Think back to when Christoher Columbus theorized that the world was round. Many thought he was insane, yet it was a history defining moment. Alibaba Group Holding Ltd (NYSE:BABA) CEO, Jack Ma, also dreams of a history defining moment. The retail mogul recently disclosed that his company is currently testing a technology feature that will allow consumers to pay, with their face. The disclosure was made at the recent CeBit Conference currently being held in Hannover Germany.
The pioneering technology is being tested by Affiliate Company of Alibaba, Ant Financial and Ma hopes to take the company public in 2017. Ant Financial is a company that operates Alibaba’s Alipay system and this partnership seems to be blossoming even more.
While being modest, Ma described the ground breaking technology as being ‘a small innovative product.’ I beg to differ, as this would change the face to consumer payment completely. Based on the initial reasons for rolling out such technology, one big feature will be the elimination of passwords when making online payments. In addition the worry about security will be significantly reduced. Demonstrating the process on a smartphone, the entire process was over in six seconds. Not only will this product offer a quick easy ad secure payment option, but it is interactive and intriguing. Sources close to Alibaba noted that the company was serious about taking the technology mainstream. One thing is for sure, an invention of this magnitude will serve all companies involved extremely well.
The planned private placement of shares for Ant Financials will definitely draw attention especially in light of the pending technology. With the affiliate company already valued at between $35 billion and $40 billion according to Shanghai Securities News a state run newspaper. Alibaba’s association and innovative edge will serve both companies in the long run and the pay, with face technology even though in its infancy stage will be a positive boost. While Ma did not comment or give specifics about the launch or release date, one thing is for sure; interest is already generated.