Alipay: Mechanism, Differences, and Benefits

RUNNING HEAD: Management 0
ALIPAY
IT Infrastructure Management

Management 1
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

Management 2
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).

Management 3
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