SHANGHAI Aug 28 Alipay, a unit of Chinese
e-commerce giant Alibaba Group, will stop its offline
point of sales (POS) service for small companies, the official
Shanghai Daily reported on Wednesday.
The company, China's biggest third-party payment service
provider, said it had halted the service for "obvious reasons",
without providing further details, but added that it will
proceed with pay services in the future, the newspaper said.
Alipay is the primary electronic payment system used for
transactions on the massive Taobao online shopping platform -
commonly referred to as the Chinese version of eBay - which is
also owned by the Alibaba Group.
The report cited market rumours that state-owned China
UnionPay had put pressure on Alipay to route its POS service
through UnionPay's system so it could increase its commission
earnings on transactions.
UnionPay declined to comment.
In 2012, the World Trade Organization ruled that China had
unfairly discriminated on behalf of UnionPay at the expense of
foreign competitors, in particular MasterCard Inc and
Visa Inc, and it has attracted domestic accusations of
Alipay said in an unrelated notice that third-party payment
companies that link directly to commercial banks could
unintentionally facilitate online fraud and money laundering.
The company has intensified efforts to make third-party services
more standardised in order to control risks, according to the
In 2012, Alipay, Tenpay (operated by Internet portal Tencent
Holdings Ltd ) and UnionPay dominated the third-party
payment market, with market shares of 46.6 percent, 20.9 percent
and 11.9 percent respectively, according to data from Analysys