Being the first batch of 3rd party online payment solutions to receive a license from China’s Central bank not only assures Alipay’s continual operation, but it also strengthens the company’s market position. Now the online payment affiliate of Alibaba is extending its reach with the acquisition agreement with OnCard payment, a wholly owned subsidiary of Australian Stock Exchange listed Oncard International.
OnCard payment provides online payment service for airlines including Cathay Pacific, DragonAir and Eva Air that lets their passengers to buy tickets online. We can expect that after the acquisition people get to buy airline tickets via Alipay.
According to Jin Xiandong, CFO of Alipay, the acquisition is a close match with the company’s future strategy of development, “By acquiring OnCard, we obtain the seasoned OnCard payment team with the opportunity to serve famous airlines. We will consolidate our services to bring Alipay’s overseas business to the next level. ”
As of now Alipay claims nearly 600 million users in China with a market share of 49.56%.
Neither side gave financial details of the deal.