An Innovation of online Payment the “kung Fu” of Alibaba

An Innovation of Online Payment[pic 1]

The “Kung Fu” of Alibaba

Liu Zhenhuan, 2014.12.17

Brief Introduction

Tired of taking your wallet and phone with you every time you need to make a run to the convenience store? Alipay “Kung Fu” let you set an image of any body part to become your personal bar code. Use your face, a birthmark, a tattoo, or even your pet. When you make a purchase, the object of your choice is scanned and the amount will be deducted from your Alipay account.

The next big disrupter, “Kung Fu”, took the Google Wallet concept one-step further. Alibaba made a common modern Chinese impression “Swiping Face Card” possible, and made a piece of hardware that replaces wallets with faces. Planning on launching in June 2015, the system is expected to take place in convenient stores, supermarket and shops, and it aims to eliminate the use of credit card at those locations. With the introduction of “Kung Fu”, consumers can leave their wallet at home, yet still able to pay for goods and services. “Kung Fu” is far more secure than credit card and it also does everything that mobile payment can do, without the downside of running out of battery or losing your phone.

Background of Alipay

Alipay.com is a third-party online payment platform with no transaction fees. It was launched in China in 2004 by Alibaba Group and its founder Jack Ma. According to analyst research report, Alipay has the biggest market share in China with 300 million users and control of just under half of China's online payment market in February 2014.

Alipay provides an escrow service, in which consumers can verify whether they are happy with goods they have bought before releasing money to the seller. This service was offered for what the company says are China's weak consumer protection laws, which have reduced consumer confidence in C2C and even B2C quality control.

Details of “Kung Fu”

On April Fools’ Day 2014，Alipay announced officially that Alipay X Lab has developed a total new payment product called “Kung Fu”. It uses the technology of APR（Augmented Pay Reality）and IRS（Information Recall Secure）, giving the value to the scanning tangible objects, so that they can be of the capability to pay.

• Is it just a joke on April Fools’ Day?

"You just have to scan the tangible objects which needed to be given payment privilege, and then set an upper limit.” The designer of Alipay X Lab, Monica, when explaining the revolutionary product.

• The same technology with Google Glass?

"APR technology can do the analysis on the object, and identify the characteristics at the pixel level. IRS system will be based on information technology parsed APR, retroactive to match the encryption in the cloud storage of personal payment account. “Choose a unique set of physical characteristics authorization, and match account number, account security guarantees funding quota.” One Alipay X Lab technical expert explains these two technologies.[pic 2]

APR technology is the application of Augmented Reality in the domain of payments. Through the computer information technology, space positioning technology, human intelligence and technology to realize the actual situation, the real-time interaction. In fact, we are no stranger to it, in some Spy Game films, agents who wear a special glasses see anywhere with reading the relevant information. That is augmented reality technology.