Not having had, as Italians, a strong sporting interest in the final stages of the European Championship that ended a few weeks ago in Germany, given the embarrassing situation made by the Azzurri, perhaps it was easier to notice the impressive sponsorship that ANT International made during the event. The name of the company is probably unknown to most, but behind it lies the electronic payment giant Alipay.
In China, credit cards are outdated
The company, based in Singapore, is developing services that we can call fintech to support the Alipay platform outside of China. Before talking, quoting verbatim how the company defines itself, about how Ant International aims to power the future of global trade through a comprehensive set of technological solutions for digital payments and financial services, it is necessary to make a brief introduction on the importance that Alipay plays in China. While we are still discussing the ceiling on the use of cash and even though digital payments, especially those related to credit cards, are very widespread, in China the‘entire financial ecosystem is based on mobile payment. It is practically impossible to buy goods or services in China without having a smartphone and an e-wallet, which can be similar to Apple Pay, therefore with a credit card attached, or to the very Italian Satispay, therefore loading an amount on the wallet in advance.
The widespread diffusion of these payment systems has made it possible to extend the number of services that a Chinese user can access through their wallet. It starts with services related to actual payments, not only for single transactions but also to pay bills or transportation, but it reaches the granting of a mortgage, wealth management or insurance services. Alipay first and foremost, and other similar services, have therefore become the primary payment method in China and are strongly integrated into the everyday life of every Chinese consumer.
1 billion people in China use Alipay
It is in this context that ANT Group, the holding company that manages Alipay’s activities in China, established ANT International, born with the mission of offering services for Alipay users outside of China. This mission has since expanded and we will see in which direction, but the main service for which ANT International was created has now reached a high level of maturity. Edge9 met in London Douglas FeaginChairman of Ant International and Senior Vice President of Ant Group, who gave an effective update on the company’s development and the services it offers on the market.
Mobile payment apps and therefore the ability to pay for any product or service anywhere are now so ingrained in the lifestyle of all Chinese consumers, that they expect to be able to operate in the same way even when going abroad. Since 2015, ANT International has begun to make the Alipay payment system global. It allows a Chinese consumer who goes abroad to use the same form of payment in other countries, which is not at all a given. This need is particularly felt because many of those consumers, precisely because they are so accustomed to using mobile payment, do not have a credit card, which are much less widespread in China than they are, for example, in Europe.
In 2020, a further step was taken, extending cross-border payment capabilities to over 25 wallets in other Asian countries, in addition to China, among others Korea and Thailand, with the Alipay+ service. The aim of the service is to make digital payments accessible in all countries covered by the service to “federated” wallets, which can therefore take advantage of Alipay+’s penetration practically all over the world. The numbers are truly very significant: Alipay has 1 billion users in China and another 500 million in other Asian countries. It is perhaps obvious, but it is worth repeating, that Alipay+ service is dedicated exclusively to Chinese and Asian consumers who travel to other countries and therefore is not designed for international users who, hypothetically, decide to travel to China or other Asian countries where the other federated wallets come from. There is no doubt, however, that the spread of Alipay+ offers undeniable opportunities for commercial enterprises that support the service, making purchases possible with a means, mobile payment, that is taken for granted by those consumers.
The goal is to grow in Europe
In Europe today there are over 400,000 commercial establishments that accept digital payments from the Alipay+ circuit. This number was achieved with a long work lasting 10 years and, as demonstrated by the meeting we had, today ANT International’s goal is to further consolidate its presence in Europe, seen as one of the most important markets for the development of the service. Douglas Feagin wanted to underline how the open setting of the platform has the objective of creating a cohesive ecosystem that allows, on the one hand, to extend the number of wallets present and on the other to give concrete guarantees to commercial establishments, an element that is essential to further increase their number, a bit in all sectors, which already today range from food, to tourism, of course to retail and transport. Another advantage of the platform is that all affiliates can rely on the (now long) history of the company to be sure that all operations are carried out in compliance with international regulations, in particular the European ones, which are particularly stringent.
The impact and importance of Alipay+ are undeniable and contribute to making markets perceived as distant increasingly interconnected. Alipay+ will remain for a long time the main service offered by ANT International, which is however differentiating its activities, in a way consistent with its mission. The first step is Anthem which, leveraging its expertise in digital payments, is a platform that allows small and medium-sized businesses to process digital payments in their online activities, primarily related to e-commerce. Then there is WorldFirsta financial platform, also designed for small and medium-sized Asian companies that are entering international markets, to easily manage transactions in different currencies. ANT International has also recently launched Anext Banka “digital bank” dedicated to companies, also Asian.
The scale and growth potential of Alipay+ is significant, and ANT International seems to have a very clear idea of how to continue its growth path. From a European perspective, the service offers an undeniable opportunity for affiliated merchants, opening up to a growing audience of Asian consumers.
Source: edge9.hwupgrade.it
