Alibaba’s financial services affiliate Ant Financial has announced its investment in South Korean messaging giant Kakao.

Ant Financial will invest $200 million in Kakao Pay, which is the mobile payments solution of Kakao. The merger of Ant Financial’s global payment platform Alipay and many financial and commerce service networks and Kakao’s platform capabilities will provide more effective and convenient financial solutions for both businesses and consumers. 

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“South Korea is an important market for Ant Financial in its global expansion, and we see many opportunities in the market for innovative services and growth in mobile payments,” said Douglas Feagin, president of Ant Financial International, in a statement.

The investment is part of a huge strategic partnership, helping Ant Financial’s 450 million global users to connect with Kakao Pay’s over 14 million members on its platform. It will also allow Kakao Pay users to make payments on Alibaba’s e-commerce platforms Taobao and Tmall in the future.  

The two companies will share payment resources and include more offline merchants to accept payment through both Kakao and Ant Financial’s mobile payment tools. Alipay will combine its 34,000 merchant base with Kakao Pay, maintaining their single entity and larger merchant base. It will be built on the existing financial services of Kakao on its messaging platform and Ant Financial will help increasing online and offline payment coverage for South Korean users.

This latest move of Ant Financial is part of its global partnerships and investments. In Janaury, the company acquired US-based money transfer provider MoneyGram International as well as Philippines’ Globe Telecom’s Mynt.

Moreover, Alibaba’s financial services affiliate had formed a strategic partnership with Thailand’s e-payments provider Ascend Money to provide services to the Thai market. In India, it invested to Paytm to enter the country’s mobile e-commerce industry.

TagsAlibaba, Ant Financial, South Korea, Kakao Pay, Alipay, mobile payment, e-commerce