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Chronicles

The story behind the story

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Ant Group partners with BNPL service Splitit to let Alipay users on AliExpress in Europe pay for items in installments, starting in Germany, Spain, and France

Wall Street Journal :

Wall Street Journal

Context & Ripple Effects

Ant Group has spent years building European acceptance for Alipay — an eight-year UEFA deal put the wallet at Euro tournaments — while Alibaba opened AliExpress to vendors outside China, starting in markets including Spain and Italy. What was missing was credit at the point of sale.

Financing partnerships are a proven playbook for Ant: Apple used Alipay to offer Chinese customers up to two years of interest-free financing. The Splitit deal exports that model outbound, and it lands just as Beijing moves to force Ant to share its consumer-credit data with the central bank — credit is the most politically sensitive layer of the business.

First-order effects

  • Alipay users shopping on AliExpress in Germany, Spain, and France can now split purchases into installments, handing Splitit a distribution channel into Ant's user base without either side building new checkout rails.
  • AliExpress merchants in those three markets gain an embedded financing option aimed at conversion on cross-border orders, while Ant gets usage data on European installment behavior.

Second-order effects

  • The deal lays payment groundwork directly ahead of Alibaba's plan to launch Tmall in Europe with a Spain pilot — the same countries where installment checkout is now live become the beachhead for a second marketplace.
  • Standalone BNPL providers and rival marketplaces in Germany, Spain, and France face a well-capitalized entrant that bundles credit with an existing shopper base, pressuring them toward their own marketplace tie-ups or fee cuts.

Third-order effects

  • With Chinese regulators forcing Ant to share consumer-credit data domestically, partnering with local BNPL firms becomes the template for growing credit products outside Beijing's reach — though European data-protection regimes will test whether the same sensitivity follows the product abroad.
  • If the pattern holds, checkout competition shifts from payment methods to underwriting: whoever owns the wallet owns the installment relationship, and marketplaces increasingly choose their credit partner the way they once chose a payments processor.

The trend: Chinese payment platforms are entering European e-commerce through partnership-wrapped installment credit, making BNPL a default feature of cross-border checkout rather than an add-on.

Discussion

  • @jchengwsj Jonathan Cheng on x
    Chinese internet giant Alibaba started allowing shoppers in Europe to pay for purchases on its international e-commerce platform only after receiving their merchandise, in an attempt to boost global sales as growth at home slows. @hwclarence @shenlulushen https://www.wsj.com/...