance is allowed to allow iPhone users to pay through Alibaba accounts, Alipay can help achieve progress.

For apple, which has just launched its own payment system Apple Pay, if you cooperate with Alipay in China, you will find a shortcut to Alipay's strong trading system.

At present, hundreds of millions of consumers and businesses are using Alipay.

Apple will also take advantage of the existing agreements reached between Alipay and more than 200 Chinese financial institutions.

Under these agreements, customers can pfer money from bank accounts to Alipay.

IPhone 6 and iPhone 6 Plus loaded Apple Pay use a smart chip technology, users only need to put the phone near the card reader to complete the payment.

But the service has not yet landed in China.

Analysts say, and

If we join hands, Alibaba will be able to contact the entities' information through Apple Pay.

Forrester Research analyst Bryan Wang said that if Alipay wants to collect more high-end customers' offline payment data, it will be wise to ally with apple.

He said China's iPhone users are richer.

As for the payment of physical shops, Alipay is currently using the two-dimensional code that can be scanned by a smart phone camera and a technology for pmitting payment information through sound waves.

But in China's large retail stores, machines that support two-dimensional code and sound wave technology are not very common.

However, Apple's marriage with Alibaba will face challenges, and it is not clear about China.

How will regulators react?

Alipay's payment to the offline expansion and other financial products such as money market funds have prompted traditional Chinese state-owned banks to call for stronger regulation of Alipay.

In addition to Alipay, apple can also choose other payment partners in China.

One of them may be an alliance with the China Unionpay Co., China UnionPay (Chellona UnionPay Co).

The state-owned credit card and debit card agency has a nationwide card reader compatible with the payment chip of Apple's new iPhone.

Chris Harvey, global head of financial services at Deloitte Touche Tohmatsu, said that in the short term, Apple's alliance with DDT UnionPay is beneficial, but in the long run, joint efforts with Alipay are more conducive to future development.