Foreign media: How many Americans have heard? And ant gold clothes will be everywhere

[Global Technology Report] March 13 news, according to foreign media reports, although for Americans, most people have not heard of the company Ant Financial, but in fact, Ant Financial is constantly expanding its business , and is causing people's attention. Chris Skinner, a blogger and columnist in technology finance, has been paying attention to this for a long time.

“Fintech is just a company that helps the existing financial system to improve technology, and TechFin is using technology to restructure the financial system. Our goal is to promote inclusive finance and make financial services more People,” said Alibaba founder Ma Yun at the China Forum held in the South China Morning Post last December. Therefore, there was a report on the keynote speech of Ma Nan by the South China Morning Post on December 5, titled "Technology Finance: Ma Yun Made a New Word to Describe His Target for Alipay - To Provide to Emerging Markets Pratt & Whitney Financial Services.

On February 5th, 2016, Chris Skinner published a blog post comparing "Technology Finance" and "FinTech". The former is to improve existing banking financial services through technology, and the latter is to change the financial system. The two are completely different. This new word created by Ma Yun has become the main source of traffic for his blog.

Chris Skinner is not interested in arguments like vocabulary and terminology. But what I want to emphasize is that Ant Financial (formerly Alipay) is constantly expanding its business and is attracting attention. They first invested in products and services similar to their business in markets with similar conditions in China, such as India and Thailand. This is exactly the reason why Ma Yun put forward "Preferential Benefits." For mobile wallets, using mobile internet to achieve universal inclusion is a fairly correct development strategy.

In 2015, Ant Financial made two rounds of investment in India's Paytm. Shortly thereafter, India abolished the large amount of money and directly pushed the number of Paytm wallet users to 200 million. In November 2016, Ant Financial entered into a partnership with Ascend Money, a digital wallet operator in Thailand. According to the agreement between the parties, Ant Financial will assist Ascend Money in improving its online and offline payment service and financial services ecosystem. It is worth mentioning that Ascend Money, headquartered in Thailand, also operates in Indonesia, the Philippines, Vietnam, Myanmar and Cambodia.

Last month, Ant Financial Corps launched $3 billion in loan financing to expand its investment portfolio. Ant also announced that it will purchase MoneyGram for $880 million. Afterwards, Ant Financial made a strategic investment in Kakao Pay, a Korean online chat software Kakao.

In addition to promoting inclusive finance in emerging markets, Ant Financial is also expanding into the United States and Europe. The expansion approach is not just the purchase of MoneyGram. At the end of 2015, Ant Financial signed a contract with Wirecard and plans to use the latter's wallet to provide payment services for Chinese tourists in Europe. Subsequently, Ant Financial respectively announced cooperation with Ingenico and First Data to strengthen its business coverage in Europe and North America.

Ant Mongbo CEO Jing Xiandong clearly stated his development goals at the Davos Forum in January. "We plan to become a global company," Jingxian told CNBC at the World Economic Forum in Davos. “Our goal is to provide services for 2 billion people through technology and cooperation with other partners in the next 10 years and to serve those who do not enjoy inclusive financial services.”

2025! 2 billion people! This is an amazing number.

How will they achieve this goal? The answer is to use all the latest key technologies including cloud technology, data analysis technology and distributed ledger technology. "We will use all technologies ... to build a higher level of security," Jing Xiandong said, artificial intelligence and blockchain will be "deeply integrated" into the operation of Ant Financial.

To conclude, Chris' blog post has been paying attention to Alipay for some time. They have innovated a new market. This is quite different from the American and European financial technology companies. Their way of thinking left a deep impression on me. When Alipay started, China’s e-commerce was almost zero. It is Alibaba and Alipay that have created China’s e-commerce.

This is totally different from the development history of American e-commerce giants such as Amazon and eBay. The latter two have faced the challenges posed by the traditional industry competitors in the field of e-commerce in the early stages of development, and they did not integrate payment services with the business at the start. At the same time, U.S. giants are serving a mature market where consumers have complex online requirements. The Alibaba and Alipay services are a fiercely changing market: large numbers of people are pouring from the countryside into rapidly expanding cities, and are driven by the manufacturing industry to get richer from the poor.

In the process of China's commercial innovation that encompasses manufacturing and e-commerce, Ant Financial has gradually grown into a leading company. At recent industry conferences, Chris listened to a speech made by Liu Yu, the European head of Ant Financial Services.

The first line of her first slide was: Ant Financial - empowering digital financial life globally.

This slogan shows that Ant Financial is more than just a payment app or mobile wallet, but social, commercial and financial. Imagine integrating Facebook, Amazon, and PayPal. This is what Ant Financial has built.

The content of another slide also shows that they have to do more than just pay, but to cover all the financial products we need.

Chris likes the following sentence in the slide: everything is to deepen the understanding of the user, rather than deliberately cross-selling. Obviously, they are familiar with the operating model of Western banks. Liu Yu said on the slide that most of the Chinese customers who bought their wealth management products were under the age of 35, from areas that lacked banking services, such as rural areas.

They also have a huge scale. For example, during the Singles Festival last year, Alipay recorded a peak transaction volume of 120,000 transactions per second. In 24 hours, the total transaction amounted to 17.7 billion U.S. dollars.

In contrast, Visa's average volume of transactions per second is 1,750, with a peak rate of 24,000 per second, which is far less than Alipay. Although most Americans haven’t heard of the company Ant Financial, please note that in less than a few years, it will be everywhere.

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