Alipay, partners to create cybersecurity fund

File illustration picture of computer keyboard with letters stacked forming the word 'password' taken in Warsaw, December 12, 2013. [Photo / Agencies]

Alipay, the e-payment arm of Alibaba Group Holding Ltd, said on Wednesday it is going to set up a fund with partners to invest in technologies that can enhance cybersecurity.

Hu Xiaoming, vice-president of Alibaba Microfinance Service Group, which oversees Alipay's operation, said in Beijing that his group will invest 40 million yuan ($6.45 million) to build up a joint fund targeting cybersecurity protection.

Hu said the fund is expected to invest in areas such as anti-money laundering, anti-malware and user information protection.

He said a detailed plan of the operation of the fund will be announced later and the fund is expected to work with banks, financial institutions and anti-virus firms.

Despite its rapid development, mobile payment is still a nascent industry in China with many of its users insecure about moving their money on smart devices, Hu said.

It is important for all players involved in the sector to work together to provide better security to online users, he added.