Alternative Payment Solution: Alipay
Alipay is the largest alternative payment services provider globally in terms of transaction value. It is a subsidiary of Ant Financial Services, which is effectively controlled by Alibaba Group Holding Limited. It allows users to make online, in-app, and in-store payments at home and abroad as well as make fund transfers. It is the primary mode of payment in Alibaba’s online marketplaces, including AliExpress, Tmall, and Taobao. In the fiscal year 2017 ended March 31, almost 72% of the gross merchandise value on Alibaba’s Chinese marketplaces were settled via Alipay. The solution has now become mainstream in China and is used to make payments for almost everything, from retail stores to taxis to hospitals. Over 40 million Chinese merchants now accept Alipay as a payment method in their stores.
Launched in 2004, Alipay is now accepted in more than 110 countries, allowing Chinese tourists to make payments in Chinese yuan, with the amount settled in 27 international currencies. Outside of China, Alipay’s strategy focuses on onboarding overseas merchants wherever Chinese tourists are likely to shop. As part of its expansion, it has collaborated with a number of banks and payment service providers globally. Overall, it has partnered with over 250 overseas financial institutions and payment solution providers, making the service accessible to Chinese tourists in overseas countries and also for foreign customers who purchase products from Alipay-partnered Chinese e-commerce sites.
In addition to Mainland China, Alipay launched its localized app AlipayHK for Hong Kong residents in May 2017. Initially the service was made available at over 2,000 merchants in Hong Kong. In April 2017, Ant Financial Services merged with helloPay, a payment solution developed by Southeast Asian online marketplace provider Lazada. Post-merger, helloPay has been rebranded as Alipay in the countries in which it operates, including Singapore, Malaysia, Indonesia, and the Philippines.
The report provides information and insights into alternative payment solution Alipay, including -
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