ALIPAY REVIEW: THE APP THAT CONQUERS BILLIONS

22/11/2019 165
E-Commerce

Alipay changes billions of customers’ lifestyles in China Main Land through its simple but smart and critical functions. Moreover, the advancement of Domestic & Global Online Payment has made it possible for Chinese to open the gate outside China and vice versa. Let’s take a tour inside the Alipay review information and see what the app has to offer, that enables it to gain such popularity.

According to the Central Bank of China, as of the end of April 2017, China had counted up to 1.35 billion mobile phone users and more than 1 billion of them use broadband internet services. The rate of using the internet via mobile phone, e-commerce, and technology 4.0 applications is promoting a form of payment by technology to develop rapidly and become a driving force of economic growth in the country.

If cash payments were common in Chinese society in the past, in recent years cash payments in China were considered odd, as all societies were moving towards e-money. However, when the wave of electronic payments flooded into China at a breakneck pace, nearly all payment transactions in the country are via technology. Large stores and shopping malls all use these apps, even taxi services, street musicians, etc. use QR codes.

There are many online payment tools in China. However, at present, Alibaba’s Alipay and Tencent’s Wechat are the two most popular applications used in the country and it is becoming an alternative payment channel for cash. Among them, Alipay is the most popular online payment tool.

1. What is Alipay?

a. Introduction

Alipay is an electronic wallet in China owned and developed by Alibaba Group. In the simplest terms, Alipay is an intermediary for payment, in which it is like a bank account or Paypal. Alipay was born in 2004, in the context of Alibaba just starting to enter the e-commerce market, needing a tool to ensure online transactions will take place safely and create confidence for consumers in the form of this completely new deal.

Alipay Review - What is Alipay?
What is Alipay?

Alipay is a leading Chinese mobile payment platform that connects to the bank account used to manipulate financial transactions and is also free for credit cards, transfers, telephone, electricity and water, users can also use Alipay to call cheap cars, buy goods. Alipay also has many public accounts (Alipay portal service account) that provide users with dedicated services (or online purchases) quickly, safely, and conveniently. Alipay is compatible with mobile operating systems such as iOS, Android, Windows Phone.

By the end of January 2019, the number of Alipay users reached 1 billion. This is the world’s number one mobile payment service and the second-largest global payment service. According to the fourth quarter of 2017, Alipay has 54.26% of third-party market share in mainland China and continues to grow.

The major payment platforms in China have developed various stimulus programs for users, discounts or gifts when shopping, creative games based on popular cultural events. Publicly available platform tools for developers for seamless integration. For example, creating software development tools, such as application program interfaces (APIs), allows third-party vendors and small businesses to create and add their own features. for ecosystems to suit the needs and preferences of users, a way of developing natural ecosystems.

b. How Alipay dominates the Chinese Online payment market and opens opportunities for foreign companies

Purchasing via smartphones and QR codes is very popular in China, of which the two most used services are Alibaba’s Alipay and Tencent’s WeChat Pay. A study showed that the country’s huge payment market worth 43.8 trillion USD is currently dominated by two “giants”: Alipay (53.7%) and WeChat Pay (38.8%).

With the explosion of payment technology and the strong entry of e-commerce giants such as Alibaba, Tencent, etc., to date, China is the world’s largest market for digital payments, accounting for nearly 50% of global market share. Mobile payment in China has grown into a $ 16 trillion market, dominated by China’s two biggest tech giants, Tencent and Alibaba. In terms of market share, Alipay accounts for 54% compared to 40% of WeChat Pay. By dominating the market with the largest market share, Alibaba’s Alipay and Tencent’s WeChat Pay are far ahead of international rivals like Samsung Pay or Apple Pay. However, the battle for dominance in the Mobile Payment Industry is just beginning to heat up. Recently, CLSA Research Company predicted that the scale of electronic payment in China will quadruple to 300 trillion yuan in 2021.

