ALIPAY PROVIDES NEW INSIGHTS INTO ITS MOBILE PAYMENT ADOPTION: Chinese mobile wallet giant Alipay has indicated that its overseas transaction volume grew in several markets this summer, according to a report on China Daily. Although actual figures weren’t provided, the report highlights several countries that contributed to Alipay’s transaction volume growth.
Chinese tourism was a key driver of the increase in Alipay’s global transaction volume.
- Alipay saw a significant rise in transaction volume in several countries. Mobile payment volume more than doubled in Russia, and increased significantly in Australia, Canada, and Malaysia as well. The report highlights that most European countries saw weaker volume, and, in response, Alipay has increased the number of airports that support Alipay tax refunds to 80 as a way of encouraging use in those regions.
- Support from other countries further propelled this rise in global transactions. Alipay also noted that it saw “unprecedented enthusiasm” from other countries for mobile payments. It’s likely that Alipay’s rapid global expansion efforts, which have been focused on increasing its acceptance network so that more Chinese tourists can pay with the wallet while traveling, contributed to the overall boost in transactions as well, given that these consumers largely prefer to use mobile wallets while traveling — 65% of all Chinese tourists used mobile wallets in 2017, according to Nielsen.
As the Chinese mobile wallet market in China grows, Alipay should focus on growth opportunities abroad. The Chinese mobile wallet market is growing, hitting $12.8 trillion in mobile payment transactions last year. At the same time, Alipay has been ramping up its overseas expansion efforts. The firm has expanded to numerous tourist destinations through the US, including merchants and vendors at PIER 39 in San Francisco and the US’ largest Asian food chain, 99 Ranch Market, as well as tourist attractions in the UK and over 1,300 stores in the Dubai Mall. Continuing to build on these global expansion efforts will be crucial for Chinese mobile wallet providers looking to add revenue and market share as mobile wallet usage and tourism grow. For Alipay, which runs a near-duopoly in China with its main rival WeChat Pay, overseas markets are a key growth area for boosting adoption and maintaining the engagement of its users while they travel. And as Alipay continues to face stiff competition from WeChat Pay, which is encroaching on its leading position in the market, expanding its acceptance network overseas could keep its customers loyal and open new streams of revenue.