China Payments Research

The recent wave of Alipay partnerships with merchant acquirers has spanned the globe. With the common goal of letting Chinese tourists pay with Alipay, one of their favorite payment methods, Ant Financial has partnered with Wirecard in Germany, Ingenico in France and First Data in the US.

With November 11th right around the corner, we will soon be in the midst of the China's largest shopping day of the year. The real question will be what happens this year. We know that e-commerce sales will be huge, but will Alibaba be able to beat their 91.2 billion RMB ($18.8 billion) 2015 singles day turnover and set another global record for the largest one day GMV sales?

Alipay, the most popular mobile payment app in China, has launched a brand new feature at the end of September called “Everywhere”. This new function can help Alipay users to find people nearby who may provide certain services you want. So if you need a plumber, you can use "Everywhere" to find one near you. 

Meituan-Dianping, the result of the merger of the group buying titans Meituan and Dianping, completed the acquisition of payment company QiandaiPay on the September 27th. The deal is significant in a few ways and demonstrates the current state of affairs in China’s payments industry.

Over the past year, China's National Development and Reform Commission had been defining and refining the new payment card merchant fees. These came into effect on September 6th. The requirements have a range of implications, and are impacting the industry already.

Xiaomi, the well-known Chinese technology focused electronics company, has announced the launch of its payment services “MI Pay”, which is in cooperation with China Union Pay, the biggest Bankcard Association in China. The official launch date is September 1st. After Apply pay, Samsung Pay, Xiaomi is yet another mobile company joining the competition with Alipay in the third-party payment industry in China.

The recent announcement that Canadian merchants will now accept UnionPay’s mobile QuickPass payment, along with Ingenico partnering with Alipay to provide mobile payments in Europe, highlight that huge strides are being made by both UnionPay and Alipay to infiltrate Western markets and that these efforts are being supported by the Western payments industry.

On Aug 12th 2016, the People’s Bank of China (PBOC) issued license extensions to the first group of companies in China to ever receive a third party payment license five years ago.  It was a long wait for the 27 firms. Their licenses, including those of industry giants Alipay and China UnionPay, had expired 78 days ago. 

Ant Finance, the most valuable Fintech startup in China, announced their plan to launch another payment app based on Virtual Reality (VR) technology. It will allow customers to make payments when they are using VR.

At Lendit’s China conference in Shanghai this week, Kapronasia learned that Chinese digital payments giant Alipay is close to rolling out its new facial recognition software to the public. The lender – whose payments system holds about 48 percent of China’s online payments market share last year – has already made the feature available for employees, and plans to open it up to the public in the next few months, according to a source from Ant Financial. To pay with a selfie, Alipay users use a camera installed on the online payments platform to take a picture of themselves and the platform uses biometric methods to verify their identity. Ant Financial, which runs Alipay, is an affiliate of Hangzhou-based Alibaba Group Holdings.

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