Chinese third-party online payment platform Alipay has reached an acquisition agreemen t with OnCard Payments, a wholly owned subsidiary of Oncard International.
This is the first acquisition case disclosed since the People's Bank of China, China's central bank started to issue licenses of third-party payment business, according to tmcnet.com. As part of the agreement, clients from the Chinese mainland are expecting to pay their airline tickets via Alipay. Market research firm Analysys International predicts that after the second batch of third-party payment licenses is issued, the business area of third-party payment firms will keep expanding.
Alipay, a division of Alibaba Group, currently accounts for 49.56% of the market share with 550 million registered users. Oncard International issues and manages loyalty, reward, and payment programs in the Asia Pacific. It offers private label and co-branded loyalty, reward, or payment solutions, including reward cards, debit cards, gift cards, dining cards, staff cards, credit cards, and phone cards, and insurance services.