Alibaba which is the biggest tech business in China, has announced that Taobao and Tmall which are the two of the company’s most recognized e-commerce platforms, would now allow transactions made with WeChat Pay. Alibaba has changed to a more collaborative strategy by granting WeChat Pay access for the first time with this move.
Removing the Barriers
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Alibaba made this strategic step because the firm wanted to spur development in the E-commerce sector of China. Alibaba is searching for innovative ways so that they can increase their engagement with customers along with the market share, and, they are specifically doing it in countries that are developing. This crucial step was taken because the rival companies were becoming obstacles and they were facing declining customer demand.
Increasing Growth Despite Competition
The Chief Executive Officer of Alibaba, Eddie Wu has declared his intention to restart Taobao as well as Tmall’s development by the second half of the company’s 2025 financial year. It is assumed that The Payment service WeChat Pay, which has more than 1.3 billion users around the world might help Alibaba increase its share of the market. Most of the WeChat Pay users are from China so it would benefit Alibaba. This will be especially beneficial in areas where WeChat Pay is extensively utilized.
WeChat Pay has long been available on other platforms such as JD.com, thus Alibaba’s action helps them stay competitive in a market that is changing quickly.
Cooperation and Regulatory Pressure
The regulatory pressure coming from the Chinese authorities, who have pushed internet corporations to dismantle their “walled gardens,” is also relevant to this development. In the past, these gardens kept rivals from using each other’s platforms’ functions. In reaction to these laws, two of China’s biggest tech companies, Tencent and Alibaba, have begun to relax these limits during the past couple of years.
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