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Alibaba’s Yu’ebao from an US Perspective

Yu’ebao appeared out of the blue in 2013, arriving in the wake of Alipay’s major shake-up of China’s money market financial instruments. What impact will Yu’ebao have on commercial banking and the rest of the financial industry?

Yu’ebao appeared out of the blue in 2013, arriving in the wake of Alipay’s major shake-up of China’s money market financial instruments. However, by the end of May 2014, Yu’ebao had more than 100 million users and was worth more than 570 billion RMB. Is there now a bottleneck that will curtail its growth and what does its future hold in store? What impact will Yu’ebao have on commercial banking and the rest of the financial industry? An in-depth comparison with US payment innovation Paypal helps us understand the developmental context of Yu’ebao and future trajectories.

Case advisor: 
Ouyang Hui
Case writer: 
Yang Guchuan
Keywords: 
internet banking, financial innovation