Ant Group, the financial technology powerhouse associated with Alibaba Group Holding, is restructuring its mobile payment platform Alipay into two separate business units. This latest move aims to stimulate growth and enhance the company’s focus in key areas.
Two new business units for targeted operations
The restructuring will create the Digital Payment Business Group and the Alipay Business Group, each with distinct responsibilities. According to an internal letter shared by Ant Group’s president Cyril Han Xinyi on Monday, a “rotating presidential system” will be implemented for these units, with each president serving a six-month term.
The Digital Payment Business Group will concentrate on innovative payment solutions and integrate five departments: the Online Payment Business Unit and the Offline Payment Business Unit. Meanwhile, the Alipay Business Group will prioritise growing its user base and monetising Alipay’s services. This division encompasses six units, including advertising and digital products.
Han stated in the internal memo that Alipay’s transformation from a tool-based app to an Internet platform has reached a significant milestone. The restructuring also underscores Alipay’s commitment to digitising services across industries.
The restructuring follows broader corporate changes
This move is part of a broader reorganisation within Ant Group, which began earlier this year. In March, the company restructured several operations into independently run units, such as its overseas division Ant International, database platform OceanBase, and Ant Digital Technologies. Each unit now operates under its board of directors.
In addition, Ant Group has made notable leadership changes. According to reports from Chinese news outlet Caixin, Liu Zheng, an Alibaba veteran and the former chief financial officer of Alibaba’s smart logistics arm Cainiao, has been appointed Ant’s new CFO. Cyril Han, the company’s CFO since 2020, will be CEO in March next year, succeeding Eric Jing Xiandong.
Speculation over IPO plans continues
The restructuring comes amid speculation about Ant Group restarting its initial public offering (IPO) process after its record-breaking US$39.7 billion IPO was halted by Chinese regulators in 2020. Despite recent business changes, Ant Group has denied rumours of immediate plans to go public, maintaining its current focus on operational improvements.
Earlier this month, Jack Ma, founder of Alibaba and Ant Group, made a rare public appearance at Alipay’s 20th anniversary event in Hangzhou. During his speech, he expressed confidence in the company’s future and predicted more “miracles” in the next 20 years.
While Ant Group declined to comment further on Tuesday, the latest restructuring reflects its strategic pivot towards growth and innovation in a highly competitive fintech landscape.
