Alipay and Mastercard announced the beginning of cooperation to create a new payment method for foreign tourists visiting China.
Last Wednesday, June 21, the companies announced that the result of their partnership will be the appearance of foreigners traveling to mainland China, and the opportunity to use a cashless payment.
Venetia Li, General Manager of Ant Group Greater China International Business, is convinced that the new service that the parties of cooperation intend to offer to consumers will not only contribute to improving the quality of service but also provide additional opportunities for sellers who carry out commercial activities on the open Alipay platform.
As part of the partnership between the two companies, transactions on foreign cards that were made using the Alipay digital wallet will be processed through the Mastercard multi-channel payment platform.
Dennis Chang, executive vice president and president of Mastercard’s Greater China division, said that the opportunities arising from the partnership between the two firms mean that small and medium-sized businesses will be able to easily accept payments from anywhere in the world.
The fourth annual report of the Mastercard Economics Institute on travel shows that currently, the volume of international tourism is showing positive dynamics. In March 2023, the number of tourist travel bookings increased by 31% compared to the same period in 2019.
Venice Lee says that the new service offered by Alipay and Mastercard is beneficial not only for tourists but also for sellers since global travel is a popular one that does not slow down in terms of growth.
Ivan Guerrero, Director of Worldline’s digital commerce division for airlines and travel in the EMEA region, talks about an increase in consumer demand for localized payment methods. According to him, the positive dynamics of demand for trips means sellers have the opportunity to benefit. For this circumstance to become a source of income, business representatives should offer consumers effective and localized cross-border payments.
The proposal within the framework of cooperation between Alipay and Mastercard will allow foreigners to make payments in China using the same algorithm used by residents. In this case, consumers must link their existing Mastercard credit or debit card to an Alipay digital wallet.
Dennis Chang said that amid the revival of the tourism industry, Mastercard is pleased to cooperate with Alipay to allow cardholders around the world to enjoy maximum payment security, convenience, and peace of mind.
Travelers with Mastercard cards issued in South Korea and the Chinese Hong Kong SAR, Macao SAR, and Taiwan can register with Mastercard Travel Rewards. In this case, they will receive benefits, including cashback for purchases, meals, public transport trips, and sightseeing.
As we have reported earlier, Mastercard to Share Card Data With Other Payment Networks Under FTC Order.