Using Alipay e-wallet, users can experience the following benefits:

  • When shopping online, the money transferred to the seller will be kept by review Alipay, after the buyer receives the new money to the seller, this is considered an absolute security guarantee for both buyers and sellers.
  • No need to go to the bank to transfer money, you can pay directly and simply.
  • After successful payment, the seller will immediately deliver goods, fast speed, high performance.
  • Free all transaction fees, economical savings.
Alipay review - Alipay is tremendously popular in China
Alipay is tremendously popular in China

In addition, Alipay’s parent company offers a number of other financial services such as lending, investment, and insurance. Xiang Hu Bao (roughly translated as mutual protection) has attracted 50 million users since its launch last October. This product acts as a collective in which a member contributes an equal amount to payments of up to 300,000 yuan ($ 45,000) when a participant is seriously ill.

Outside of China, Ant Financial is building a QR code payment infrastructure in Europe and some other countries. Ant Financial and review Alipay’s ambition in the future is to create a new playing field for non-Chinese customers around the world.

According to the world’s leading technology experts, more and more Chinese use mobile payment, meaning companies are sitting on a treasure trove of consumer data. Consumer data from payments is used to build a detailed profile of each user, which can then generate profits from direct marketing purposes right in the app that even Facebook and Google also want to own. This is a tool to help Chinese companies make money from advertising the way Facebook and Google have been doing.

 

2. Review Alipay – Super App

a. Alipay review – Basic Function

To begin with, Alipay may be a simple-to-use app that is compatible with most devices. Fortunately for international users, it cooperates with the foremost widespread money systems of the globe. Therefore, any users of Visa, MasterCard, yank categorical or numerous online-wallets will tie their accounts to the given app. Putting in it and selecting a sound payment channel needs a registration.

The authorization method begins with inserting a telephone number. It’s used for receiving a verification code required to proceed with coming into personal knowledge. The specified data is common for many payment systems. Alipay asks the user to fill in their name, cognomen and MasterCard number(s). Data security is protected by a countersign designated by the user.

Alipay review - “Scan” and “Pay”
“Scan” and “Pay”

The app interface is kind of intuitive and might be simply employed by not tech-savvy shoppers. Most functions work via QR-codes scanning. the 2 hot buttons square measure “Scan” and “Pay”.

While paying in-store or at some physical facility, the workers can provide you with scanning their distinctive QR-code. Then they will enter a necessary total and receive your payment. Further countersign confirmation is applicable in such cases to avoid unauthorized transactions.

Many supermarkets or restaurants have their own scanners placed at the paytable. Alipay users will hit a “Pay” button and generate a payment barcode. No countersign is needed when scanning to permit such style of payments.

Credit cards are never popular in China due to the majority of unattractive options, the cultural attitude about debt, and more recently, the lack of after-tax income. And Chinese banks are quite difficult to access. When AliPay launched in 2004 as an escrow service between buyers and sellers on Taobao, Alibaba’s popular consumer e-commerce platform provided a much-needed layer of security and trust. In recent years, this service has grown at a rapid pace. And compared to signing up for credit cards or using state-owned banks, review AliPay is much more user-friendly.

According to international analysts, the transition of payment methods in China is also a payment trend in the future. This success shows that payments through applications are booming in emerging markets, where small and medium-sized businesses are the majority without much capital to invest in expensive payment systems. Besides, digital payments are part of the “green finance” project underway in China. In addition, the low rate of credit card usage (only about 16% in 2014) while the widely used smart mobile devices made it easy for China to make this transition.

For the economy, according to World Bank statistics, “cashless” electronic payment technology is more effective when cutting costs up to 75% of the Chinese Government and businesses. Payment with technology also helps improve the competitiveness of the economy and businesses do not have to invest too much in their activities. The benefit of paying with technology brings a lot of rich experiences, cost savings, fast convenience, avoiding many risks when carrying cash.

b. Alipay review – Additional Function

Another obtainable main button is termed “Collect”. Pressing it allows the owner to gather the debts from individual borrowers. That’s right, not solely is Alipay a payment answer for business or service spheres, it’s also usually used for the social cash exchange. If somebody owes you money, you’ll be able to generate a QR-code with the “Collect” choice. The person then scans it and pays the desired quantity back. the quantity is inserted by each side either before or when scanning.

