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Alibaba-Backed Discount Site Nabs $700M in Financing

The Alibaba-backed Chinese group-discount website Meituan.com is now worth $7 billion after it received $700 million from unidentified investors, CEO Wang Xing told Bloomberg.

The site's transaction volumes hit $7.4 billion (46 billion yuan) last year, Xing said, and that number is expected to hit $16.1 billion (100 billion yuan) this year; by 2020 that figure is anticipate to hit $160.8 billion (1 trillion yuan.)

“We will focus on developing business areas where many people use frequently,” said Xing . That will include hotels, food-delivery and movie tickets. Wang told Bloomberg that Meituan is still planning its IPO, but said that wasn't a focus for the company during the next year or two.

According to a report from Bain & Co., Chinese e-commerce spending is expected to hit $530.8 billion (3.3 trillion yuan) this year. China is estimated to have more than 630 million Web users. Meituan is a Beijing-based site that allows local-business search, including user-generated reviews. Coupons and group discounts are also offered on the site. Meituan has operations in 1,000 cities and roughly 20 million active daily mobile users and is part-owned by Alibaba. The company's sales on the site hit $305.6 million (1.9 billion yuan) in 2014; 90 percent of those transactions are said to be done through its mobile app. It's largest competitor is Dianping.com, the Tencent-backed site that is similar to Yelp.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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