It hopes to gain significant traction through this partnership in the world’s biggest smartphone market – China.
In a strategic move designed to boost its sales in China, the world’s biggest market for smartphones, Samsung Electronics, has struck a deal with Alibaba Group Holding so as to allow its customers to make payments through Alipay.
Existing Samsung Pay users will additionally have an option to use Alipay within the Samsung Pay app, i.e. they will not have to separately open Alipay.
Alipay is operated by Alibaba affiliate Ant Financial Services Group and has 450 million active registered users.
Samsung launched its mobile payment services named Samsung Pay in China in March following Apple’s launch of Apple Pay.
In order to gain traction in the Chinese market, and given Alipay’s dominant position, Samsung, a late comer in the mobile payment services, is trying to leverage Alipay’s standing to get some significant grounds of its own.
According to Strategy Analytics, a market research company, of late Samsung has been steadily losing ground to Chinese rivals such as Apple, Xiaomi and Huawei Technologies Co. It is no longer in the top 5 smartphone brands in China.
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