Alibaba Group Holding Ltd said it is developing virtual-reality-enabled mobile payment technology - as the e-commerce giant bets big on VR-driven shopping for future growth and is wrestling with arch rival Tencent Holdings Ltd for supremacy in the booming digital payment market.

The Hangzhou-based company confirmed to China Daily on Monday that it is working on the futuristic technology, which could allow users to pay bills in a 3-D virtual world by nodding their heads or making other gestures to log in payment accounts.

The revelation of its latest move comes shortly after the company offered a preview of its Buy+ virtual store. Wearing a headset and with two hand-controllers, consumers can get into a 360-degree virtual environment where they can hold, feel and try on bags, shoes and lingerie as they do in real life.