Paytm Plans to Expand its Payment Business to the Global Platform with Alibaba

By siliconindia | Wednesday, 04 May 2016, 04:42 Hrs

BENGALURU: Paytm entered into an official agreement with Alibaba in January, aiming to elevate its business to global markets such as the UK, Japan, China and the US. The agreement also allows Alibaba's Alipay to have access to Paytm's payments services platform. Additionally, collaborating with Wipro and leveraging its support, the company’s dream to build its upcoming payment business will soon transform into reality.

According to the agreement, payment platforms of the two companies will integrate, effectively allowing the Chinese consumers to shop on Paytm and pay via Alipay. Indian customers will also have access to Alipay's existing merchant base which is deployed across several developed markets. Apart from the current slow moving pace of India's online retail space, e-commerce giants such as Flipkart and Snapdeal are launching their own wallet services to make a mark on the payments market. However, only Paytm's founder-CEO got the payments bank license issued in August this year.

The Mint earlier reported that One97 Communications, Paytm's parent firm joined hands with Alibaba's cloud computing section, the AliCloud. Motive of the alliance was to install Alipay's tech base known as Aliyun, via AliCloud. This had costed the Indian e-commerce company around 120 Crores.

Data centers for Paytm’s upcoming technology solutions will be in India. Wipro is in charge of the data centers for Payment Bank in order to ensure efficient management and smooth functioning of the new section. Currently, Paytm owns two data centers in Mumbai and one in Delhi. Indians can use the seamless services of Paytm for purchases from overseas vendors once the company's own payments bank is set up and progresses by second quarter.