Alipay+ sees rising demand in Korea as global wallet gateway

Weixiao Jiang, general manager of Alipay+ North Asia and North America division, speaks during a press conference in Seoul, Tuesday. Courtesy of Alipay+

Digital wallet gateway Alipay+ has seen rising demand from foreign visitors to Korea and local businesses, as the country experiences a growing influx of tourists and nationwide spending.

The head of Alipay+, a business unit of Singapore-based Ant International, said Tuesday that the service’s growing popularity stems not only from the convenience it offers global users but also from its support for small and medium-sized businesses seeking to expand their customer base.

In Korea, Alipay+ saw the number of QR code transactions increase by 18 percent this year, while total payment volume (TPV) grew 16 percent from the previous year. The rise was driven by more tourists using Alipay+ partner wallets and banking apps to make digital payments for various services.

Mainland Chinese tourists using Alipay accounted for the largest share of Alipay+ users in Korea this year, followed by visitors from Hong Kong using AlipayHK. They were trailed by users from Malaysia (Touch ’n Go eWallet), Japan (PayPay), Macao (Mpay) and the Philippines (GCash). Most of the spending occurred in Seoul, Incheon and Busan, and on Jeju Island.

Most Alipay+ users in Korea spent their money on public transportation this year. The number of transactions in the sector jumped 120 percent year-on-year, while TPV rose 23 percent. The company said tourists can use Alipay+ partner wallets to pay in more than 70,000 taxis in Seoul and over 100 airport limousine buses at Incheon International Airport. Alipay+ is also accepted in more than 1,200 buses on Jeju Island and over 15,000 eZL taxis in Daegu.

A customer, left, makes a payment at a beverage stall in Myeong-dong, Seoul, in this undated photo. Courtesy of Alipay+

Beauty clinics accounted for the second-largest share of Alipay+ spending in Korea this year, with the number of transactions in the sector rising 90 percent year-on-year and TPV surging 123 percent. The food and beverage sector recorded the third-highest transaction volume, posting a 47 percent increase in transaction numbers and a 54 percent rise in TPV from a year earlier.

Alipay+ also partners with Korea’s leading digital wallet platforms, including Kakao Pay, Naver Pay and Toss Pay, enabling Korean consumers to use their preferred payment apps in 100 countries. Through Alipay+, Kakao Pay users can make transactions at 150 million Mastercard-accepting merchants worldwide.

“We’re committed to driving sustainable travel by empowering local businesses while enhancing travelers’ experiences, helping them visit more destinations and pay easily with their home wallets abroad,” said Weixiao Jiang, general manager of Alipay+ for North Asia and North America, during a press conference in Seoul.

“Our artificial intelligence-driven solutions ensure that merchants, big or small, can grow their businesses by tapping into international tourist demand,” she added.

Partnerships with Korean companies such as Shinsegae Group and fintech developer i-Aurora have also helped attract more tourists to Alipay+ by linking them to affiliated retail and service providers in Korea. In particular, i-Aurora has enabled Alipay+ users to pay street vendors in Myeong-dong and is working with Alipay+ to develop a new digital platform for K-pop concerts, exhibitions and merchandise. Meanwhile, Shinsegae department stores and duty-free outlets have begun accepting Alipay+ as a payment method and are offering exclusive promotions for Alipay+ users.