China-based Alipay falling short of expectations in Taiwan

   Date:2008/01/04     Source:

Alipay, the largest platform to provide third-party electronic payment service in China, began its operation in the Taiwan market around the end of November 2007 with a goal of attracting 100 online store operators to use its service by the end of 2007, but the number of users was quite far below the target as of the end of 2007, according to eDynamics vice president Candice Liu.

eDynamics, a provider of e-commerce and online marketing services specifically for small enterprises and individuals in Taiwan, introduced Alipay to the Taiwan market.

Alipay's less than expected attractiveness to operators of online stores in Taiwan is because potential customers in China are generally not aware of merchandise available for online sale in Taiwan and therefore their willingness to buy is low, Liu explained. The Chinese government has not yet allowed Chinese tourists to directly visit Taiwan and some websites in Taiwan are blocked from access in China, mainly accounting for the unawareness, Liu pointed out.

Despite the unsatisfactory performance of Alipay, the platform serves to test consumers' demand in the China market for Taiwanese online store operators who are interested in tapping the market, Liu indicated.

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