Alibaba’s fintech affiliate Ant Group has been quietly building a global cross-border payments network by partnering with or investing in third-party e-wallets, banks, remittance services, and other ecosystem players. The latest addition to Ant’s alliance is 2C2P, a Singapore-based company that helps enterprises in Southeast Asia move money across borders.
The Partnership: A Strategic Move for Both Parties
According to an announcement released on Monday, Ant will form a strategic partnership with 2C2P and become its largest shareholder. Although the figure for the acquisition was not disclosed, this deal marks a significant expansion of Ant’s global reach in cross-border payments. With the partnership, the Singaporean firm’s network of merchants will be plugged into Alipay+, Ant’s cross-border payments platform.
Benefits for 2C2P
Aung Kyaw Moe, founder and CEO of 2C2P, stated that this complementary partnership with Ant Group will connect his company to a much larger merchant base. This strategic move positions 2C2P well to advance its international expansion strategy. As part of the agreement, 2C2P’s current 250 payment options will be extended to include more e-wallets and payments methods.
Why Partnership Makes Sense for Ant Group
Rather than building its own country-specific wallet from scratch and acquiring the necessary regulatory permits, Ant has chosen the route of partnership. This approach enables Ant to tap into existing networks and expertise while minimizing costs and regulatory hurdles. Launched in 2020, Alipay+ is a cross-border payments platform that allows users to pay merchants abroad using their local e-wallets.
Alipay+: The Key to Simplifying Cross-Border Payments
When traveling, working, or studying abroad, users often face the hassle of exchanging currency at a bank. Alipay+ solves this problem by allowing users to pay merchants in their home country’s currency. If the retailer supports an e-wallet that works with Alipay+, the user can pay using Alipay+’s partnering wallet for the transaction.
Marketing Tools and a Proven Business Model
Alipay+ comes equipped with a suite of marketing tools that enable merchants to offer deals and discounts for customer engagement. This business model has been proven in China’s mobile-first payments market over the years, where Ant Group has established itself as a dominant player.
Global Goals and Overseas Expansion
As one of the largest fintech companies globally, Ant Group has long had ambitions to expand its reach beyond China. Its sister company, Alipay+, appears to be Ant’s attempt to target users outside China who have similar cross-border payments needs.
Ant’s IPO Plans Shelved: A New Path Forward?
In November 2020, Ant’s plans to pursue an initial public offering were shelved after the Chinese government ordered a regulatory overhaul into its financial practices. This move made some of its China-based businesses less lucrative. As a result, ramping up overseas expansion could be a way for the behemoth to sustain growth.
Alipay+’s Achievements
Ant claims that Alipay+ has served more than 1 billion users in Asia and 1 million offline merchants across Europe and Asia. Online, it has connected payments providers to customers on platforms like Apple, Foodpanda, Google, and Facebook.
Conclusion: A Strategic Move for Ant Group
The partnership between Ant Group and 2C2P is a strategic move that expands Ant’s global reach in cross-border payments. By leveraging existing networks and expertise, Ant minimizes costs and regulatory hurdles while positioning itself as a dominant player in the fintech industry. This deal marks an important milestone for both parties, with significant implications for the future of cross-border payments.
