(Bloomberg) -- Alibaba Group Holding Ltd. is planning to release a US credit card with the aim of encouraging small businesses to buy products on the Chinese company’s web marketplace.
Holders of the Business Edge Credit Card, developed with Cardless on Mastercard Inc.’s network, will be able to choose between 3% cash back or 60-day interest-free payment terms for purchases of up to $40,000 on Alibaba.com. They also will have 90 days to request a refund if they aren’t happy with an order.
The card, set to launch this year, will have an annual fee of $199, Alibaba said in a statement on Thursday.
The offering is designed to make small businesses more confident about buying directly from mostly China-based suppliers and save money amid lofty interest rates, Alibaba.com President Kuo Zhang said in an interview.
Alibaba, struggling in its home market, is keen to expand its international business. The company posted an anemic 4% rise in revenue last month after its Chinese commerce business shrank for the first time in at least a year. Alibaba is locked in a fierce battle for market share with domestic rivals JD.com. and PDD Holdings Inc., which owns Temu.
(Updated to include context on card development in second paragraph.)
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