PayPay and Alipay+ announced an extended partnership at the Singapore FinTech Festival 2024, to increasing merchant coverage across Japan.
PayPay, Japan’s leading QR payment operator, and AliPay+, Ant International’s mobile payment method that helps merchants reach shoppers in Asia, will now connect over three million local merchants to the global payment ecosystem. The extended partnership is able to offer international visitors an easy and secure way to pay through trusted domestic e-wallets, rather than needing to use unfamiliar payment methods. The goal is to ensure transactions are more convenient and smoother for travellers to use.
Users of Alipay+ payment partner apps will be able to make payments at various merchant presented mode (MPM) stores throughout Japan by scanning PayPay QR codes. And with busy travel periods around Christmas and the Western and Chinese New Years imminent, users can also access discounts and exclusive deals.
For instance, users of certain payment platforms, including AliPay, AlipayHK, TrueMoney, Touch ‘n Go eWallet, Toss Pay, TrueMoney, and Kakao, will benefit from a 10% discount on purchases up to JPY 1,000 or CNY 50. Tinaba users will also be eligible for a 10% cashback on purchases
Tinaba users will benefit from a 10% cashback on purchases, with a maximum limit of EUR 20. Each eligible user can redeem this discount or cashback only once throughout the campaign period, which runs from December 20, 2024 to January 10, 2025.
With Japan being the number one tourist destination in the Asia-Pacific area (APAC), and the number of international visitors continuing to rise each year, local businesses will be able to benefit from the needs of global tourists.
Corporate Officer and Division Head of the Finance Business Strategy Division at PayPay Masayoshi Yanase said, “PayPay is committed to building a connected, seamless payment ecosystem that empowers local businesses to connect with international travellers.”
Yanase said how “convenient and secure payment solutions” can improve the travel experiences of international tourists, and PayPay’s partnership with AliPay+ will make payments easier and more accessible for global visitors.
“Together with Alipay+, we aim to contribute to economic growth across Japan by supporting digital transactions for businesses of all sizes, from bustling city centres to emerging regional destinations.”
Douglas Feagin, President of Ant International, reiterated how partnering with PayPay can power inclusive economic growth, “by connecting the vibrant supply chain of Japan’s nationwide merchants to the growing demand of international consumers for hyper-local experiences via the global payment ecosystem with Alipay+.”
Alipay+ promises to promote a more seamless cross-border payment experience for tourists exploring lesser-known areas of Japan. By increasing its merchant coverage, AliPay+ can deliver more to SMEs.
The number of travellers using home payment apps to pay for purchases via AliPay+ in Japan has almost doubled in 2024 compared to 2023. This is largely down to all-in-one payments changing traveller’s spending habits. For instance, they are spending more money on activities and experiences that are unique to local cultures, like tours and local cuisine, rather than solely buying retail goods or souvenirs.
During the first ten months of 2024, the number of transactions made via Alipay+ partner payment apps was almost three times higher than the previous year, with retail, entertainment and food & beverage being the top categories for transactions.
Currently, AliPay+ has a partner payment app network in Japan that includes 16 e-wallets and bank apps. They include AliPay on China’s mainland, AliPay HK in Hong Kong SAR China, MPay in Macao SAR China, Kakao Pay in South Korea, Malaysia’s Touch n’ Go e-wallet, GCash in the Philippines, Thailand’s HelloMoney and True Money, Mongolia’s Hipya, Italy’s Tinaba, and Singapore’s OCBC Digital.
The expansion of the partnership between PayPay and AliPay+ simplifies payment methods for international tourists, while aiding local businesses. Regional economies stand to benefit as the tourism market grows and the simplicity of QR code payments promises to change the future of travel, opening up payment borders for the international tourist.