Its revenue per user is just 121 yuan, still small compared with traditional financial institutions.ĭigital financial services contributed more than half of Ant's overall revenues in the six months ended June 30. Photo: APĪnt is cross-selling and upselling higher-value financial products to users of its payments network and sees engagement with its customers growing tenfold in the coming five years.Īnt acts as a lending, investment and insurance products platform for individuals and underserved small businesses. Photo: AP alt=Alibaba co-founder Jack Ma is a controlling shareholder of Ant Group and will retain his voting rights after the company's IPO. The compound annual growth rate in Ant's annual active users was 15 per cent between 20.Īlibaba co-founder Jack Ma is a controlling shareholder of Ant Group and will retain his voting rights after the company's IPO. PayPal generated revenue of US$12.8 billion in the first nine months of 2019 and US$9.88 billion in the first half of this year.Īnt sees further room for growth as China's digital payments transaction volume is expected to increase to 412 trillion yuan by 2025, from 201 trillion yuan last year, according to consultancy iResearch.
It dwarfs Palo Alto-based PayPal's user base of PayPal, which had 346 million active accounts as of June 30 and is the largest digital payments platform outside China. That company, then known as Zhejiang Alibaba E-Commerce Company, changed its name to Ant Financial and eventually morphed into Ant Group.Īnt reported revenue of 118.19 billion yuan (US$17.7 billion) in the nine months ended September, a 43 per cent increase over the same period in 2019. In 2011, Alibaba, the owner of the Post, spun off Alipay, so that it could apply for a payment business licence in mainland China. "We believe that if we can enable ordinary people to enjoy the same financial services as the bank CEO and help mom-and-pop shops to obtain growth financing as easily as big firms, then we will be a company that belongs to the future," Eric Jing, Ant's executive chairman, said in the company's prospectus.Īnt traces its origins back to 2004, when Chinese e-commerce giant Alibaba Group Holding created Alipay to bridge a lack of trust between buyers and sellers in the early days of online shopping in mainland China. In this explainer, we take a look at the growth potential of Ant's key businesses and why the company could soon be worth more than the world's largest bank, JPMorgan Chase. The system's cogs are oiled by a trove of data gathered in China, the world's most populous country, which makes pricing more accurate and efficient than at traditional banks.Īnt plans to plough the US$34.5 billion it is raising from dual listings in Hong Kong and Shanghai into future revenue drivers, such as blockchain, growth outside China and merchant services. Consumers can click on the Alipay app for services ranging from food deliveries to garbage collection. The world's most valuable privately owned company is also developing services to make daily life easier. Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China.
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