Alibaba Payment Service Offers Cloud Service Based On Blockchain Technology

Alibaba's Alipay might provide a cloud service based on the blockchain technology to its users in the market.

During the YunQi Computing Conference recently held in Shanghai, Alibaba’s online payment service provider ‘Alipay’ announced it might offer a blockchain technology based cloud service platform. The online retailer is deeply taking interest in blockchain technology after viewing the measures taken by leading financial institutions and organizations like NASDAQ, which succeeded in integrating blockchain apps into the traditional financial industry.

The transparent and decentralized Bitcoin block technology enables everyone using the network to conduct a peer-to-peer transaction, without involving any third party app. The network’s independence from the traditional financial service providers and intermediaries significantly cuts down the costs involved to settle payments and transactions, such as Alipay.

President of Research Institute Gao Hongbing and Alibaba’s Vice President has laid emphasis on importance of big data's importance and blockchain technology's application in the sector. Today, Alipay is settling over 80 million transactions daily and serving over 350 million registered users. The leading payment network of China is controlling almost 80% of the entire Chinese mobile payment service market and providing support to 109 million active people on its wallet platform Alipay.

The expansion of financial platforms, such as Alipay, cloud computation and internet infrastructure recorded an increase in the revenue by 128% on a yearly basis during the third quarter last year.

Alipay has responded to the increasing demand for simple yet strong financial platforms for processing and settling payments by planning to launch the cloud payment platform based on Bitcoin blockchain technology for its existing users.

In 2015, a rising number of conglomerates and global corporations have started to provide Alipay to consumers as a main payment option. The airline, which has reached the most destinations, United Airlines, for instance announced it has formally integrated Alipay into its system because of the rising demands from the citizens of China, who contributes to almost 3% of foreign travellers to the U.S.

Though Alipay is not sure whether it will gear to integrate Bitcoin network or develop its independent blockchain network, its official participating in YunQi conference clearly said Alipay would most probably launch a cloud payment facility supported by blockchain in this year.

If the team managing Alibaba’s payment platform succeeds in integrating Bitcoin into the current platform, 400 million users would be immediately allowed to use Bitcoin in making transactions and international payments. Arguably, this could prove to be the biggest Bitcoin integration in terms of volume up till now.

In other news, Wall Street Journal reported that Uber has decided to allow its riders outside China to make payments of fares through Alibaba’s payment service. Uber users were initially be able to do so in Taiwan, Hong Kong and Macau. This is preferred by passengers now due to convenience.