Tuesday, February 27, 2024
Information from Alipay+ and PayNet indicates a strong recovery in consumer spending during the first Chinese New Year (CNY) travel season that returned to normalcy after the Covid-19 pandemic, particularly in the area of international tourism in Malaysia.
The Alipay+ network in Malaysia has expanded to better serve tourists. Since November 2023, over 1.9 million DuitNow QR merchants have started accepting Alipay+, offering tourists the convenience of using their domestic e-wallets anywhere in the country. Furthermore, Alipay+ has collaborated with leading Malaysian merchants in sectors crucial to tourism, such as retail, food and beverage, and daily needs, including 7-Eleven, Watsons, myNEWS, KK Supermart, Sephora, Uniqlo, Eraman Duty Free, DurianBB, and Tealive. These partnerships have led to unique CNY promotions.
Consequently, for CNY 2024, Alipay+ data indicates that Malaysia ranks as the fifth most favored destination worldwide for Chinese travelers. The expenditure in Malaysia during the first seven days of CNY was double that of CNY 2019 and over ten times higher than in 2023.
“With its use spreading across age and income groups, mobile payment is increasingly becoming an
important promoter of local and cross-border commerce in Asia and beyond,” said Dr Cherry Huang,
General Manager of Alipay+ Offline Merchant Services, Ant International. “Particularly through our
partnership with PayNet, we have seen a significant increase in Alipay+ transactions on the DuitNow
QR network, which shows that it not only provides great convenience to tourists but also brings more
opportunities to local businesses, both big and small. We look forward to strengthening our
collaborations with local partners to contribute to the vibrant tourism sector in Malaysia.”
Through Alipay+, 13 international e-wallets and banking applications are now operational in Malaysia, including Alipay (Chinese mainland), AlipayHK (Hong Kong SAR, China), Kakao Pay, Naver Pay, and Toss Pay (South Korea), Changi Pay and OCBC Digital (Singapore), GCash and HelloMoney by AUB (Philippines), Hipay (Mongolia), MPay (Macao SAR, China), TrueMoney (Thailand), and Tinaba (Italy). This expansion, coming just before the peak travel period, offers tourists enhanced payment convenience and opens up new avenues for growth among local businesses. Malaysia, ranking as the sixth most favored destination among Asian tourists besides China, sees significant expenditure from visitors from Hong Kong SAR, the Philippines, and Thailand, thanks to transactions made through Alipay+ partner apps.
Furthermore, in November 2023, a collaboration between Alipay+ and PayNet allowed travelers using eight Alipay+ supported e-wallets to conduct QR payments smoothly at various DuitNow QR merchant sites across Malaysia. Since its introduction, Alipay+ has markedly boosted the volume of inbound cross-border QR transactions via DuitNow QR. From December 2023 to February 2024, the average daily transactions and spending by Alipay+ partner app users at DuitNow QR merchants both surged by 2.5 times.
Gary Yeoh, Chief Commercial Officer of PayNet, expressed pride in this collaborative initiative, “As
the national payments network and a pivotal infrastructure for Malaysia, we are immensely proud to
be part of this transformative journey with Alipay+. This partnership, exemplifying how strategic
collaborations can drive economic growth and enhance the tourism experience, has facilitated easy
payment for international visitors and open up a world of opportunities for local merchants,” he said.
“As we mark 50 years of strategic partnership between Malaysia and China, various initiatives have
been introduced to promote tourism in Malaysia. These include the announcement of visa-free travel
and ongoing discussions about establishing direct flights between smaller provinces in China and
Malaysia. With the government actively working to boost tourism, particularly in preparation for Visit
Malaysia 2026, our focus remains on enhancing travellers’ cashless experiences. This initiative aims to
ensure visitors can fully enjoy their stay in a nation that embraces digital transformation. Looking
ahead, PayNet is committed to innovating and expanding our services to support the dynamic needs
of tourists and merchants alike, reinforcing Malaysia’s position as a top-tier global destination,” he
added.
Strengthened recovery, diversification of destinations, and evolving preferences of outbound Chinese tourists through Alipay usage
Alipay spending data reveals Hong Kong SAR, Japan, Macao SAR, Thailand, Malaysia, Singapore, South Korea, France, Australia, and Canada as leading destinations for Chinese tourists. Notably, Thailand, Malaysia, and Singapore experienced a 7.5% increase from 2019 and surged by 580% compared to 2023, with Thailand at the forefront in spending volume and Malaysia exhibiting the most remarkable growth. New visa exemption policies in key Southeast Asian countries, such as Malaysia, play a pivotal role in facilitating the surge in cross-border tourism.
A worldwide initiative aimed at drawing Chinese tourists has been vigorously pursued through the Alipay+ merchant network starting December 2023. During the Chinese New Year (CNY) holiday from February 9th to 12th, overseas transactions by Alipay users exceeded those in 2019 by 7%, with consumer expenditure reaching 82% of the 2019 figures, or more than doubling the 2023 figures. The Chinese traveler is now broadening her horizons beyond traditional pursuits like shopping and sightseeing, seeking deeper and more authentic local experiences. During the CNY week globally, expenditure on food and beverage by Chinese tourists was 70% higher than in 2019, indicating a shift from city centers to hidden local gems.
Boosting outbound travel via Alipay+ partner e-wallets and banking applications
The Chinese New Year, celebrated extensively among Asian communities, has seen boosted cross-border spending through the region’s premier e-wallets affiliated with Alipay+, marking a 252% year-on-year increase thanks to new partnerships and elevated travel in 2023. Daily transaction averages soared by 304%. Japan, South Korea, Macao SAR, Thailand, and Singapore emerged as the top five destinations for Alipay+ users outside of mainland China.
International e-wallets and Alipay accounts enabled for international card use in mainland China have seen exponential growth. During the CNY 2024 period, international visitors in China spent five times more using their international card-enabled Alipay accounts at mainland merchants compared to 2023. Chinese eateries, tourist spots, and public transport were highly favored by international visitors experiencing the festival. Since September 2023, Alipay+ has integrated ten major e-wallets and payment applications in Asia, such as Touch ‘n Go eWallet, enhancing service for their roaming users within Alipay’s extensive network of 80 million merchants in China.
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