- Alipay's mobile app (Alipay Wallet) is being updated to support a car rental service that will allow users with good credit (as determined by Alipay's transaction data) to rent cars without a down payment.
- The service will initially launch in Alibaba's (NYSE:BABA) hometown of Hangzhou - EV maker Kandi (NASDAQ:KNDI) supports a local car-sharing program - but will later expand to Shanghai and Beijing.
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Going forward, the Chinese online payments giant sees itself handling many other types of local services payments, including hotel bookings, apartment rentals, and hospital fees. "This car rental service is like a pilot project," says a product manager.
- Separately, Alipay has launched ePass, a service that handles payments for Western merchants looking to sell to Chinese consumers. Fashion retailer Gilt Groupe is among the initial supporters.
- Alipay argues ePass can handle thorny currency, customs, and logistics issues that can prevent Western merchants from selling into China. U.S. chief Jingming Li: "We’ve been there for 14 years: we know the customers, know their marketing channels."
- Ahead of its IPO, Alibaba restructured its deal with Alipay parent Small & Micro to give it a 37.5% stake in the event of an IPO involving a $25B+ valuation, and to obtain 37.5% of Small & Micro's pre-tax income until them. Alipay had 800M+ registered users as of June 2013.
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Update: Kandi says its management recently met with Alipay's parent company to "discuss opportunities for cooperation," while adding there's nothing to announce yet.