"The purpose of the collaboration with Capify is to increase traffic and encourage more people to buy things on the internet. We're not competing with banks and we're not trying to create competition here. Buying and selling is the core of our business. We want to make it easier to buy online anywhere, any time."
The system, labelled "Alibaba.com e-Credit Line", will return a decision in 60 seconds and can be repaid in either daily or weekly amounts. It should be beneficial to Alibaba, as Australia is the company's third largest market with 2 million buyers signed up. For Capify, the move will allow them to expand their loan book, with the company aiming to lend AUS$40m over the next 12 months.
This week marked the launch of Capify,following the amalgamation of AmericMerchant, United Kapital, True North Capital and AUSvance. One of the advantages heralded by CEO David Goldin was that it allowed “one stop shopping” as potential partners are able to deal with just one company and gain internationally viable credit options. With Alibaba's international presence, perhaps this contributed to the partnership decision.
Capify becomes the fourth platform to partner with the Chinese e-commerce giant. Back in February, AltFi reported on Lending Club's new partnership – providing credit options to US businesses buying from Chinese suppliers. In March, AltFi reported on a similar story as the Chinese platform had teamed up with Ezbob and Iwoca, with Iwoca offering loans up to £50K at 1.5-2% and Ezbob offering between £50K and £120K for 0.75% a month.
Alibaba has found an important partner to expand its operations around Australia. For Capify, the deal – whilst certainly decided before the rebrand was announced – may be indicative of things to come for the new multinational.