Samsung Electronics Co Ltd. plans to partner with Alibaba Group Holding Ltd’s (NYSE:BABA) financial affiliate on mobile payments to expand in Chinese market, which is the world's biggest smartphone market.
Samsung launched its mobile payment system Samsung Pay in China last month. However, Samsung has lost its position in the top five smartphone brands in China, and failed to its Chinese rivals Huawei and Xiaomi, as well as Apple, who just lunched Apple Pay on February in China.
After the deal, Samsung Pay users can pay for purchases using the barcode scanners and QR codes of Alipay, which belongs to Alibaba affiliate Ant Financial Services Group. Alipay now has 450 million registered users in China, and has dominated mainland mobile payment market along with Tencent’s Tenpay. The cooperation will help Samsung boost sales in Chinese market.
Samsung launched Samsung Pay in US market after launching in its home South Korea, making US market the second launch market, and there are more than five million users in both US and South Korea. After launching in China on March, Samsung is going to launch in Australia, Brazil, Singapore, Spain and the UK later in the year.
The cooperation also benefits Alibaba in expanding overseas market, which is a priority for the corporation. Alipay made an agreement with Uber earlier this year to make it possible for Chinese Alipay users to pay for the rides using Alipay when they are traveling overseas. Alipay was also launched in Europe on March.