Alipay in Europe
Have you ever wondered why more and more European businesses are turning to Alipay? With the rapid popularity of mobile payments, Alipay is not only widely used in China, but it's also making a new trend in Europe both among tourists and locals.
This article will explore how Alipay has entered the European market and introduce how Silkpay helps merchants quickly accept Alipay, seizing this global business opportunity.
What is Alipay?
Alipay is China's leading mobile payment platform, launched by Ant Financial, a subsidiary of Alibaba Group. Since its establishment in 2004, Alipay has become the most commonly used payment method in China along with its competitor WeChat Pay.
Alipay, with over 1 billion users. It is not just a payment tool, but it also integrates financial management, shopping, transportation, and various other services, becoming an indispensable part of daily life for every Chinese consumer.
How does Alipay work?
Alipay is a popular digital payment platform in China that enables users to make secure transactions through their smartphones. It operates as a mobile wallet, allowing users to store funds, pay bills, transfer money, and shop online or in physical stores.
To use Alipay, users link their bank accounts or credit cards to the app. Once set up, the payment process varies slightly between online and in-store transactions:
Online payments:
When shopping online, users select Alipay as their payment method at checkout. They then scan the QR code displayed on the merchant's website or app using the Alipay app. After scanning, users confirm the payment amount and authorize the transaction, often using a password or biometric verification.
In-store payments:
For in-person purchases, there are two main methods.
The merchant can display a printed QR code at the checkout counter or generate a code in the POS machine or Silkpay app for the user to scan. Or, the user can present their own QR code for the merchant to scan.
Once completed, the customer and the merchant receive the confirmation.
With Alipay, users can instantly make payments online and in-store, enjoying a fast and convenient payment experience.
Alipay’s expansion in Europe
Currently, Alipay’s expansion in Europe is progressing rapidly, with a focus on attracting a large number of Chinese tourists and promoting cross-border e-commerce.
By collaborating with multiple European payment providers like Silkpay, Alipay has quickly entered many countries, including Italy, Spain, France, Portugal, Germany and the Netherlands.
Italy
Alipay's expansion into Italy aligns with the country’s economic goals, especially in the tourism sector.
In 2017, over 120,000 merchants were able to take Alipay payments in their store through this expansion.
Chinese tourists' spending on luxury goods and fashion in Italy is particularly significant. Alipay integration provides Chinese tourists with a cashless payment experience, widely accepted in hotels, restaurants, luxury stores, and even museums in Rome, Florence, and Milan.
Besides tourism, Alipay helps Italian companies expand business opportunities in the Chinese market through cross-border e-commerce platforms.
Spain
In Spain, Alipay's focus is on the retail and tourism industries, similar to its approach in Italy.
Alipay’s expansion in this market allowed more than 80 independent stores in Barcelona to accept Alipay in-store, showing that the Spanish retail sector is gradually adapting to Chinese tourists' payment habits.
Initially, Alipay was mainly used in large department stores, but it gradually expanded to smaller stores and restaurants, enhancing payment convenience.
Its popularity has not only provided convenience for Chinese tourists but also benefited industries like luxury goods, hotels, and restaurants, profiting from high-spending tourists.
France
The integration of Alipay in France allows French businesses to accept the most commonly used mobile payment method by Chinese tourists.
Silkpay has already equipped a thousand of restaurants, shops, retail stores, luxury stores, grocery stores, hotels, automotive brands, airports and many others in France. Especially in popular destinations for Chinese tourists, such as luxury brands and high-end tourism establishments.
The reason why more European countries accept Alipay
The rise of Chinese tourism
In 2023, China topped the global list for outbound tourism spending, with its travelers investing $196.5 billion on international trips. The amount spent was very close to the levels seen in 2019, highlighting a remarkable recovery from the pandemic in outbound tourism spending.
In 2023, approximately 87 million travelers from mainland China went abroad. Around 61 percent of them visited countries in Asia, whereas 23 percent chose to go to Europe.
Countries like France, Italy and Spain, with their rich cultural heritage and shopping experiences, have become popular destinations for Chinese tourists.
For this clientele, Alipay is a familiar payment method, significantly reducing the barriers to shopping abroad and making the customer spend more in your store without worrying about exchange fees or any problems that come with payments.
This phenomenon has prompted more stores in Europe to take Alipay to attract more Chinese clientele.
A higher traffic and a higher revenue
European merchants have understood that taking Alipay payments means more sales, a higher spending tendency and a higher revenue. Alipay has been rapidly adopted around Europe in different stores.
In addition, Alipay's digital marketing tools help merchants create personalized promotions and discounts for Chinese tourists to get closer to their clientele.
Not only that, Alipay allows its users to find nearby shops accepting Alipay. Alipay users are more likely to visit your store if you are in this list. The Chinese clientele prefers convenience. Customers prefer to pay with their favorite payment method and Alipay has made it easier for them to find the stores that interest them within the app. Thus, it has become a must for stores in Europe to be listed in Alipay.
Data-driven personalized services
Alipay's success is also attributed to its powerful data analytics capabilities it offers to merchants.
By analyzing users' consuming and spending habits, Alipay can offer personalized transaction recommendations. It helps merchants with targeted marketing hugely increase sales opportunities.
How Silkpay helps merchants take Alipay payments
As Alipay becomes a more popular and accessible payment method across Europe, an increasing number of merchants are choosing to accept it to boost their revenue.
Silkpay provides services to merchants who seek to integrate Alipay into their payment options.
Merchants can choose from the following three ways to accept Alipay payments: A wireless POS terminal, Silkpay’s mobile app, PaybyLink and cash register software.
How is Alipay changing consumer habits
The transition to a cashless society
Alipay has greatly accelerated the shift from cash payments to cashless payments in China, changing people's daily consumption habits.
Today, whether in big cities or small towns in China, cash payments are becoming increasingly rare. Mobile payment methods are now widely used in all kinds of places, from street vendors to high-end shopping centers, becoming the main payment options.
This widespread adoption of cashless payments has not only improved transaction efficiency but has also changed how businesses operate, promoted the development of the digital economy, and enhanced the overall convenience of society.
Inclusive finance
The popularity of Alipay has also promoted inclusive finance. By using Alipay, people can easily manage their finances, apply for loans, and buy insurance, offering convenient financial solutions, especially for people living in remote areas who lack access to traditional financial services.
Social connectivity
Alipay also strengthens social connections and cohesion through features like social functions and charitable donations. For example, Alipay's Ant Forest project allows users to reduce their carbon footprint by using digital payments and participate in tree planting, thus raising environmental awareness.
Conclusion
Alipay has not only profoundly changed payment habits in China, driving the formation of a cashless society. It has also successfully expanded into international markets through partnerships with payment gateways such as Silkpay to allow merchants around the world to collect Alipay payments.
As more and more Chinese tourists choose to travel to Europe or settle there for years, Alipay makes them feel home and welcome. Also, Silkpay helps merchants smoothly integrate Alipay, enhancing the customer experience.
In the future, Alipay’s global influence is expected to continue to grow, bringing new opportunities and business prospects to merchants.
About the author: Silkpay
Based in Paris, Silkpay provides omnichannel and secure payment solutions to help physical stores and e-commerce in Europe and the Americas 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.
Sources
https://english.news.cn/20240509/375408945b724d1bb81887405281c7bd/c.html
https://webcertain.com/site/knowhowamp/alipay-is-now-available-in-italy/kb3649