Build Alipay ecosystem in Brazil

Digital payment has proven to be an effective tool to narrow the gaps in financial inclusion. In this area, China has outperformed most developed countries, with Alipay taking the leading role. After achieving critical mass in the domestic market through building a comprehensive ecosystem, Alipay, like many other Chinese tech giants, is also considering expanding its reach into the global market. Among emerging countries, Brazil stands out as being an ideal target for many reasons. Currently, large portions of Brazilian population and a significant number of small businesses are underserved by a concentrated and highly profitable banking system. Additionally, the domestic Brazilian FinTech market is still nascent and fragmented. By building up an Alipay-like payment ecosystem in Brazil, Alipay could create synergy with the local financial system and enable players and users to capture more value from it. This study analyzes the dynamics and structure of Alipay's ecosystem, decodes the key drivers of its success in China and reviews some of its first experiments in the global market. This study also assesses the FinTech market in Brazil by evaluating opportunities Alipay could capture, and risks and challenges it has to take into consideration. This study also includes an analysis of Alipay's Artificial Intelligence development domestically and internationally. Finally, this study develops strategic suggestions for Alipay to enter the Brazilian market.

Department dc:contributor.department

Sloan School of Management.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2018

Author dc:creator

• Qiu, Peipei, S.M. Sloan School of Management

Advisor dc:contributor.advisor

• Simon Johnson.

• Sloan School of Management.

Statement dc:rights

• MIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/117940

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/117940