Li Ka-shing, Jack Ma team up to expand mobile payments in Hong Kong

HONG KONG — Two of Greater China’s best known tycoons, Hong Kong’s Li Ka-shing and Chinese Internet entrepreneur Jack Ma, are joining forces with the aim of taking the scope of mobile phone payments in Hong Kong to a whole new level.

CK Hutchison Holdings, Mr Li’s flagship conglomerate, and Mr Ma’s Ant Financial Services Group, parent of online payment service Alipay, on Tuesday said they were forming a strategic partnership to bring so-called digital wallet services to more consumers in Hong Kong.

The two companies will form a 50-50 joint venture to integrate online and offline Hong Kong dollar payments under the AlipayHK brand. The agreement will make the AlipayHK service available in CK Hutchison’s vast network of shops.

“By leveraging CK Hutchison’s extensive market presence and combining its commercial experience with Ant Financial’s technology expertise, we will bring great benefits not only to our telecoms, retail, and other customers of the group, but also to all businesses in Hong Kong,” said Mr Canning Fok, co-managing director of CK Hutchison, in a statement.

Ant Financial rolled out AlipayHK’s mobile wallet and payments app in the city in May, heating up competition in the market against Apple Pay, Samsung Pay, Android Pay and Tencent Holdings’ WeChat Wallet service.

It attracted more than 100,000 active users in the first two weeks after its launch. The mobile app is now accepted in about 4,000 retail outlets in the city. In Hong Kong, CK Hutchison has more than 600 stores selling everything from telecommunications, food and electronics to wine, and health and beauty products. Households using utilities provided by CK Hutchison’s affiliated companies will also be able to pay using AlipayHK.

On top of in-store payment services, AlipayHK also enables many in-app lifestyle features, such as third-party insurance products, and the ability to receive offers like food and beverage vouchers and sticker rewards from local partners, such as online dining guide OpenRice.

“There are millions of people travelling across the Guangdong-Hong Kong-Macau Greater Bay Area every month. We believe that our users will enjoy the tremendous benefits delivered through this strategic partnership,” said Mr Eric Jing, the chief executive at Ant Financial.

Mr Paul Haswell, a partner at international law firm Pinsent Masons, said he would not be surprised to see Ant Financial take advantage of Mr Li’s “global empire” to drive Alipay’s adoption around the world.

“We can expect AlipayHK to initially occupy a dominant position in the local digital finance space, competing against offerings from banks and wealth management companies,” Mr Haswell said.

A spokesman for CK Hutchison said the two companies are eager to make the partnership a success before exploring other possibilities. CK Hutchison’s businesses range across ports, retail, infrastructure, energy and telecommunications.

Mr Ma, the executive chairman of Alibaba Group Holding, has invested in a unit of Shanghai-listed milk producer Inner Mongolia Yili Industrial Group and even China Super League football club Guangzhou Evergrande. SOUTH CHINA MORNING POST