Unlike other Asian markets, which have formed bilateral QR code payment connections, LankaPay’s approach appears to be much more cost-effective and likely easier to operate and maintain from a technical standpoint. Besides Alipay+, LankaPay only has partnerships with PhonePe and UnionPay. The collaboration with PhonePe enables UPI acceptance, and the tie-up with UnionPay allows the scheme’s cardholders to scan and pay at LANKAQR merchants using the UnionPay app.
In recent years, Asian markets have increasingly felt the need to develop greater self-reliance within the region as geopolitical tensions worldwide foreshadow greater volatility in international relations. One approach is to forge stronger economic ties within the region through cross-border trade and tourism. However, what is also important is that the transactions are done in local currency to eliminate risks linked to dollarization or using other foreign currencies. LankaPay’s partnership with Alipay+ effectively addresses both of these concerns by connecting Sri Lanka with top inbound operators such as Singapore, Malaysia, and China while also allowing payments in local currency. Alipay+ provides a real-time exchange rate, and the customer pays the equivalent amount in their home currency with no additional fees from Alipay+.
With Project Nexus, a BIS Innovation Hub project aiming to enhance cross-border payments by connecting multiple domestic instant payment systems globally, gearing up for a live implementation, countries in Asia will benefit from having more models and approaches for cross-border payments to choose from. Industry observers will be paying close attention to how these various projects and initiatives function in real-world settings and whether they can complement each other without becoming overly complicated and cumbersome.