Research On "Alipay" Business Model

The third party payment platform developed quickly with the development of the e-commence and becomes the newest way of trading payment. The Alipay internet technology co. Ltd established by the end of 2014 by Alibaba, after development and innovation in the recent decade, has succeeded in becoming the most important third party payment platform in China and has an impressive market share. This article is about to explore the reason of Alipay’s big success from the business model’s perspective and the research will have important significance.Through reviewing and summarizing the related theories of business model and the elements of business model, this article is trying to sort out and categorize this definitions. Based on that, further research the elements of the business model of Alipay by Business Model Element Canvas. By analyzing the nine elements of business model of Alipay: customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, cost structure, the article discovers the impressive good performance of Alipay in key resources, business channel and revenue streams; while the lack of performance in value propositions, key partnerships customer relationships. After that this article SWOT evaluation of every elements of the business model of Alipay, analysis the competitiveness of Alipay’s business model, then give five advices including keeping innovation advantage to implement the value proposition, reduce the dependency of partnerships to lessen the correlation risks, compete actively to reduce the loss of customers and so on.This article is trying to figure out the competition power of Alipay’s business model and the possible direction of the business model in the future in order to form a conclusion of business model which can be used for and enlighten other companies.