Cross-Border Travel Spending on the Rise with Alipay and WeChat Pay
Inbound spending through Alipay and WeChat Pay experiences significant growth during China's Labour Day holiday.
China's major mobile payment systems, Alipay and WeChat Pay, have shown a substantial increase in inbound travel spending during the country's Labour Day holiday.
Multiple Wallets, Global Reach
Thanks to Alipay+, a payment network enabling small and medium-sized businesses to accept electronic payments from international travelers, it's easier than ever to use various mobile wallets across Asia. Ant Group's own AlipayHK tops the list for total spending, followed by Malaysia's Touch 'n Go e-Wallet and Kazakhstan's Kaspi.kz, according to Alipay data.
International Transactions Boost
WeChat Pay transactions made by Chinese tourists traveling abroad saw a significant 37% year-on-year increase, as per Tencent.
Fostering Cross-Border Travel
These figures demonstrate Chinese tech firms' efforts to support cross-border travel and strengthen inbound tourism amid economic challenges.
Momentum for Holiday Spending
During holidays, travel and shopping activities spike, leading to higher usage of Alipay and WeChat Pay. To streamline cross-border transactions, both platforms have recently entered strategic partnerships, such as Alipay collaborating with American Express.
The Power of Partnerships
Ant Group’s partnership with American Express promises a smoother payment experience for international visitors by enabling them to link their cards directly, without the need for local bank accounts. This boosts the travel experience by offering more accessible payment options.
Symbiotic Relationships
Alibaba’s platforms like Fliggy seamlessly integrate with Alipay, making booking travel services a breeze for users. Alibaba often promotes travel deals and activities during holidays, stimulating Alipay usage.
The Road Ahead
As the digital economy in China evolves, companies like Ant Group, Alibaba Group Holding, and Tencent Holdings (WeChat Pay) are expected to refine their cross-border capabilities. This may entail deeper integrations with international payment systems and expanding services to cater to the rising tide of tourists and business travelers utilizing these platforms during holidays.
Cross-border travel spending is set to rise with the rebound of inbound tourism to China, expected to reach 82 million trips in 2023. Regulatory support, such as the easing of visa-free transit policies, contributes to inbound tourism growth and stimulates cross-border spending through digital wallets.
- Ant Group's partnership with American Express, through Alipay, aims to offer a smoother payment experience for international visitors by linking their cards directly without the need for local bank accounts.
- Alibaba's platforms, such as Fliggy, seamlessly integrate with Alipay, making booking travel services more convenient for users, particularly during holidays when travel and shopping activities increase.
- With the rebound of inbound tourism to China and the easing of visa-free transit policies, cross-border travel spending is expected to grow significantly, potentially reaching 82 million trips in 2023.
- As the digital economy in China continues to evolve, companies like Ant Group, Alibaba Group Holding, and Tencent Holdings (WeChat Pay) are anticipated to improve their cross-border capabilities, including deeper integrations with international payment systems and expanding services to cater to the increasing number of tourists and business travelers utilizing these platforms during holidays.
