Alipay: Mobile payments use by Chinese tourists soar overseas
With the increase in international flights, the demand for outbound tourism such as business travel, visiting relatives and friends, graduation travel, and summer study tours continues to be released, and outbound tourism is ushering in a good trend of orderly recovery. Outbound travel destinations welcomed a total of 40.37 million tourists in the first half of the year.
Due to the complete lift of policies after the Covid-19, Chinese choose to spend their precious holidays in overseas countries. Plus, they are more likely to use mobile payments regardless of the amount at tourist attractions, large shopping malls or even street food.
In this article, we will talk about the mobile payment market in China, the mobile payment use in overseas markets and the reflections for European and American merchants.
The mobile payment market in China in 2023
Until June of 2023, around 943 million people used mobile payments in China. Because the technique and market of mobile payment became kind of mature, there was a decrease for the growth rate after 2017, but the outbreak of Covid-19 brought another influx of new users.
With the growing popularity of e-commerce in China, Alipay has emerged as the primary payment method for online transactions. Consumers can conveniently use mobile Alipay to make payments for their online orders, simplifying the checkout process. Beyond e-commerce, Alipay's technological advancements extend into various aspects of everyday life. Users can now pay their phone bills, water bills, gas bills, and more through Alipay, making it an integral part of their daily routines.
Additionally, Alipay's continuous innovation has led to the emergence of palm payment technology, which further enhances the convenience and security of everyday transactions. This means that Alipay is evolving to offer a comprehensive suite of solutions, making it an essential part of modern life in China, where both online and offline payments are seamlessly integrated into the palm of your hand.
Chinese mobile payment use in overseas tourism
The ‘Outbound Chinese Tourism and Consumption Trend Survey’ showed that over 90% of Chinese tourists would use mobile payment overseas if given the option. During their most recent trip overseas, 65% of Chinese tourists have used mobile payments overseas, and younger generations are leading this trend. A few years have passed, especially after the Covid-19 period when mobile payment developed rapidly. In this year, everyone wants to choose to travel abroad, this number will only increase rather than decrease.
Despite concerns about high travel costs and inflated airfares, 74% of Chinese survey respondents intend to visit a European destination between September and December 2023.
What does this mean to overseas merchants?
China is now the most cashless of the world’s major economies – and this trend is set to continue. In the past 20 years, the number of Chinese outbound tourists has increased year by year. Every brand or retailer in Europe or America has an opportunity to at least tap into the lucrative and growing Chinese travel market which means that not accepting Alipay is missing out on a great opportunity to reach a billion consumers.
If you are an overseas merchant, it is a wise choice to consider accepting Alipay payments. Alipay is one of the most popular mobile payment platforms in China, so accepting it could attract more Chinese tourists and provide a more convenient payment method. You can also partner with Alipay to offer special promotions and discounts to attract Chinese tourists to purchase your products or use your services.
Therefore, for all merchants in Europe or America, Silkpay can help you to accept Alipay in your payment methods in order to ensure that your website or store can accept payments from Chinese visitors no matter where it is located. Merchants need to let outbound visitors know they can come to your online or physical store and pay by mobile devices conveniently.
How to reach Chinese consumers as a European or American retailer?
Accepting their payment methods in-store:
POS terminal
Merchants can integrate Alipay as a payment option in POS terminals. This enables Chinese tourists to use their preferred payment method.
Silkpay offers 3 kinds of POS terminals for its merchants: Alipay and WeChat Pay POS terminal, UnionPay cards POS and Visa/Mastercard POS. Our merchants can choose from depending on the payment method they would like to integrate.
Cashier software integration
Merchants also need to integrate Alipay as a payment option into their checkout software. Indicating that Alipay can be used in stores will greatly increase the appeal to Chinese tourists.
Silkpay APP (mobile POS)
Merchants can consider Silkpay for creating an account to accept Alipay in their business and provide the mobile POS. Either by scanning clients’ payment code or allowing them to scan merchants’ payment code, to improve the shopping experience.
Selling to Chinese consumers online via cross-border e-commerce
API integration
As an overseas merchant and you want to sell products or services online to Chinese consumers, API integration with Alipay is an effective way. Connect your online sales platform with Alipay’s payment system. This way, Chinese consumers can use Alipay to pay on your website or APP.
PaybyLink
PaybyLink is the most convenient option for accepting payments from your Chinese customers. It allows you to generate a secure payment link and then send it to the client, who can use it to pay via their preferred payment method.
Alipay storefront
You can showcase your products in the Alipay storefront and attract Chinese consumers. Alipay storefront provides an easy way for Chinese consumers to discover and purchase your products.
Silkpay can help merchants in creating an Alipay storefront as well as coupons to increase and optimize their stores’ popularity by publishing promotional coupons in their Alipay account. Once downloaded, these promotional coupons will be saved in the Alipay user's e-wallet which can be used at checkout.
WeChat mini-programs
WeChat is one of the most popular social media platforms in China. You may consider creating a WeChat mini program to provide Chinese consumers with a shopping experience on the WeChat platform. In WeChat mini programs, you can integrate Alipay payment as a payment option so that Chinese consumers can complete their shopping conveniently.
Discover more on our Youtube channel.
Conclusion
After the Covid-19, Chinese consumers began to choose to travel overseas in large numbers. For Chinese clients, familiar and convenient payment methods like Alipay are a major attraction for their consumption. Merchants in Europe and the USA need to seize the opportunity of the dramatic increase in Chinese tourists by integrating Alipay and WeChat Pay into their payment options. Through payment method personalization, merchants can reach more Chinese tourists and consumers. Thus, get more revenues from cross-border business.
Sources
https://www.mpaypass.com.cn/news/202310/07100430.html
https://www.statista.com/statistics/278487/number-of-mobile-payment-users-in-china/
https://www.ctaweb.org.cn/cta/gzdt/202308/d08d3bea0fbc4af99ac9873a5560a398.shtml
https://www.alizila.com/alipay-china-mobile-payments-us-europe/
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About the author: Silkpay
Based in Paris, Silkpay provides omnichannel and secure payment solutions to help physical stores and e-commerce in Europe accept more than 30 of the world's most popular payment methods: Visa, Mastercard, CB, UnionPay, Alipay+, WeChat Pay as well as Asia-Pacific’s major e-wallets.
Silkpay is a winner of the LVMH Innovation Award. The company was also selected as a finalist for the "Money 20/20" Best Startup and in the "MPE Berlin” Startup Awards. Silkpay also won the "Best Fintech" awards from Capgemini and BPCE.
Silkpay helps merchants deliver the smoothest payment experience to their customers. We are a talented and international team driven by a single goal: to improve the customer experience and make payments simple and secure.