The much anticipated initial public offering of Ant Financial (Alibaba’s finance arm) has been moved to the end of 2018. Ant Financials need to complete regulatory approvals and must concentrate on business building for the moment.
Ant Financial is the Most Awaited IPO
Its affiliate company, Alibaba, holds the largest IPO ever. Now, Ant Financial is an emergent top-pre IPO technology company. Its business value has been estimated to be $75 billion. Last 2016, it has overtaken leading financial technology innovators worldwide as it ranked as the highest in the list.
The Early Beginnings of Ant Financial
Back in 2004, Alibaba Group established Alipay (a third-party online payment platform). It provides an escrow service where consumers are given the opportunity to express their sentiments regarding the goods they bought before the company releases the money to the seller on Alibaba’s marketplace.
This has been offered since there are news back then in China that the country has weak consumer protection laws which led to a diminished consumer confidence and quality control. As of December 2016, there are 450 million users using Alipay and has been expanding both in and out China.
A research done by iResearch reveals that by total payment volume, Alipay is the leading third-party online payment service provider in the country and has an existing collaboration with more than 200 financial institutions worldwide, 460,000 Chinese businesses, and over 300 global merchants use such to sell their products. Right now, it can authenticate transactions in 18 major currencies.
Growing Online Transactions in China
Sometime in 2008, online transactions in China were minor, but a research done in 2012 revealed that online transactions totaled to around RMB 4 trillion (US$660 billion). In 2014, it garnered the title as the world’s largest mobile payments platform. Back in 2013, the company obtained a total of $150 billion in mobile transactions, which had been greater than PayPal and Square collectively. The company had overtaken PayPal in terms of mobile users during the second quarter of that year.
Since December 2016, Alipay has sponsored 70 countries and regions.
2010 Transfer of Alipay
Last 2010, the transfer in ownership of Alipay was a hot topic. The media criticized greatly Jack Ma and it harmed Chinese investments back then, decreasing foreign trust. The ownership wrangle was settled by Alibaba Group in July 2011. In 2015, Alipay was restructured and renamed as Ant Financial Services Group.
Alipay Overseas Alliances
The first ever American company that will implement Alipay is First Data Corporation. The partnership was made last year. Across California and New York, Alipay mobile payment solutions are being accepted.
It closed another tie-up with Verifone, too, giving it access to 29 million payment devices and terminals internationally. It also aims to acquire MoneyGram, which, during 2016 its global remittances totaled to $575 billion consistent with the data from the World Bank.
Ant Financial is progressively headed to becoming a global company. Although there are no further details yet on the plans of Ant Financial, it seems that the company would be a hot stock and is something to watch out for.
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