Alipay, the 1.3 billion users’ e-wallet

+ What is Alipay?

Alipay is a mobile payment platform launched in China in 2004 by Chinese e-commerce giant Alibaba. It is a downloadable e-wallet on mobile devices. Alibaba’s e-commerce platform Taobao needed an escrow service acting between the buyer and the seller, withholding the payment until the reception of the purchased goods by the buyer.

Today, Alipay has become a digital payment leader and constructed a financial ecosystem. It is more than a secured and convenient payment method. With this giant e-wallet, merchants can launch marketing campaigns, give away coupons, get more detailed information on clients’ preferences…

It is reported that all Chinese tourists have an Alipay App in their mobile phone. On average, over 40% of transactions are via this popular e-wallet. It is becoming one of the most accepted payment methods abroad among Chinese people.

In 2022, Alipay reached the 1.3 billion users mark, including more than 320 million daily users in China and outside of China.

+ How does Alipay work in-store?

Here is how Alipay works in-store:

1. The customer can either use the Alipay app to scan the merchant's QR code or show their Alipay QR code to the merchant to scan.
2. The customer then verifies the payment details on their phone and confirms their identity using a PIN or biometric authentication.
3. After the payment is completed, the merchant can check the transaction details in their Silkpay App or Backoffice.

+ How does Alipay work online?

Here is how Alipay works on mobile:

1. The customer selects Alipay as the payment method during checkout.
2. The customer is redirected to the Alipay platform, where they authorize and make the payment.
3. After the payment is completed, the merchant can check the transaction details in their Silkpay App or Backoffice.

Here is how Alipay works on e-commerce websites on the computer:

1. The customer selects Alipay as the payment method at checkout.
2. A web page displays the Alipay QR code
3. The customer scans the QR code to authorize and make the payment.
4. After the payment is completed, the merchant can check the transaction details in their Silkpay App or Backoffice.

+ Is Alipay secure?

Alipay is one of the most secure payment methods in the world.

It employs multiple protection mechanisms to ensure the safety of users' information and funds. Alipay encrypts all information transmitted through the app.

Additionally, users must enter a password or scan their face when making payments to prevent unauthorized transactions. To further enhance security, Alipay is equipped with a risk monitoring system that checks account activity every 30 seconds to promptly detect any anomalies.

+ Why is Alipay convenient for the user?

Alipay is Chinese consumers’ preferred payment method. It comes as their first choice in purchases abroad for the following reasons:

• Attractive exchange rate: Depending on the different levels of the payment account, users can benefit from a preferential and more attractive exchange rate than other payment methods.

• Pay with RMB for overseas purchases without using foreign currency quota: In China, the conversion of RMB into foreign currency is limited and controlled. The foreign exchange purchase quota for Chinese consumers is 1 million RMB per person per year. These quota regulations are not applicable for Alipay.

• Guarantee and protection against fraud: As China’s mobile payment leader, Alipay offers a secure payment system and guarantees smooth transactions to its users. In case of a dispute, the platform assists its users in contacting the seller and resolving the issue.

Moreover, during their travels abroad, with language barriers, Alipay is considered as a source of security and trust for Chinese tourists.

+ What are Alipay advantages for sellers?

• The giant e-wallet has more than 1,3 billion active users. In order to access one of the largest client bases in the world, merchants should use Alipay in their physical and online stores.

• By opening an Alipay account, merchants can automatically benefit from its geolocation feature that allows Chinese customers to find your store. Your clients can then access your storefront, check your products and your promotions. Thus, this will increase your store’s visibility and your sales.

• Furthermore, merchants can also reduce the checkout time, thanks to a simple QR code scan.

• In addition, a Chinese tourist spends an average of 3400 euros in France. For merchants, Alipay represents not only an opportunity to attract these consumers, but also to expand their business internationally.

+ Who can accept Alipay?

Any company, association or entrepreneur can accept this giant e-wallet in-store or online to make the purchase process easier for their Chinese customers in every channel.

However, high risk companies are not accepted for account opening.

For more information on whether your business is qualified or not, please contact our team.

+ In which countries can merchants accept Alipay?

Alipay can be accepted in 110 countries around the world (Europe, US, Asia, Australia etc.). If you want to know if your business can open an account, please contact our team.

+ Does Silkpay have a PrestaShop plugin for Alipay?

Yes, Silkpay has launched a free PrestaShop plugin. It allows merchants to accept Alipay as well as WeChat Pay, China UnionPay, Visa and Mastercard payments in e-commerce and decrease cart abandonment.

+ How to open an Alipay account and how long it takes?

You can automatically create a Silkpay business account through our online process to start accepting payments. After checking the documents, it will take 5 business days to open an Alipay account . In case of emergency, it is possible to complete the opening in 48 hours.

+ What is Alipay pricing?

Merchants pay a commission rate per transaction on successful transactions only. For more information on our services’ pricing, contact our team via this form.

+ What is the transaction limit for Alipay?

If the payer is in China, the static QR code can only be used for payments up to 500 Euros. For larger transactions (up to 25,000 Euros per transaction), the Alipay online channel can be used, including options such as Paybylink, API or plugin.

If the payer is outside of China, the static QR code can be used to make large payments (up to 25,000 Euros per transaction). The Alipay online channel also allows large transaction amounts.

+ Does the seller need a Chinese bank account to accept Alipay?

No. No Chinese bank account is required. All payments via Alipay will be cashed into your European company's bank account.

+ If the client pays with RMB, in which currency does the seller receive the money?

The merchant will receive the transction’s amount in Euros. The change or cost associated with the exchange rate has no impact on the seller.