JP Morgan Chase – largest merchant acquirer in US – and Alipay have partnered, merchants can now accept Alipay
Expansion into the US part of Alipay’s strategic plan to follow Chinese tourists overseas
1.2 million Chinese visitors to Australia annually, does that present an opportunity to expand Alipay acceptance here?
Point of View
JP Morgan Chase looks set to roll out Alipay acceptance capability to its merchant clients in North America. The partnership will see Chinese travellers able to use their Alipay mobile wallets at merchants across the US.
Mobile payments using QR codes are extremely popular in China, having seen a meteoric rise since 2013, largely attributable to Alipay and WeChat Pay. Currently Alipay has more than 500 million users in China. By expanding its acceptance to 70 countries and 14 major currencies, Alipay is able to provide its customers travelling abroad with the payment method they are familiar with.
Along with payments, Chinese travellers can also use Alipay’s Discover service. The geo-location service helps users locate nearby merchants, including those that accept Alipay, and alerts them of merchants’ special deals.
Given that JP Morgan Chase is the largest merchant acquirer in the US, the partnership provides considerable scope for Alipay acceptance to grow substantially in the US.
Alipay already has a presence in Australia. In October 2016, Alipay and the Commonwealth Bank signed an MoU to enable the bank’s merchant clients to offer Alipay on its Albert terminals. Payments technology provider, Quest, announced a partnership with Alipay in December 2016, to provide software that enables a merchant’s terminal to process Alipay transactions. Royal Pay offers Alipay acceptance services directly to physical and online merchants. And Paybang, an Australian company in a joint venture with Alipay, provides Alipay acceptance services to merchants.
The largest merchant acquiring bank in the US is choosing to adopt Alipay, notwithstanding the relatively low number of Chinese vistors to the US compared with Australia. 1.2 million people from China came here in 2016, compared to around 3 million who visited the US. This suggests there could be an opportunity to expand acceptance of Alipay in Australia.