With the new function it is possible to buy in groups to get big discounts
Following the intuition of Pinduoduo, a Chinese e-commerce platform that allows users to participate in group buying deals, Alibaba Alipay has decided to launch a group-buy function within its app.
The feature, called Pintuan (meaning group-buy) can be found on the main interface of the Alipay app. The main idea of the app is that for which a product has significant discounts on price if to buy it is a group of people at the same time.
Offering the feature within Alipay is also a step towards making the mobile wallet an all-in-one app
The products sold on the new function of Alipay come from Taobao, the e-commerce platform of Alibaba, and are discounted only at certain times of the day (9:00, 14:00 and 19:00) and in limited quantities.
Currently Alipay is one of the leading mobile payments services in China, together with Tencent’s WeChat Pay. Alipay, moreover, is trying to expand its offer to reach its rival WeChat Pay. Alipay has been adding more services within its app – such as taking out a loan, paying bills and even making hotel and flight bookings.
Pinduoduo within three years became the third-largest e-commerce firm in the country, behind Alibaba and JD.com
The social commerce model of Pinduoduo is part of the social + business model that many Chinese internet companies are adopting. And thanks to this model, Pinduoduo founder and chief executive Colin Huang became one of China’s richest people.
Given the success of this model, companies like JD.com and Taobao have also tried to offer group purchasing methods. Taobao had launched a similar feature called Taobao Tejia and JD.com adopted JD Pingou.
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