Ripple CEO Brad Garlinghouse has confirmed talks with Alipay. Alipay is a subsidiary of the Alibaba group funded by Jack Ma, and happens to be a third party mobile and online payment platform established in Hangzhou China in the year 2004 and headquartered in Shanghai.
Ripple CEO Brad Garlinghouse revealed this while sharing a stage with Paypal president Daniel Schulman at the Fintech ideas festival, where they discussed the future of payments. Alipay came up in the conversation after the panel host fronted a question to Paypal’s CEO Dan Schulman on whether he had any regrets over not going with the Alipay payments model instead of partnering with Banks, Visa and MasterCard like they did back in 2016.
Mr Schulman maintained that he had no regrets over the decisions made in 2016 and went ahead to say;
“I think a lot of people want to extrapolate the Chinese experience to other markets, but you have to remember they came from a completely different place. First of all they did not have an embedded point of sale system in place, so very few of the merchants accepted credit cards, they didn’t have a large credit system in place so QR codes came naturally”
He went on to add that the payments space was quite fascinating because every country is different.
“Every country is different, Germany, Japan, have very different thoughts about credit than we have here in the US. China, you look at Africa and its a little like telephony; you know they didn’t go from no phones, to wire phones to wire lines, to wireless, they just leapt right to wireless. Same thing is happening in digital payments, you look at Kenya and others where 40 percent of the GDP is moved through Mpesa. So every country is different and when we look at the world, we don’t look at a key cutter approach at all, we look at country by country, so you know what is the right proposition to put out onto that marketplace”
Garlinghouse chimed in by revealing that he had discussions with Alipay he said;
“Alipay has grand ambitions in the United states”
The interviewer pressed on whether Alipay had admitted that they had ambitions of being big payers in the US, to which Garlinghouse responded;
“I think there’s no doubt about that”
He went on to say;
“Dan and I have had conversations with people in those companies and this is a large economy, they want growth”
If a deal were to materialize between Alipay and Ripple, it would definitely be huge for the crypto-currency. If eToro senior analyst Mati Greenspan assertions are anything to go by-that the current crypto surge started in Asia- then think of the effect a deal with Alipay would have on the price of XRP.
Image courtesy of Medium