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In a rapidly cashless world, mobile payments are changing the way we travel, with Asia leading the way and the technology spreading globally.
Peden Doma Butia
The rebound in global travel in 2024 comes with the need for seamless, cashless transactions. Ant Financial’s cross-border mobile payments and digital service Alipay+ has tripled its transaction volume this year.
In an interview with Skift, Ant Financial President Douglas Feagin explains what’s driving this adoption and how it’s shaping the future of travel.
After the epidemic, consumers’ payment behavior has also undergone tremendous changes. As the use of physical cash declines, mobile wallets and QR code payments have become more popular – especially in Asia. Alipay+, launched in 2020, capitalizes on this trend by allowing these travelers to use local payment apps while abroad.
From local to global
Talking about the evolution, Feagin said: “Before, these applications were only available locally. Today, millions of users can Enjoy the same convenience at global destinationswhich is driving adoption. “
This shift is primarily driven by three factors: simplicity, trust and transparency. “Travelers no longer need to worry about exchanging currency or downloading additional apps. They can rely on a familiar payment system,” said Feagin.
As of October 2024, Alipay+ has more than 30 payment partners, including leading e-wallets and banking apps in Asia and beyond, with 1.6 billion consumers, connecting consumers to more than 90 million merchants in 66 markets .
No longer just an Asian story
Interestingly, Feagin said that while Asia is the frontrunner in mobile payment adoption, the technology is spreading globally.
Regions such as Latin America, the Middle East and Europe have also been adopting mobile wallets. Examples include Tinaba in Italy and Bluecode in Europe (an open QR code payment solution).
“Through our Sponsorship from the Union of European Football Associations (UEFA) This summer, we ramped up merchant engagement and activity before and during the tournament and saw a significant increase in transaction volume and the number of travelers using Alipay+ powered payment apps during Europe. “
According to Alipay+ data, UEFA host cities such as Berlin and Munich saw the largest increases in Alipay+ transactions.
Ant Financial recently announced a three-year strategic partnership with Tottenham Hotspur, becoming its official global payment solution and digital wallet partner. “This is to jointly inspire the club’s Asia-Pacific fan base while connecting more European business people with Asian tourists,” Feigin said.
On Friday, Alipay+ announced that Italian fintech app Tinaba has become the first fintech company in Europe to integrate the Alipay+ mini program solution.
McKinsey & Company estimates digital payments in Asia By 2024, total payments will reach 65% (versus the global average of 52%).
Focus on local experience
Consumption on Alipay+ also reflects travel trends.
Feagin said that in countries such as Singapore, South Korea and Malaysia, Alipay+ has led to a surge in transactions for small local suppliers, which helps empower local communities and cultures.
“Our priority is to expand merchant coverage so that travelers can make mobile payments anytime and anywhere, whether it’s a shopping mall, hawker center or street market,” he said.
He believes this could play an important role in promoting sustainability by driving tourism to lesser-known areas. Through a partnership with the National QR Code Initiative, travelers can now use digital payments in smaller cities and rural areas, helping to boost local economies and promote inclusive growth.
“The rollout of Alipay+ coverage, even through QR codes across the country, is likely to be staggered. But our focus is on continuing to attract these acquirers and merchants, and we are making good progress,” he said.
Earlier this year, Singapore Airlines Group’s travel experiences arm Pelago announces partnership with Primera global payments infrastructure provider.
Shaping the future of tourism
as Digital payments become more integrated As travel experiences continue to evolve, they move beyond transactions.
Alipay+ has expanded from offering cross-border mobile payments to destination marketing and digital lifestyle services through A+Rewards, including in-app tax refunds and transportation.
For example, in Thailand, Alipay+ partnered with the Tourism Authority of Thailand to launch Alipay+ D-hub, a customizable in-app applet that promotes little-known products directly within the Alipay app to Chinese tourists, Thailand’s largest source market. destination. Feagin said the service will eventually be rolled out to other Alipay+ partners.
In-app mini-apps provide important travel and cultural information, recommendations for local businesses, and city and province guides to Thai destinations
Feagin said the initiative has successfully boosted tourism in lesser-known destinations such as Rayong, Ayutthaya and Haiyi.
“Payment is just the first step. With the rise of mobile payments, we are unlocking new opportunities between consumers and merchants,” Feagin explained.
