Alibaba Group (NYSE:BABA) Vows to Assist E-Wallets in South Korea as Pouring $1 Billion into Cloud Computing

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Alibaba Group Holding Ltd – ADR (NYSE:BABA) rose over 1.16% in pre trading session on Tuesday as travel restrictions loosen across Asia, Alibaba Group Holding Limited (NYSE: BABA) fintech unit Ant Group has vowed to assist four Asian e-wallets in expanding into South Korea with its cross-border payment service Alipay+.

Reuters reports that e-wallet customers utilizing Alipay+, such as the Philippines’ GCash, Malaysia’s Touch’n Go, Thailand’s TrueMoney, and AlipayHK, may now pay at over 120,000 businesses in South Korea using their local mobile payments applications.

Taxis, duty-free shops, and convenience stores will be among the first merchants to become available.

When collecting and analyzing behavioral data for personalized adverts, the corporations neglected to notify service users and gain prior consent.

Alibaba Out to Inject $1 Billion into Cloud Computing

Alibaba announced a $1 billion investment over the next three fiscal years to help its cloud computing clients as the Chinese e-commerce giant seeks to re-ignite development following a record slump.

The investment includes “financial and non-financial incentives, such as cash, rebates, and go-to-market strategies,” according to a press statement issued by Alibaba on Thursday.

The company also stated that it is developing a program to assist its clients in localizing their cloud computing business demands based on the market.

According to Gartner, Alibaba is the world’s third-largest cloud computing company, after only Microsoft and Amazon. While cloud computing is now a minor component of Alibaba’s overall business, management sees it as a crucial component to future development and profitability.

Because to the revival of Covid in the world’s second-largest economy and a harsher domestic regulatory environment. Alibaba has faced an unprecedented halt in growth amid Chinese economic depression. Alibaba disclosed its first-ever flat revenue increase in the April-June quarter.

Revenue growth in the company’s cloud computing sector has also decreased from the previous quarter. Alibaba’s investment announcement is also part of the company’s larger attempt to develop its cloud computing business outside of China.

Alibaba has established additional data centers outside of China in recent years in order to gain clients in regions such as Singapore and Thailand.

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