Alipay: Mechanism, Differences, and Benefits

This document provides an overview of Alipay, focusing on its mechanism, differences and similarities with other online payment systems, and the benefits it offers. It also discusses the importance of cybersecurity in the online payment system and explores the relationship between cybersecurity, compliance, and the business community. The document highlights the need for innovative laws and trust-building measures in cybersecurity.

RUNNING HEAD: Management 0
Alipay
IT Infrastructure Management

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Contents
Task A...................................................................................................................................................0
The mechanism used by Alipay.........................................................................................................0
Difference and similarities between Alipay and other online payment systems................................0
Benefits offered.................................................................................................................................1
Identified problems............................................................................................................................1
Task B...................................................................................................................................................2
Introduction.......................................................................................................................................2
Cybersecurity, compliance and business community.........................................................................2
Conclusion.........................................................................................................................................4
References.............................................................................................................................................0
References.............................................................................................................................................2

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Task A
The mechanism used by Alipay
Alipay handles online payments and beliefs buyer protection. The buyer selects a product and
makes payment via Alipay. The company retains the money as escrow and informs the seller
that the buyer has made the payment. It does not transfer the money to the vendor’s Alipay
account. Alipay is the most popular digital wallet in China. The shopping malls in China
accept Alipay at the checkout counters. The mission of the company is to do business
anywhere. It goals to form an online platform which can be used by the merchants or
businesses to reach users (Choi & Sun, 2016). The company aims to provide a safe network
between producers and businesses.
Difference and similarities between Alipay and other online payment systems
Wechat is the recognized payment gateway based on the chat app. The debit cards can be
linked to the Wechat payment in order to complete a transaction. The payment methods used
in the Wechat are Quick Pay, QR Code Payment, In-App web-based payment and In-App
payment. On the other side, AliPay surpassed PayPal as the globe’s largest mobile payment
system. The main difference between both is the difference in marketing strategies. Wechat
mainly follows the social nature of Wechat and emphasis on the social aspect of e-commerce.
Wechat charges. 1% for the withdrawals over $153 and Alipay charges 0.1% for withdrawals
over $2,897. Add on, Alipay supports to all the desktops and smartphones whereas Wechat
only assists smartphones. Alipay focuses on business nature like payment for retail, e-
commerce, and wholesale while Wechat follows the social aspect of e-commerce (Xu, Ghose
& Xiao, 2018).

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Both Alipay and Wechat provide online payment services. Both the companies provide
digital wallet service and are China’s largest company. The services offered by both the
companies can be used to pay bills, buy goods, order tickets and more. The organizations are
continued to expand their services to several financial products from investment funds to the
insurance.
Benefits offered
Alipay is not just app but it is called ‘No cash society’. The company covers almost every
aspect of life from buying cinema tickets to paying hospital bills. Alipay offers credit to the
customers based on their behavior in the Alibaba group. Alipay also offers insurance in
almost every single aspects of life. The company also offers extra benefits and benefits for
every offline payment. It is an effective way to increase the engagement of the users
(Knowles, et al. 2015). It has constructed an effective credit system. The users having good
creditworthiness can enjoy deposit free rental services like a power bank or bike sharing.
Identified problems
Alipay faced problems over the breach of the user’s privacy. The company faced problem in
handling user’s data which grown the concern over privacy. The customers in China faced a
lack of privacy. The internet users responded with some strange outrage to learn that Alipay.
It is used by the millions of the customers on a daily basis. Enough information was out, in
such a scenario everyone thought that there is no way to safeguard personal information. The
company found the need to protect private information by using cybersecurity. The
cybersecurity protects the sensitive information of an organization. It aims at increasing

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security measures. It has multiple layers of protection spread across the computer, network,
and data (Abomhara, 2015).

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Task B
Introduction
The cyber security is all about the practice
of protecting systems; networks and
programs from the digital attacks. The
cyber attack aims at accessing and
destroying sensitive information, wringing
money from the users, and interrupting
normal business process. Alipay is a
mobile and online payment platform. It
was founded in 2004 by the Alibaba group
in China. The company is having it's
headquartered in Shanghai. The company
overtook Paypal in 2013 which is the
largest payment platform. The rapid
development of computer and network
technology has made e-commerce as a part
of daily life. The online payments systems
have made a significant role in e-
commerce as used for the e-transactions.
Alipay is identified as having a top online
payment system. The technical aspects and
cybersecurity are the main aspects of the
online payment system. It is important to
have a reliable and trustworthy payment
system (Ben-Asher & Gonzalez, 2015).
Cybersecurity is an important aspect of the
online payment system. This system has
revolutionized business processing by
reducing paperwork and transaction costs.
The online payment systems have been
developed in some last years and ensuring
a high level of privacy, security,
confidentiality and efficiency
characteristics (Carr, 2016). The report
aims to introduce cybersecurity,
compliance and business community.
Cybersecurity, compliance and business
community
Overview
Alipay is the top online payment systems.
Online payment systems become popular
nowadays. It is a type of electronic
payment which is offered by 3rdparty

