Alibaba launches credit card for small businesses

Alibaba.com, the cross-border B2B e-commerce platform operated by Alibaba Group, has launched a new credit card aimed at shoppers in the United States as part of its strategy to attract customers and increase sales in the country.

Called Alibaba.com Business Edge, the card offers rewards to small businesses that buy from suppliers on the platform. According to a statement from the company on Thursday, it is the first credit card of its kind, developed in partnership with Mastercard and San Francisco-based fintech Cardless.

The move is part of Alibaba’s efforts to expand its international e-commerce presence amid slowing growth in China. The company’s international arm, Alibaba International Digital Commerce Group, is currently its fastest-growing unit, with revenue up 32 percent in the last quarter, driven by its Lazada and AliExpress platforms.

The Business Edge card, which has an annual fee of $199, was created to help small business owners grow their businesses and manage their finances more efficiently. It offers 3% cash back or up to 60 days of interest-free payments on purchases of up to $40,000 per year on the platform. Users will also receive coupons after reaching certain spending thresholds. Applications will open later this year.

“The platform is constantly looking to add value to businesses, especially small and medium-sized businesses, that use our services,” said Rah Mahtani, Alibaba.com’s chief marketing officer for North America.

With ambitious goals, Alibaba.com expects to reach $60 billion in gross merchandise value (GMV) by 2024, a 20% increase from the previous year. Over the past five years, the platform’s GMV has grown sevenfold.

In addition to the US, the platform is also investing in Europe. Ahead of the Paris Olympics, Alibaba hired basketball player Tony Parker as a brand ambassador and launched sales campaigns involving more than 15,000 merchants and one million products.

Founded in 1999, Alibaba.com connects Chinese suppliers with overseas businesses and has over 200,000 suppliers, 90% of whom are based in China. Most of the products offered, such as industrial machinery and construction materials, are intended for commercial use.