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In a world rapidly becoming cashless, mobile payments are transforming travel, with Asia leading the way as the technology spreads globally.
Peden Doma Bhutia
The recovery of global travel in 2024 will come with a demand for seamless cashless transactions. Alipay+, Ant International’s cross-border mobile payment and digitalization service, has seen its transaction volumes triple this year.
Speaking to Skift, Douglas Feagin, president of Ant International, sheds light on what’s driving this adoption and how it’s shaping the future of travel.
Consumer behavior towards payments has also changed drastically post-pandemic. As the use of physical cash declined, mobile wallets and QR code payments became increasingly popular, especially in Asia. Alipay+ was launched in 2020 to capitalize on this trend, allowing these travelers to use their local payment apps abroad.
From local to global
Commenting on the evolution, Feagin said: “These apps used to be for local use only. Today, millions of users in global destinations can enjoy the same convenience, driving adoption.”
This shift is largely driven by three factors: simplicity, trust and transparency. “Travelers no longer have to worry about exchanging currencies or downloading additional apps. They can rely on the well-known payment systems,” says Feagin.
As of October 2024, Alipay+ has more than 30 payment partners, including leading e-wallets and banking apps from Asia and beyond, serving 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 leading the way in mobile payment adoption, the technology is spreading globally.
Regions such as Latin America, the Middle East and Europe have also adopted mobile wallets. Examples of this are the Italian Tinaba and the European Bluecode, an open payment system with QR codes.
“Through our sponsorship with the Union of European Football Associations (UEFA) this summer, we increased merchant engagement and campaigns before and during the Championship period, and saw a good increase in the number of transactions and travelers using their Alipay+ supported payment app while they were in Europe. he said.
UEFA host cities such as Berlin and Munich saw the biggest increase in Alipay+ transactions, according to Alipay+.
Ant International recently announced a three-year strategic partnership with Tottenham Hotspurs, as its official partner for global payment solutions and digital wallets. “This is to collectively excite the club’s fanbase across Asia Pacific, while connecting more European merchants with Asian travellers,” Feagin said.
On Friday, Alipay+ announced that Italian fintech app Tinaba has become the first European fintech to integrate the Alipay+ Mini Program solution.
McKinsey & Company estimates that digital payments in Asia will account for 65% of total payments by 2024 (compared to an average of 52% globally).
The focus on local experiences
Spending on Alipay+ also reveals travel trends.
In countries like Singapore, South Korea and Malaysia, Alipay+ has seen an increase in transactions with small, local suppliers, which Feagin says helps strengthen local communities and cultures.
“Our priority is to expand merchant coverage so travelers can make mobile payments wherever they are, whether it’s a mall, a mall or a street market,” he said.
He believes this can play an important role in promoting this sustainability by boosting tourism to lesser-known areas. Through partnerships with national QR code systems, travelers can now use digital payments in smaller cities and rural areas, which can help boost the local economy and promote inclusive growth.
“The rollout of Alipay+ coverage, even via national QR, may be staggered. But our focus is on continually onboarding these buyers and sellers, and we are making good progress,” he said.
Earlier this year, Pelago, the travel experience arm of Singapore Airlines Group, announced a partnership with Primer, a global payment infrastructure provider.
Shaping the future of travel
As digital payments become more integrated into the travel experience, they evolve beyond just transactions.
Alipay+ has moved from offering cross-border mobile payments to destination marketing through A+Rewards and digital lifestyle services, including in-app tax refunds and transportation.
In Thailand, for example, Alipay+ partnered with the Tourism Authority of Thailand to launch Alipay+ D-hub, a customizable in-app mini-program that promotes lesser-known destinations directly within the Alipay app to Chinese tourists, Thailand’s largest source market. Feagin said it would eventually be rolled out to other Alipay+ partners.
The in-app mini-program provides essential travel and cultural information, local merchant recommendations, and city and province guides to Thai destinations
This initiative, according to Feagin, has successfully driven tourism to lesser-known destinations such as Rayong Province, Phra Nakhon Si Ayutthaya and Hai Yat.
“Payments are just the first step. With the rise of mobile payments, we are unlocking new opportunities between consumers and merchants,” Feagin explains.