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payment edge between banks for the real-
time payment. When it is compared to the
outmoded payment, online payment
systems are regarded as fast, economical
and convenient. The users can make use of
the computer or online payment systems to
accomplish the payment process in the
least possible time. The debit card and net
bank are the most popular online payment
systems (Buczak & Guven, 2016). The
convenience and velocity to the
transactions are the factors contribute to
the choice of the online payment system.
The cybersecurity detects the technical
problems along with the vulnerability to
the crime. It identifies the malware attack
and financial issues which are challenges
in the online payment. It is important for
the Alipay to have a secure, reliable and
trustworthy payment environment which is
enabled by the cybersecurity. It helps in
attaining a high level of privacy and
confidentiality (Graham, Olson & Howard,
2016).
The growing use of cybersecurity
The growing number of e-commerce
transactions creates new opportunities for
cybercrimes. Alipay always makes sure
that it provides the best payment security
and reduces the burden of the customer
regarding their personal data. The
cybersecurity reduces the risk of fraud at
every step of the checkout. The data raids
have great knowledge of the new
technologies which makes payment
processing a critical part of the e-
commerce business (Cherdantseva, et al.
2016). The online payment offers
convenient and wide options of the online
payment systems. It offers a convenient
way to trade with the customers but
increases the risk of cyber security. It has
plenty of risks as the financial information
of the customers can get reveal during the
online payment (Guo& Bouwman, 2016).
Alipay has even upgraded its payment
system so that it can help users to get back
wrongly transferred funds and defend them
against the fraud. The company has even
backed its upgraded system which can help

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operators to get back their funds which are
incorrectly transmitted to the incorrect
account. The new software of the company
also enhances the anti-fraud mechanism
and assimilates it with the law prosecution
databanks. The operators who uncertain
that transfer is deceitful can prefer to
postponement the payment and advance
their concern on the same platform. It
freezes the transfer. The money is credited
back to the user’s account after the
confirmation of the commitment of the
fraud by the authorities (Gupta, Agrawal &
Yamaguchi, 2016). Alipay also takes stand
for a transfer which seems to be risky
based on the recipient’s transaction history
and other actions. It also alerts the users to
delay the transfer. The online payment
system in China is dominated by Tencent’s
Wechat pay and Alibaba backed Alipay.
Together these two dominate the market
share more than the 90%. The
cybersecurity concern has been grumbled
up with the rollout of the tough
regulations. The company focused on
doing more after the laws in order to
protect the personal and sensitive
information of the customers. Individual
privacy is also focused on Alipay as a part
of the online payment system. The laws
have assisted in protecting cybersecurity.
The authorities have even cut down on
security risks by delivering associated
rules and regulations. The hackers are
anticipated to meet with the criminal
charges for leaking private and sensitive
information of the company. The new laws
have been also implemented by Alipay for
covering regulations associated with the
classified data. It stipulates that the fields
should be secure like sensitive
infrastructure, public telecommunication
services, and the financial sector. The
guidelines of the Cyberspace
Administration of China are followed by
the company (Kent, 2016). Alipay is
required to define its privacy protection to
the users. The company is anticipated to
better protect personal information along
with the user’s data. The company is even

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in the urgent requirement of regulating the
cross border data with the help of security
evaluation.
Conclusion
The cybersecurity crime is the major
concern in the online payment system. The
threat of security exists due to the high
technological advancement. The laws have
an important role in protecting
cybersecurity. The online payment system
eliminates security breaches because of the
human nastiness and lack of awareness.
The cybersecurity crimes can be
minimized by initiating different layers of
security in the organization. If one layer
due to some reason breaches then the next
layer will stand up. After the above
discussion, it can be concluded that there is
a need to introduce innovative laws
concerning cyber security and create trust
among the users.

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References
Abomhara, M. (2015). Cyber security and the internet of things: vulnerabilities, threats,
intruders and attacks. Journal of Cyber Security and Mobility, 4(1), 65-88.
Ben-Asher, N., & Gonzalez, C. (2015). Effects of cyber security knowledge on attack
detection. Computers in Human Behavior, 48, 51-61.
Buczak, A. L., & Guven, E. (2016). A survey of data mining and machine learning methods
for cyber security intrusion detection. IEEE Communications Surveys &
Tutorials, 18(2), 1153-1176.
Carr, M. (2016). Public–private partnerships in national cyber-security
strategies. International Affairs, 92(1), 43-62.
Cherdantseva, Y., Burnap, P., Blyth, A., Eden, P., Jones, K., Soulsby, H., & Stoddart, K.
(2016). A review of cyber security risk assessment methods for SCADA
systems. Computers & security, 56, 1-27.
Choi, Y., & Sun, L. (2016). Reuse intention of third-party online payments: a focus on the
sustainable factors of Alipay. Sustainability, 8(2), 147.
Graham, J., Olson, R., & Howard, R. (2016). Cyber security essentials. Auerbach
Publications.
Guo, J., & Bouwman, H. (2016). An ecosystem view on third party mobile payment
providers: a case study of Alipay wallet. info, 18(5), 56-78.

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Gupta, B., Agrawal, D. P., & Yamaguchi, S. (Eds.). (2016). Handbook of research on modern
cryptographic solutions for computer and cyber security. IGI global.
Kent, A. D. (2016). Cyber security data sources for dynamic network research. In Dynamic
Networks and Cyber-Security(pp. 37-65).
Knowles, W., Prince, D., Hutchison, D., Disso, J. F. P., & Jones, K. (2015). A survey of
cyber security management in industrial control systems. International journal of
critical infrastructure protection, 9, 52-80.
Xu, Y., Ghose, A., & Xiao, B. (2018). The Impact of Mobile Payment Channel on Consumer
Consumption: Evidence from Alipay. Available at SSRN.

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References