The news: JPMorgan will process US credit card payments for Alibaba.com, Alibaba’s B2B sales unit based in China. The bank will work with Alipay—the payments business operated by Alibaba’s affiliate firm Ant Group—to facilitate the transactions, per a press release.
Why it’s worth watching: Alibaba is one of the largest ecommerce platforms in the world and specializes in B2B ecommerce sales. Despite facing regulatory challenges, the company still managed to pull in $31.865 billion in revenues in Q2, up 34% compared with the same period last year.
Even though the majority of its business comes from China, the US makes up a sizable chunk of its volume—approximately 30% of all Alibaba.com transactions come from the US, per PYMNTS. And transactions involving US businesses grew 150% year over year (YoY) from 2020 to 2021.
JPMorgan’s opportunity: Bringing Alibaba.com into its business ecosystem helps open the door to higher revenues.
Alibaba’s gain: Bringing in JPMorgan’s solutions can help enhance the payment process and overall customer experience in the fast-growing US market. And as Alibaba faces mounting regulatory pressure in China, it’ll be increasingly important to sustain growth in global markets.
Related content: Check out this article for a closer look at Alibaba’s recent growth, opportunities, and challenges ahead.