Alipay.com, the third-party Internet payment subsidiary of Alibaba Group, has reached a deal with 11 vending machine operators in China to provide advance payment options when users need snacks.
The new service allows users of Alipay's payment service to buy goods from vending machines with their Alipay clients. A user can use a mobile device that has the Alipay app instead of cash when purchasing food and goods from these vending machines.
According to Alipay, the 11 vending machine operators include Ubox, Miyuan, Minifounder, and Dingding. Meanwhile, it has formed partnerships with upstream vending machine makers like Bingshan and Easy Touch. The 11 vending machine operators reportedly occupy over 90% market share in China.
At present, over 100 types of vending machines across the country support payments with Alipay. In the future, new vending machines made by those upstream makers will integrate Alipay's payment system. At the same time, existing vending machines in the market will gradually support this new service.
Li Minghao, president of Ubox, said that the company's 12,000 vending machines will support Alipay service as soon as possible. Alipay also revealed that it will upgrade the payment application and complete the deployment at 50% more vending machines along subway lines before the end of 2013.