Samsung is teaming up with the world's largest online retailer Alibaba to boost usage of its mobile payment service Samsung Pay in China. The two companies plan to sign a contract on Friday, IT industry sources said Wednesday.

The deal will enable customers to buy products with Samsung Pay instead of AliPay. Some 450 million people use AliPay in China.

Samsung once ranked No. 1 in smartphone sales in China but has plunged below the top five after local manufacturers like Huawei and Xiaomi offered more affordable models.