French payments processing group Ingenico has struck an alliance with China's Alipay that will enable Chinese tourists visiting Europe to pay for goods and services using the platform's popular e-wallet.
The Paris-based payments software and terminals producer said the partnership would allow thousands of European merchants — from supermarkets and big retailers to restaurants and bars — to accept payments in-store via the Alipay app.
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On this topic IN TechnologyAlipay, the mobile payment service run by Alibaba Group's financial affiliate Ant Financial Services Group, has expanded rapidly in mainland China, and the company now says it has 450m active users — representing an estimated 80 per cent of the country's mobile payments market.
But while many of the estimated 12.5m Chinese tourists who visited Europe last year use the Alipay app back home, they have so far had to use cash or alternative payments methods when visiting Paris, Rome or other European destinations.
"Payment becomes a friction for business so we are removing this friction by allowing the retailers to capture sales to the Chinese tourist population," Jacques Behr, Ingenico's executive vice-president for Europe and Africa, told the Financial Times.
Ingenico, which provides in-store and online payments facilities throughout the world, already allows merchants to accept transactions with other e-wallet apps such as Apple Pay and Android Pay.
But it said the alliance with Alipay would "provide acquirers and respective retailers in Europe with a complete online and in-store payment solution, tailored to the Chinese outbound travellers coming to Europe".
Douglas Feagin, senior vice-president at Ant Financial, said: "One of our key missions is providing the ability for our customers to purchase goods and services around the world as they travel, and Europe is a major destination for Chinese tourists".
He added: "Ingenico has a network across all of Europe and a gateway that we could use to connect Alipay to the merchants across Europe and really be able to do that very fast".
Alipay must negotiate with banks and other acquiring agents before the app can be used in-store but both companies estimated that Alipay would be fully operational in Europe within a few months.
Alipay's ambitions in Europe are part of a wider international push. This year it collaborated with Uber, allowing people with Alipay to use it to pay for rides using Uber's car-hailing app.
It has also forged alliances with the likes of German banking software company Wirecard to offer mobile-payment services to Chinese tourists in Germany.
In April, Ant Financial raised $4.5bn from mostly state-backed investors, in what it said was the largest private placement by an internet company globally. The fundraising valued it at an estimated $60bn, placing it among the ranks of the world's most valuable private technology companies, including Uber and Chinese smartphone maker Xiaomi.
Ingenico's alliance with Alipay, announced on Thursday, also allows European internet retailers to accept payments through Alipay's e-wallet. In addition, it will allow Alipay to accept payments from European customers with MasterCard, Visa and other cards who buy goods through various online marketplaces it runs, such as AliExpress.
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Source: Alipay and Ingenico strike Europe mobile payments alliance
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