Alibaba confirmed the rumor that it would roll out online shopping credit service, called “Credit Payment”, to users on Taobao and Tmall as soon as in the upcoming April. The service will be provided by Alipay, the payments service under Alibaba Group.

Credit limit, up to 5,000 yuan ($ 800), will be decided with algorithms based on user data, such as ratings given by sellers and purchase history. Interest free periods are up to 38 days. It is reported that 80 million Alipay users are qualified to apply for it.

The service will charge Taobao or Tmall merchants who join in the program 1% of payments (currently 0.8% as a discount), similar to the level with credit cards. Over 1.3 million merchants have already been qualified and can get on board whenever they’d like to. A logo signaling it will be shown on the webpages of merchants’ stores then.

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Tracey Xiang

Tracey Xiang is Beijing, China-based tech writer. Reach her at traceyxiang@gmail.com