So that this function is simpler to use among a circle of friends, colleagues, or members of the family, Alipay permits the creation of chats within the app. The “Friends” button opens the contacts list of individuals the user is aware of who use Alipay. The user will prefer to add them to a conversation. there’s a special “Transfer” choice among the chat. This way, friends will organize a loan by chatting and at once transfer cash while not exit the app.

Alipay provides a radical following history of all the user’s transactions. The profile information contains the main points of all incoming and outgoing payments. The app also shows the account balance.

Nevertheless, cash from the Alipay account may be withdrawn to the credit card or the other way around. for example, it should be helpful if the user lends a great deal of cash. All the sums “collected”, land on your account balance. However, if you would like to use a credit card outside of Alipay or the total on your charge card is insufficient; money transferred from the account may be a lifesaver.

Digital money transfer in China
Digital money transfer in China

The review Alipay app conjointly provides options like credit card bills payment, bank account management, P2P transfer, prepaid mobile phone top-up, bus, and railroad ticket purchase, food order, ride-hailing, insurance choice, digital identification document storage. Alipay also permits on-line check-out on most Chinese-based websites like Taobao and Tmall.

The Alipay app permits users to feature their own services provided by totally different corporations to form a lot of individualized experience. After launching in the country as a way to buy items online, mobile payments quickly broke into stores and became the way Chinese people use money. When dining out or shopping, people pay by scanning the QR code at the table or handing the code on the phone to the cashier to check. From museums, souvenir shops to grocery stores and brush shops, all receive mobile payments. Instead of asking whether or not to accept a credit card, customers will ask the seller if the review Alipay is accepted.

Since late-2008, Alipay has promoted public service payment services and has lined over three hundred cities nationwide, supporting over 1,200 partner organizations. additionally to utility bills like water and electricity, Alipay also extends their services to areas like paying transportation fines, property fees, and cable tv fees. Common on-line payment services also embody hydropower coal payment, tuition payment, and traffic fine.

On 15 Jan 2009, Alipay launched a credit card reimbursement service, supporting thirty-nine domestic bank-issued credit cards. it’s presently the most common third-party repayment platform. the most benefits are free credit card bills checking, repayments with no administrative fee, additionally as automatic repayment, repayment reminders, and alternative value-added services. within the half-moon of 2014, seventy-six of credit cards were conjointly paid by Alipay wallet.

From Dec 2013, many chain convenience store firms, together with Meiyijia, Hongqi Chain, and Qishiduo C-STORE and 7-Eleven, have in turn supported Alipay payment; in Dec, Beijing taxi drivers began to just accept Alipay to pay the fare. Afterward, Wanda Cinema, Joy City, Wangfujing and alternative large-scale retail firms also as movie theaters, KTV, and catering firms have access to Alipay.

From March 26, 2019, the service charge are going to be charged for the payment of credit card through Alipay. Customers solely pay the portion of the payment that exceeds 2,000 yuan at 0.1%.

In Nov 2019, Alipay introduced Tourpass, a service element that permits non-Chinese users to use its mobile payment feature by pre-loading Chinese Yuan equivalent foreign currency into the app.

c. Alipay review – Engaging everywhere

  • Everywhere in China:

Uniting various services in one digital setting is well-liked today. Even Facebook is aiming to merge with Whatsapp and Instagram for higher practicality. The tendency originates from the Chinese super apps like WeChat. The Chinese population is employed thereto multi-functionality, they realize it convenient and apply that principle where they will.

Alipay isn’t exclusive. Besides easy transactions, it options several helpful services from partnering organizations. You can order a taxi cab directly from the Alipay app. Didi Taxi service provides all the standard options of a ride-sharing app (choosing the destination place on a map, automatic identification of one’s location by GPS, etc.). Naturally, payment is completed via Alipay at the end of the trip.

