What is Alipay

Diego Katzman

Diego Katzman
Published 02/03/2021 · 3 min read

It is a payment solution, not only for physical stores, but also for online merchants. Chinese customers can scan the QR code and pay easily, while eCommerce allows mobile payments to optimise payment for any type of product or service.

Anyone who has travelled to a country with a different language knows how difficult it can be to perform basic tasks such as going to a restaurant for dinner. Or even worse, making an online payment through a method that we do not know and do not trust.

In European countries such as Spain, it is becoming increasingly common to offer personalised experiences to Chinese users to facilitate their purchases and make this process a trustworthy task. Language and local payment methods are no longer a barrier. With the number of Chinese tourists increasing every year across Europe, knowing what Alipay is and offering this local payment method is becoming increasingly important.

Is your business interested in all the uses that Chinese users make of this app? Does Spanish commerce make more and more sense to them? Does it allow for more effective interactions?

The answer is yes, and we want to tell you why.

 

Alipay: key to increasing the confidence of Chinese consumers

It is much more than a payment method and users use it for several reasons:

  1. It is very popular in China. So much so that it has already become an ecosystem of financial services for payments, loans and transfers, among others.
  2. It's very reliable. The platform of China's e-commerce giant, Alibaba. As one of the most widely used local methods in the country, Chinese tourists trust the businesses that offer it.
  3. And it's very safe. The user doesn't even need to carry cash, which increases convenience and security. And that, in times of COVID-19, is appreciated because of the reduced exposure to viruses by avoiding the exchange of cash.

ECommerce is increasingly relying on this payment method for several reasons:

  • It is ideal for small, medium and large stores. There are no limits!
  • It allows businesses to appear on the page of the city where their store is located.
  • Users can find your business information directly in the app.
  • Create promotional campaigns for Chinese customers as well as discount coupons.
  • You can send geolocation push notification offers and news when the user arrives in the given area.
  • Advertising actions are available on offer pages and city pages.
  • Attract more Chinese customers to your business with fast, easy, and smart payments.
  • No extra exchange rate costs.
  • It gives access to more than 600 million consumers.
  • It enables real-time monitoring.
  • It offers support in marketing promotions.
  • It enables fast checkout processing.

In addition, PayXpert is an official Alipay partner and a regulated entity throughout Europe. We can answer any questions you may have about the platform. Still not sure what Alipay is or what its advantages are for your business? Let's go to the origin of everything.

 

History of Alipay

Today, it is a mobile platform that enables online payments. Its origin dates back to 2003, when Tabao launched the first Alipay service. China's first people’s bank, the PBOC, issued the authorisation of controls in June 2010 for third-party payment providers.

The platform was developed in Hangzhou (China) by Alibaba and its founder Jack Ma. Eleven years later, it moved its headquarters to Pudong, Shanghai. And soon after, it equalled PayPal as a mobile payment platform, growing rapidly in number of users — 870 million in 2018. In doing so, it became the No. 1 mobile payment platform worldwide.

Did you know that transfer of ownership of Alipay was highly controversial? The event was widely criticised in the Chinese and foreign media, which damaged investor confidence in China. However, the dispute ended with an agreement between Alibaba Group, Yahoo and Softbank.

In 2013, it launched a financial platform known as Yu'ebao. And in 2017, it launched its facial recognition payment service. No cash, no card. In China you can already pay through facial recognition. While in many Western countries we are still wondering whether to pay with cash or card, in China they are starting to smile at a screen that automatically identifies and confirms the payment.

Technological advances in the payments industry show that the transition to biometric payments is underway. Are they the future of e-commerce? What do you think?

 

Conclusions about Alipay and digital payment methods

Initiatives such as Alipay are improving the way people and businesses buy and receive payments. To do this, it is essential to build on the strengths of payment technology. Alipay is not only a payment method, but the most popular digital service in China. Did you know that around 90% of Alipay users are between 18 and 69 years old? This demonstrates the broad profile and possibilities for merchants. It is an ideal platform to meet digital financial needs at any age.

Even better, it continuously works with its partners to build an efficient ecosystem in line with the latest developments and changes in user behaviour. This helps eCommerce deliver better experiences to consumers as they take advantage of growth opportunities in the payments market.

Are you clear on what Alipay is? Would you like to know more about the platform? Could your eCommerce be the ideal setting to include this payment method? How can you integrate it into your business?

All this and much more on PayXpert.

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