American Express and Alipay have partnered to integrate global Amex cards to the Alipay digital wallet.
“Our collaboration with Alipay helps advance our commitment to providing an exceptional experience to American Express Card Members traveling to and within China. By integrating with Alipay’s digital wallet, we are empowering our card members with more ways to transact and connect with a vast network of merchants across China,” said Mohammed Badi, President of Global Network Services at American Express.
Go deeper with GlobalData
Cyril Han Xinyi, President of Ant Group, added: “Travel is an essential link for global connectivity and shared prosperity. We are thrilled to expand our collaboration with leading industry innovators like American Express, continuously developing a vibrant and mutually beneficial ecosystem. Through consistent breakthroughs in innovation, we aim to help small businesses achieve cross-border growth and enable people to deepen cultural understanding and mutual trust through safe and convenient travel experiences.”
Jonathan Vaughan Burleigh, Associate Analyst, Banking and Payments at GlobalData, publishers of EPI offers his view:
Amex, Alipay collaboration a significant move
“While it has been possible to link foreign credit cards and debit cards with Alipay’s digital wallet since 2023, American Express is the first foreign company that has been allowed to clear transactions in the local currency (Chinese Yuan). This collaboration between two of the world’s largest payment providers marks a significant step forward, providing enormous convenience for international tourists and businesspeople traveling to mainland China. With this integration, users can now make seamless payments in stores, on public transport, and across the country’s major super-apps.
“Conducting transactions in the local currency greatly reduces uncertainties associated with functionality, fees, and exchange rates that often come with mobile payments. Although larger stores, hotels, and attractions in major Chinese cities generally support foreign payments, smaller retailers, such as restaurants, bars, and even larger businesses in second-tier cities, are less likely to accept them, even through Alipay’s digital wallet. This local currency capability, therefore, bridges an important gap in the payment infrastructure.
“Additionally, varying fees and service charges across different networks have traditionally introduced uncertainty and friction in foreign transactions. The ability to pay directly in Chinese Yuan not only streamlines the payment process but also alleviates concerns over additional expenses or unfavorable exchange rate differences.
GlobalData In-Store Consumer Payments Analytics 2024
“According to GlobalData’s In-Store Consumer Payments Analytics 2024, Alipay is the number one in-store payment tool in China, with 41% of Chinese consumers citing it as their most-used payment method and 69% having used it at least once. This widespread adoption is driven by Alipay’s extensive coverage across retail, entertainment, tourism, and dining. Furthermore, GlobalData’s Mobile Wallet Analytics 2024 indicates that simplicity, speed, and the elimination of the need to carry physical wallets are the primary factors driving mobile payment usage. These benefits are especially significant for international travelers, who may face language barriers and the challenges of managing unfamiliar currencies.
“Access to online marketplaces allows customers to avoid long queues and compare prices, ensuring fair deals. Now, international American Express customers can enjoy a secure, simple, and seamless payment experience.
“American Express’s approach demonstrates a commitment to forging strategic partnerships that address gaps in the market. By enabling local currency settlement through this partnership, tangible benefits are provided to consumers, further driving the growth of mobile wallets among travelers in China. This development underscores the increasingly interconnected nature of international payment systems and marks a pivotal moment in the evolution of the global payments landscape.”