 Alipay on taxi
Alipay on taxi

Users may order food from the review Alipay interface, borrow a motorbike, obtain travel tickets, reserve a seat and get hold of entry to several cultural events, or a cinema. If you don’t need food take-out, you’ll be able to still use Alipay to scroll down the list of the closest cafés and restaurants. The app assists you all the thanks to the eating place with gradual directions.

Another recent use of Alipay suggests approaching transformations within the public transportation sphere. Hangzhou was the first town to introduce a scanning methodology for coming into underground stations. Passengers do not want any tokens or plastic cards for a ride. just a mobile phone with the Alipay app is enough. It helps users to avoid queues and facilitates the work of the underground workers.

  • Aiming for the global e-commerce:

According to one amongst our payment partner, Rick (alias), the BD manager of a Shenzhen-listed cross-border payment supplier, Alipay, and WeChat cross-border’s daily dealings quantity is between five hundred to 600 million RMB. Based on this range, the annual dealings volume amounts to around two hundred billion RMB. Compared with the full mobile dealings volume inside mainland China (152,770 billion RMB), this can be a mere 0.13% of the full dealings quantity.

Rick conjointly review Alipay cross-border has around 150% additional dealings volume compared to WeChat cross-border payment. This is sensible given the very fact that Alipay was the primary cross-border payment supplier to enter most countries, and is launching aggressive promotion campaigns.

With a huge number of active users, it also provides international merchants with a valuable new promotional channel. Alipay can target Chinese customers who have just bought a flight to travel with relevant offers, links, and information.

Alipay’s ambitions are pretty high. the corporate was active in six European countries last year, however, wishes to be available during a total of twenty European countries at the tip of this year, Li Wang, Head of EMEA at Alipay’s parent company ant financial, told Dutch newspaper Financieel Dagblad. “You can’t achieve success if you’re taking part in defense. The payments market is dynamic apace in Europe”, she explains. “We’ve detected that buyers need one thing completely different which is what drives innovation.”

d. Delightful Bonus

Gone are the times once you had to redeem points for miles and miles for flights – however on condition that you were flying 2 years from that day, on Monday in March, at 7:30 p.m., with the condition that you simply build 3 stops before finding your thanks to the ultimate destination. Loyalty programs are currently tailored and versatile, and a growing range is steam-powered by artificial intelligence (AI), all in pursuit of giving shoppers what they need. That comes as digital payments are getting into the thought, driven by technology and demographics.

Alipay Review - Alipay New Year rewards
Alipay New Year rewards

Users of the Alipay review platform are no exception. They get pleasure from various discounts at several stores and receive special little gifts throughout the seasonal promotions and special events. Furthermore, this app may be a crucial a part of the Ant Financial fintech system created by Alibaba. They would gain access to the world’s largest monetary market fund, Yu’e Bao. This could be used for investments, loans and even shopping for insurance. Ant Financial also cooperates with several third parties to assist their purchasers to reach their monetary goals smoothly.

Targeted rewards and offers will facilitate convert browsing (and tentatively filled on-line baskets) into sales, that “help the loyalty expertise, facilitate the whole experience with the card program and help the distributor, therefore it’s a win for all three.”

 

Conclusion

Hundreds of millions of people in China are moving into larger cities. The population is becoming increasingly urbanized, this can lead to many benefits such as previously untapped markets, and a larger customer base. Online retail is growing at a higher rate than that of the US, however, it is not close to reaching its saturation level. Not only paying at the payment stage but this digital economy, including Alipay, also creates new values, new business models in the service ecosystem that embrace users. Since then, product experience, loyalty, user interaction have also been enhanced, and a huge network value chain has been formed both inside China and on the globe.

This is high time that foreign business takes advantage of the technology flexibility to access the billion-people market. With a solid ten year experience in the field of e-commerce, CO-WELL helps several corporates to integrate Alipay on their e-commerce system. We are ready to take on your requirements and be the drive behind your success.