China’s Ant Group to Open New Markets Across the World With Alipay+ Cross-Border Payments

By Trisha Andrada

May 06 2024, 03:40 AM EDT

Alipay+ — Alipay logo is pictures during the Mobile World Congress (MWC), the telecom industry's biggest annual gathering, in Barcelona on February 26, 2024. PAU BARRENA/AFP via Getty Images

Ant Group, a Chinese financial technology company, aims to increase its worldwide prominence by connecting mobile payment applications all around the globe with its digital product, Alipay+.

Douglas Feagin, senior vice president of Ant Group, told CNBC that people prefer to use their home e-wallets instead of using unfamiliar apps when going overseas.

Ant Group to Expand Internationally With Alipay+

In 2020, Alipay+ was launched, enabling foreigners to use their home apps to pay in China and other countries by scanning QR codes on the China-focused payment platform Alipay.

Ant Group has put money into country-specific e-wallets, but the CEOs wanted to expand internationally, according to Feagin, who is now president of the group's global arm, Ant International.

Feagin hopes to imitate its comparatively extensive coverage in Asia in other regions, such as the Middle East, Latin America, and Europe, due to the huge opportunity for expansion that the company sees.

In 57 countries and territories, 88 million merchants are now connected to 1.5 billion customer accounts via Alipay+, which spans over 25 e-wallets and banking apps.

Eurepean, Asian Travelers Spend More on Alipay to Visit China

According to Ant, there was a significant increase in the number of visitors from 15 countries across Europe and Southeast Asia who used Alipay during the holiday. The usage of Alipay was four times higher this year compared to previous years.

To enhance inbound tourism, Beijing has implemented a range of initiatives. These include granting visa-free entry for 15 days to visitors from countries such as France, Germany, Italy, the Netherlands, Singapore, and Malaysia for purposes such as business, tourism, family visits, and transit.

SCMP reported that the Chinese government has recently extended the visa-free transit policy in China. This policy now allows travelers from 54 countries to enjoy a stay of up to 144 hours when passing through the country, provided they have a confirmed onward ticket to their next destination.

There has been a noticeable improvement in inbound tourism as a result of the efforts. In January and February, there was a significant increase in the number of trips made to or from China by foreign passport holders, according to an official from the Ministry of Culture and Tourism. The figure more than doubled compared to the November-December period.

However, the current figures only represent 41.5 per cent of the levels seen before the pandemic. Inbound tourism continues to encounter obstacles in the aftermath of the pandemic, particularly in the face of a more difficult international landscape.