Alibaba Group Holding Ltd. has inked a new deal with Samsung Electronics Co. to giving a boost to mobile payments. The collaboration will help Samsung to gain a foothold in the Chinese market, while assisting Alibaba in expanding its global outreach.

According to this agreement, Samsung Pay will also work with Alipay. Instead of opening the Alipay app, the users can scan the code using the Alipay option embedded in the Samsung Pay wallet. Samsung Pay allows the use of Near Field Communication (NFC) technology as well as magnetic strip technology.

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Alipay currently has 450 million subscribers and is estimated to process 170 million transactions daily, earning the title of being the biggest payment service in China.

Samsung Pay, on the other hand, entered the Chinese market in March this year. The collaboration with Alibaba will help Samsung to navigate through Chinese regulations.

Samsung is looking to stem its downward trend in China. The electronics giant saw its market share at seven percent in the first quarter of this year, down from 10 percent in the same quarter of the previous year. The company plans to use Samsung Pay as its major selling point in China. Samsung is already collaborating with UnionPay, which is a dominant card issuer in China.

The deal will help Alipay to raise its international profile. The company increased its global presence by introducing its services in Europe last month. It is also collaborateing with Uber for ride payments. Alipay is run by Ant Financial Services Group, which financial services affiliate of Alibaba Group Holdings.

TagsSamsung, Ant Financial, Alipay, Uber, Alibaba, Samsung Pay