Over the last six months, Ant Group has seen the number of international users of its mobile payment services in China quadruple, driven by the launch of the ‘International Consumer Friendly Zones’ programme in March, which has now expanded to 70 Chinese cities.
Transaction volumes of inbound tourists using Ant Group-supported mobile payment services grew by sixfold between March and August 2024 year-on-year, according to Cyril Han, president and CFO of Ant Group.
At the 2024 INCLUSION·Conference on the Bund, Han explained that this surge has created significant business opportunities for local merchants. The number of Chinese merchants regularly servicing overseas travellers through the company’s mobile payment solutions has tripled during the same period.
“Inbound tourism to China is experiencing a robust recovery, driven by a combination of government policies and private-sector initiatives like the International Consumer Friendly Zones programme,” explained Liu Yufeng, deputy secretary-general at the World Tourism Alliance, a China-based international tourism organisation. “These efforts have significantly alleviated challenges such as visa requirements, payment accessibility, and transportation capacity, making it easier for people to explore China.”
Ant Group launched the International Consumer Friendly Zones programme in Beijing in March 2024 to improve digital payment options’ accessibility and ease of use for international travellers. Alongside the 70 Chinese cities, the programme also covers 500 tourist hot spots, such as the Bund in Shanghai and Hangzhou’s famed West Lake.
Since 2019, the People’s Bank of China has supported Ant Group as it collaborated with international card networks and overseas digital wallets to drive innovation in inbound mobile payments, a collective effort known as the ‘China Payment Facilitation Partnership’.
Expanding user services
During the 2023 Hangzhou Asian Games, Ant introduced two mobile payment solutions for international visitors, and the number of supported international payment partners has continued to grow since then.
Through Alipay+, the cross-border mobile payment solution operated by Ant International, international visitors can pay with their home e-wallets across China. Alipay+ currently supports 13 e-wallets and payment apps in Asia for use across an 80-million-strong merchant network in China, an increase from 10 payment partners in 2023.
The other option enables visitors to bind major international bank cards from the likes of Visa, Mastercard, JCB, Discover, and UnionPay International to the Alipay app to access an array of local services, including shopping, dining, ride-hailing and public transportation, without needing a Chinese-mainland bank account or phone number.
Ant International also revealed its plans to expand the number of card networks supported on Alipay to seven after American Express received approval for an inbound wallet solution in China.
Mohammed Badi, president of global network services at American Express, said: “American Express and Alipay have discussed potential areas of collaboration to deepen our partnership and we recently received approval from the State Administration of Foreign Exchange for an inbound wallet solution, which we very much appreciate. Both American Express and Alipay will share more information with our customers, stay tuned.”
In addition to increased payment volumes, inbound tourists are embracing value-added services available on digital wallets for a more immersive local experience. The number of Alipay+ partner wallet users redeeming digital coupons increased by 105 per cent quarter-on-quarter over the past six months.
Ant Group backs tourists
Ang Eng Siong, CEO of OCBC China, also commented: “OCBC was the first Singaporean bank to offer global cross-border payment services through our own app via Alipay+, enabling our Singaporean customers to make payments easily at millions of merchants within Alipay+’s global ecosystem, including those in the Chinese mainland. As Alipay+ continues to expand its global services, we will keep improving our products and enhancing user experience, striving to gain recognition in even broader markets.”
In the first half of 2024, the number of users utilising Alipay+ via the OCBC app doubled on year, with the transaction amount nearly tripling, Siong added.
Peng Yang, CEO of Ant International, noted the impact of digital innovations on opening low-cost growth paths for SMEs across the main businesses of the Singapore-based company: “Alipay+ has established a global network of 90 million merchant partners across 57 markets to make global travel seamless; while WorldFirst and Antom offer secure and fast digital payment solutions tailored to the needs of SMEs, global merchants and platforms. We look forward to expanding our partnership for digitalisation and inclusion in all regions.”
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