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If you're wondering what a society fully integrated with digital payments looks like, look to China.
Today, it's leading the world in digital payments. Over eight in 10 people (84%) in China already use mobile wallets, with the availability of low-cost smartphones and high-speed internet providing the necessary backbone for its widespread use.
For businesses looking to expand in China, it is crucial to understand Alipay, the leading digital platform in the country. Connecting over 80 million businesses with more than one billion consumers, Alipay is an indispensable payment method for merchants who want to do business in China, one of the world's largest consumer markets with a population of more than 1.4 billion.
In the digital era, Alipay has evolved from a trusted e-wallet into an all-in-one digital platform for daily services that connects businesses, institutions, service providers, and other partners with consumers. Alipay enables partners from various industries to offer safe and convenient payment options. It also enables partners to communicate and deliver different digital services to their customers in China through Alipay's mini programs, their own official accounts on the platform and other tools. Learn more about Alipay and how it fits into your expansion plans.
What is Alipay, and how does it work?
Alipay is already a household name in China. Founded in 2004, Alipay is currently owned and operated by the Ant Group, a leading fintech company.
Like most mobile wallet-based payment methods, Alipay lets users bind debit or credit cards to make online and in-store purchases with their smartphones. Alipay is free to use — simply download the Alipay app, and then bind an international card to your Alipay account.
With Alipay, users can pay by various payment methods — whether it's paying online, or making in-store payments via QR code or tapping with Alipay Tap! They just need to make sure the merchant accepts Alipay as a payment method.
Users can pay online via a redirect to the Alipay app, or by scanning a QR code on a computer screen. They can also pay in-store by scanning merchant-generated QR codes or, vice versa, by generating QR codes that merchants can scan.
Alipay vs. Alipay+: What's the difference?
You might have encountered Alipay and Alipay+ and wondered, what's the difference?
If Alipay is a digital platform, think of Alipay+ as a connector or aggregator of different mobile payment methods worldwide. For example, you can offer Alipay as a payment method via Alipay+'s single integration.
Merchants looking to expand to multiple Asian countries can benefit from a one-time integration of Alipay with Alipay+, as it already connects or aggregates popular local payment methods under one platform.
This benefits merchants who deal with cross-border payments since, whether shopping or traveling, Asians prefer to use the local payment methods most familiar to them, even when transacting overseas. With an Alipay+ integration, merchants can easily make this possible.
What are the key features of Alipay?
Alipay gives users the flexibility to pay as they prefer, whether making online or in-store purchases.
- Online transactions. Paying online is as simple as selecting Alipay as your preferred payment method at checkout. Just make sure the merchant accepts Alipay as a payment method.
In-store transactions. Pay in-store using your mobile phone through the following methods, both of which use QR codes:- Merchant-presented mode. This involves scanning the merchant's QR code, often posted near payment counters or on restaurant tables. Just make sure you have an internet connection to complete the transaction.
- Customer-presented mode. Merchants with a point-of-sale (POS) system can also ask customers to generate a QR code or present a payment code, which can then be scanned to complete the transaction.
- Security features. Considering the volume of its daily transactions, Alipay has robust security measures in place to protect users. Here are some of its security features:
- User controls and authentication. Payments made via Alipay e-wallet are authenticated by having users enter a password or submit a biometric scan, such as a fingerprint or a face ID. This way, there's evidence that the account owner authorized the payment using a linked device.
- Advanced encryption. Transactions are encrypted using advanced SSL (Secure Socket Layer) technology.
- Time-limited QR codes. Alipay's payment QR codes are dynamic. Once they are generated, they only work in specific contexts and for a limited time only.
- Risk management system. Alipay's risk management system detects abnormal transactions in real time. If needed, the system can take additional safety measures, like requesting two-factor authentication to protect users.
Expand your business to China and beyond with Antom
As e-wallets continue to dominate China's payment landscape, Alipay's super app status stands out for its convenience, security, and expanded user base.
For e-commerce merchants looking to expand to China, leveraging Alipay not only grants access to the world's second-largest consumer market, but also streamlines payment processes crucial for business growth in Asia.
This is where Antom can help. With Antom, you can access an ecosystem of hundreds of payment methods — including Alipay.
With our deep market expertise, extensive partnerships network, and comprehensive payment technologies, we can help your business boost revenue, and support market entry to China and beyond. Contact us to learn more about Alipay and other payment methods around the world.
