[fm]: Uber’s China Customers can Now Pay for International Rides Using Alibaba’s Alipay

Uber’s Chinese customers can now pay for rides outside mainland China using Alibaba Group Holding Ltd’s (NYSE:BABA) online payments service, Alipay. This is because Uber has expanded its partnership with Alipay to include overseas rides.

Uber first partnered with Alipay to cover rides in China in 2014. This is why Uber’s Chinese customers already use Alipay to pay for domestic rides. The new partnership will first cover international rides in Hong Kong, Macau and Taiwan this month and “will be extended to more regions around the world during the year”.

Uber’s latest initiative helps it to compete more effectively with fellow taxi-hailing firm, Didi Kuaidi. Didi Kuaidi has inked partnerships with Lyft in US, Ola in India and GrabTaxi in Southeast Asia, in a strategy that will let it cover international markets.

Prior to the new agreement, Uber China required customers to use dual-currency credit cards for rides across the border. Since dual-currency credit cards are not that common, a limited number of users used the service. Alipay’s massive presence with more than 400 million users helps Uber solve the problem of tapping overseas rides. Within China, Uber accepts various payment options including Alipay.

Aside from its strong Chinese presence, the extension of the partnership will allow Alipay to further its cross border presence. It will also help it stay one step ahead of rival WeChat, which is backed by Alibaba’s competitor, Tencent.

By:  Usman Farooq. 
Editing: Shuaib Ahmed. 

Review: Emerging Market Formulations & Research Unit, Flagship Records.

For The #FacebookTeam