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ALIBABA & EBAY

THE IMPLEMENTATION OF THE


ONLINE PAYMENT METHODS OF
ALIPAY AND PAYPAL
Introduction to EBusiness
Final Project
Fall 2016

Giulianna Soriano
Moises Hernandez
Mara del Mar Vsquez

INTRODUCTION
In this project were going to analyze the difference between the
payment technologies implemented by two of the leading E-Commerce
marketplace platforms in the world, Alibaba and eBay.

ALIBABA
Founded by one of the most
successful
and
influential
entrepreneurs of this time, Jack Ma.
Jack Mas goal was of facilitating
international trade for small and
medium ventures based in China
(Jalloh, s.f.) ending in the foundation
of Alibaba in 1999.

eBay
Pierre
AuctionWeb

Omidyar

founded

on

C2C

growth

and

1995,

business site.
The

companys

revenue

started

to

grow

exponentially, it became eBay and


solved

its

acquiring

biggest
the

problem

online

by

payment

WHEN EBAY ENTERED CHINA

Alibaba saw it as a threat to their market and launched


Taobao.
Taobao started to gain Chinas market, so eBay tried to
compete buying part of EachNet and investing more money into
eBay China.
Alibaba created its own online payment platform in 2004,
Alipay. Thanks to it, exploited the chinese market.

DESCRIPTION IF THE ONLINE PAYMENT


PLATFORMS IMPLEMENTED BY THE BUSINESSES
ALIPAY:
It was launched in China on 2004 by
Alibaba Group.
It is the most used online payment
service provider in China.
Alibaba was worth around $70 billion.
Alipay operates with more than 65
financial institutions including Visa

PAYPAL
It is one of the world's largest Internet
payment companies which was founded
by Peter Thiel and Max Levchin in 1998
It became owned by eBay in 2002 paying
$1.5 million for PayPal.
PayPal is operating in an increasingly
competitive marketplace, going head to
head with such corporate giants as
Google, Amazon and Apple.

FINANCIAL, TECHNICAL AND CULTURAL CHALLENGES


INVOLVING THE IMPLEMENTATION OF THE TECHNOLOGIES
Implementation of Alipay
Making chinese people
secure of using online
payment platform

Implementation of PayPal

eBay risk
Visa and Mastercard risk

Elimination of transaction
fees
Problems of privacy of

legal risk
psychological factors

WHAT HAPPENED AFTER THE IMPLEMENTATION


OF THE TECHNOLOGIES?
BEFORE AND AFTER PAYPAL
PayPal, made buying and selling on
eBay at least 10 times better. Instead
of mailing a check that would take 7
to 10 days to arrive, PayPal let buyers
pay as soon as an auction ended.
(Thiel, 2014)

Buying PayPal, was the perfect and


more strategic solution for a
problem that was slowing the
growth of eBay. It made sales
skyrocket and was a key point
for the actual international size
and power that the company has
today.

BEFORE AND AFTER ALIPAY


Alipay was the solution for what people
needed the most in China, giving
people the security to do any money
movements, purchases and payments
online.
It became the most used way of buying
things from online shops like Taobao,
movies or plane tickets, pay in a store,
a restaurant or even merchants on the

CONCLUSIONS
From this project we can conclude that the implementation of the technologies
changed E-Commerce. The technologies implemented where on the field of online
payment platforms. This platforms were created in order to give value to the
customers. They create payment security, facilitate payments, sells and transactions.
The implementation of the online payment platforms in both companies, Alibaba and
eBay, increased sales and customers exponentially. These technologies were crucial
points for the growth and development of the companies and become two of the
multinational leading E-Commerce platforms.

BIBLIOGRAPHY

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