Alibaba Group Holding Ltd (NYSE:BABA) has announced that they are planning to include credit services in Brazil.
Credit services in Brazil
Jack Ma the executive chairman of the company announced the news during Wednesday’s edition of the O Estado de S. Paulo. The e-commerce giant introduced a credit line in China to take care of finances on its website. Ma said, “We want to invest in e-commerce, logistics and inclusive financing.”
the executive however did not give more information about the type of credit operation the company is planning to introduce in Brazil.
The operation in Brazil commenced in 2014 but they experienced challenges on the logistics as well as the monitoring of product authenticity on their website. The executive acknowledged the errors and they reported they are working on improving the situation. According to Ma, the company has a business-to-customer and a business-business type of operations in Brazil. Representatives from the company were not available to confirm Ma’s remarks which he stated on Tuesday at the United nations in Geneva.
Introduction of credit services by the company
The finance arm in Alibaba launched the credit system in China amid efforts by the government to increase financing to small businesses and the consumers. They project labeled ‘Sesame Credit Management’ marked the most recent development in the financial services by the company.
The policy makers were hoping to enhance the flow of credit to privately owned firms which are the major contributors to economic growth in China as well as job opportunities.
Sesame Credit is mainly focused on those with little credit history and may have never obtained any bank loans or even applied for a credit card. However, these people should be active internet users and often shop online, e-pay in time their utility bills, have been using their phone numbers for a long time and have a reliable residential status.
Other players in the market
Alibaba is among 10 other companies which have obtained approval to have privately owned banks aimed at the smaller borrowers. Other companies include rivals such as Tencent and even Fosum International.