Chinese e-commerce and online payment behemoth Alibaba Group has signed a memorandum of understanding with MasterCard.

The MOU aims to forge joint efforts to establish an enhanced e-commerce environment to benefit consumers and small businesses within and outside China. The two parties have also agreed to jointly address issues of common interests, including a strong mutual commitment to help combat intellectual property infringement and to provide a safe and efficient payment experience for users of Alibaba's platforms such as AliExpress and its payment affiliate Alipay.

Both parties have agreed to cooperate on innovations including cross-border payments, acceptance, security and risk management as well as with MasterPass, the MasterCard digital service that allows consumers to use any payment card or enabled device to discover enhanced shopping experiences.

Financial terms and next steps in this arrangement between the companies has not yet been revealed.