Considering the fact that lenders are exploiting its online lone takers by charging them extra interest rates, Alipay, owned by Jack Ma has decided to fix the cap for interest rtes. This will restrict those who charge interest rates beyond 24%. Alipay is China’s leading internet payment platform.
Alipay belongs to the Ant Financial business which is owned by billionaire Jack Ma.
While making an announcement, Ma published an email saying that he recently came across some lenders charging rates that are exceeding the legal limit and are also using inappropriate ways to collect debt.
The company informed that it has requested all of the account holders and lenders on its site to self analyze and rectify its activities before 30th November 2017.
This news has a great importance on the backdrop of the recent announcement made by the Chinese government that it will restrict country’s small 157 online lenders and free only large state owned firms and giant internet firms.