Chinese online retail giant Alibaba is currently in talks with ChinaPay for the latter to serve as a payment option for the former's Taobao online store. (Photo : Twitter)
After being hit by new regulations for online payments, Chinese online retail giant Alibaba is reportedly seeking to add ChinaPay as one of the payment methods for its Taobao Web store.
The two companies are currently in talks for a potential deal, the Global Times reported. However, no immediate details were given about the possible nature of the agreement. Alibaba also refused to comment when asked about the negotiations.
Alibaba's decision to cut a deal with ChinaPay comes on the heels of the new set of regulations promulgated by the People's Bank of China (PBOC). Under the rules announced in December, people using online payment methods for their transactions are required to link their accounts to bank accounts within China. They are also required to register using their real names.
Experts said that the new regulations are likely to hit Taobao's foreign customers significantly, as they would have no means of paying for their purchases from the store. As a response, Alibaba announced that it would be offering alternative methods
However, analysts said that ChinaPay's potential role as a payment option for Taobao is likely going to be small, as a lot of the store's customers are already using Alipay, Alibaba's own online payment service, ECNS reported.
According to industry analyst Li Chao of the marketing consultancy firm iResearch, Taobao customers are not likely to switch from Alipay to ChinaPay anytime soon, as the former is already part of the store for several years now.
Aside from using ChinaPay, Alibaba has already allowed Taobao's customers to use other payment options like credit cards, Jetco, Octopus Cards and PPS.
