What is Alipay and how does it work?

Alipay is a mobile payment app used to make cashless payments the world over. It’s very popular in China where digital payments are replacing card and cash payments. In fact, over 90% of the population now use mobile payment systems.If you’re travelling to China, you can use it to pay for goods and services online, when you sign up for Alipay’s new 90-day tour pass.Are you a Chinese national living overseas? Good news - you’ll find that WorldRemit has also partnered with Alipay to allow you to send money straight to the Alipay e-wallets of your family and friends back home.To find out more about Alipay and how it can help you - read this article . It should answer any questions you may have.

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WorldRemit Content Team

5 mins readUpdated
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What is Alipay?

Alipay is the most popular e-Wallet service in Asia. In China, millions of transactions are processed using Alipay each day. Residents use its digital wallet on their smartphone to quickly and conveniently make payments in-store, online, and by money transfer.It is part of the Alibaba group and partners with a host of different financial institutions - from online shops to money transfer companies like WorldRemit. It supports a whole host of currencies. So, you can create Alipay payments in the currency of your country - from  AUD to EUR, JPY to USD. The default local currency for Alipay is CNY and customers also see their purchase amount in CNY.

How does Alipay work?

The Alipay e-wallet app allows you to save your debit or credit card details to the app.  You can then use your mobile phone to make payments instead of using cash or a bank card.It’s widely used by those living in China for various transactions, from paying in-store and online to receiving international money transfers from relatives overseas.It’s also an excellent choice for tourists and business travellers visiting China, who can sign up and get a 90-day pass to use the service.Chinese citizens can also send money overseas by selecting the international transfer option within Alipay.Alipay can also be used the world over. It has expanded internationally through a number of affiliate agreements. Stores, banks, and hotels, particularly in areas popular with Chinese tourists, have terminals and websites that accept Alipay payments.

How to use Alipay

You can use Alipay to make different types of payment - online and in-store. All that you need is a smartphone or computer.

Online payments

Simply follow these steps to use Alipay for online payments:

  1. Check if the Alipay service is available with the online merchant.

  2. Download the Alipay app onto your smartphone from the app store and sign up for an account, which is free.

  3. Add and save your credit and debit card details within your account to start making mobile payments.

  4. Verify your identity, phone number and bank information.

  5. Use the app to download and buy prepaid cards using your international credit or debit card.

The same process should be followed if you’re using Alipay’s 90-day tour pass service. You can top up with a minimum of 100 yuan and a maximum of 2000 yuan at any one time. And then top up again as required.

In-store payments

With Alipay you can pay for goods in-store using your mobile. Payment is simple, and there are two methods:

  1. The merchant-presented mode involves scanning the merchant’s QR code on your phone. You can then enter the payment amount to complete the payment. You will often find the merchant QR code next to the tills, or on restaurant tables.

  2. The second method is the customer-presented mode. Some merchants may also have Point of Sale systems. In this case, the merchant can scan the payment code presented by you to collect the payment. This can be faster, as it works well even where there’s a weak connection.

International money transfers

You can also use Alipay to pay for transfers when you send money abroad. And who better than with WorldRemit? With us and Alipay, you can send money to and from China quickly, securely and at a low cost.

Is Alipay safe?

Alipay is a well-established and secure service. Generally, mobile payments are even safer than paying with your credit or debit card. Instead of your actual card details, the merchant receives an encrypted version of your financial information.

What technology does Alipay use to keep your data safe?

  • Advanced encryption technology

  • Real-time risk monitoring system

  • Security protection (including compensation for unauthorised transactions and 90-day payment protection)

Here are some ways to keep yourself safe when using Alipay:

  • Always use secure and unique passwords and PINs

  • Always keep your phone locked when not in use

  • Activate biometric phone locking, if your device has it

  • Avoid making payments over public Wi-Fi

  • Monitor your card activity for transactions you don't recognise.

What are the benefits of using Alipay?

Mobile payments are booming, and the advantages of using an e-wallet make it easy to understand why. Here are some of the benefits of using Alipay:

1. It’s safe - There’s no need to carry around bank cards or large amounts of cash when you use Alipay.

2. Fast and convenient - Enter your PIN  to make a payment online.  You only need to fill in your personal information and card details once and not for every transaction.

3. Widely recognised - Alipay is China's most popular e-Wallet service

4. It’s secure - A PIN is needed to authorise every transaction. If you have a smartphone with a touch ID feature, then you can also use your fingerprint to authorise the transaction.

5. It’s comprehensive - You can use Alipay for almost any payment while you're in China. As well as offering in-store and online mobile payments, the app also allows you to top up your mobile airtime, order and pay for a taxi or takeaway.

6. Receive remittances quickly - Alipay’s partnership with WorldRemit means that Alipay users in China can now conveniently receive remittances from overseas directly into their Alipay e-wallets almost instantly.

WorldRemit's partnership with Alipay

WorldRemit partnered with Alipay to make it easier and more convenient for Chinese nationals, living in the diaspora, to transfer money to their family back home. If you need to send money to your family in China, you can use your WorldRemit account to transfer money directly into their Alipay account. Providing that your receiver has set up their Alipay account to receive remittances, they should receive your money transfer into their account in a matter of minutes!

What is Alipay: FAQs

Is Alipay the same as PayPal ?

Alipay is China's equivalent to PayPal. Both Alipay and PayPal provide users with e-wallet services, allowing them to make mobile payments.

Can I use Alipay without a Chinese bank account?

Yes, the new 90-day tour pass service allows foreigners visiting China to use Alipay with an international bank account.

Is Alipay a credit card?

No, it’s a mobile payments service. You use your credit or debit card to preload funds into your Alipay Account.

Is Alipay available outside of China?

Yes, Alipay has expanded internationally through a number of affiliate agreements. Stores, banks, and hotels, particularly in areas popular with Chinese tourists, have terminals and websites that accept Alipay payments.

The contents of this blog post does not constitute legal or financial advice and is provided for general information purposes only. If you require specific legal and / or financial advice you should contact a specialist lawyer or financial advisor. Information true at time of publishing.

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