Ant’s swoop on Worldfirst sparks fears for security

A CHINESE takeover of a major British payments firm has sparked national security concerns.

Ant Financial – founded by billionaire Jack Ma, a member of China’s ruling communist party – is buying London-based Worldfirst for a reported £550m.

The deal could give Ant control over sensitive financial data and millions of payments processed on behalf of UK citizens and businesses. But it comes after US officials blocked a similar takeover by Ant in America on national security grounds.

And there are fears that should a serious rift develop between the UK and China, Britain’s payments could be cut off, crippling businesses.

Last night MPs and experts called on the Government to thoroughly scrutinise the takeover of Worldfirst. Bob Seely, a Tory MP on the Commons foreign affairs committee, said: ‘I have been concerned by our laissez-faire attitude to many of these deals, especially under previous governments.

‘We should adopt a coherent strategy with our allies such as the US, Canada and Australia towards Chinese investment.’

Labour’s Peter Kyle, an MP on the Commons business committee, said: ‘We need to learn from the experience in America and consider being more cautious.

‘You only need to get one of these decisions wrong and it can still have a very big impact on millions of people.’

John Hemmings, an Asia expert at the Henry Jackson Society, pointed to a US decision to block Ant Financial’s takeover of payments firm Moneygram last year, saying: ‘It is certainly a deal that deserves to be closely reviewed.’

In an email to Worldfirst’s customers, chief executive Jonathan Quin said the British firm was ‘proud to be a part of the Ant Financial family’.

Ant Financial said: ‘Alipay and Worldfirst’s capabilities and international footprints are highly complementary, and together, we will be able to better serve small businesses and promote financial inclusion.’