Ant Group, the payment affiliate of the Chinese giant Alibaba Group Holding has acquired MoneyGram International for about $880 million. It's a major
Ant Group, the payment affiliate of the Chinese giant Alibaba Group Holding has acquired MoneyGram International for about $880 million. It’s a major step for the BABA company, which operates in online payments industry in China. It’s a major aquisition which will have a number of advantages for the company.
Ant will become the biggest company in its sector, by expanding its services overseas. This way the company will boost its presence, by competing from its rival in China, Tencent Holdings Wechat online payment system. For the last years MoneyGram and Western Union were the two leading companies, that provided online money transfer services to their customers all over the world. These companies had the leading role in money transfer industry with their large networks of retail locations all over the world for the last years.
The combination of the world’s largest online and mobile commerce retailer as of April 2006 and MoneyGram’s network of agents could actually become one of the biggest changes in the retail industry. They will acquire more international consumers, who will prefer to use these transfer retail services rather than using cash for the main transactions. Of course, this major acquisition still needs to be approved by the CIFIUS (the US Committee on Foreign Investment), an inter agency, that is responsible for reviewing these kind of foreign acquisitions.
Eric Jing: CEO of Ant Financial Services Group
According to the CEO of Ant, Eric Jing, the company aims in becoming a worldwide giant. The commitment of Alibaba is to be able to continue to internationalize its e-commerce business in the most successful way. More specifically, the company aims to be able to serve about 2 billion people in the following 10 years, by using the most advanced technologies in its sector. If things go as Eric Jing expects and according to the plans of the company, Alipay will soon be a giant company. More specifically, the use of distributed ledger technology will give the company the ‘tools’ to run its services much faster, more secure and more affordable.