By: OTT Pay

The future of selling in a virtually and tactically connected world is the ability to accept a wide array of payment options, allowing travelers, new immigrants, and online shoppers from anywhere in the world to pay retailers seamlessly for goods and services.

Nearly 1.5 billion customers prefer to make purchases using Alipay. If retailers don’t accept Alipay payments, they risk pushing customers towards a competitor that offers the convenience. Why run the risk of losing an interested customer just because they couldn’t find their preferred method of payment?

What is Alipay?
Alipay is a mobile and online payment platform similar to Apple Pay.

Users would store their debit or credit card details in the app and then make purchases in-store and online using the app itself rather than directly using their bank-issued credit card.

In China, Alipay is by far the most popular Chinese mobile payment app; 92% of Chinese nationals with digital payment capabilities use Alipay, which is why North American companies that accept Alipay have a significant advantage.

The app is part of the Alibaba Group, which rivals Amazon as one of the world’s most diverse companies. Like Amazon, Alibaba has an online marketplace, a cloud services offering, a logistics network and an entertainment division. Unlike Amazon, it also has a robust payment platform (Alipay) that works inside and outside its ecosystem. Alipay can also support other financial services, such as insurance, lending, wealth management, and credit scoring.

Alipay’s key features include:

• Payment processing: In-store, consumers scan a QR code which triggers a payment from the Alipay app. Online, a merchant would integrate an Alipay option into their system. Either way, Alipay does the currency conversion and settles funds in the business’s local currency.
• Escrow: For extra security (especially online), Alipay delays completing the financial transaction until receipt of the purchase is confirmed by the buyer.
• Alipay mini-programs: These are apps that can be built or accessed within the main app, making it easier and faster for customers to find and purchase what they want.
• Analytics: Customer behaviour. Purchasing trends. Price comparison. It’s all tracked to help merchants target more effectively and make better decisions.

Who Uses Alipay?
The largest Alipay user demographic is between 25 and 44 years old. It has 1.3 billion users worldwide, with 900 million in China. Interestingly, the country with the second-most users is the US, as many Chinese students come to North America. Specifically, over 290,000 Chinese students are spread across the US, and approximately 11,000 are in Canada at any given time.

Who Should Be Set Up to Accept Alipay?
In North America, any retailer that expects Chinese nationals or recent immigrants from China to walk into their store or visit their website should strongly consider accepting Alipay. This would include any retailer or merchant in or near an American or Canadian city of over 500,000 people (roughly the size of Kansas City). In smaller cities, towns, counties and villages, companies that serve tourists or business travellers should also consider accepting Alipay. This would include restaurants, attractions, hotels and the like. However, it would also include shops that a traveler might visit, such as drugstores, supermarkets, florists, barbershops, and nail salons.

Online, this could be any e-commerce site, as Alipay dominates over 50% of the Chinese market share in digital payments.

How to Accept Alipay as a Merchant?
Alipay works on a system of QR codes. Merchants would generate a QR code for every product that’s on sale. Customers scan those QR codes to obtain product and price information, as well as to make payments. Alternatively, a merchant can scan a customer’s own QR code to take money from them. It’s a seamless and fast process.

How Do Alipay Fees Work?
Alipay is known for its lower fees. Consumers pay no fees except for large withdrawals: currently, the fee is set at a modest 0.1% for withdrawals exceeding RMB 20,000 (approximately CAN$3,800 or US$2,700). Transaction fees for merchants are typically significantly lower than those for popular credit cards. It’s a desirable option for sellers.

About OTT Pay
OTT Pay is a leading end-to-end payment gateway that is redefining the payment industry. OTT Pay’s exclusive World of Payments™ solution integrates acceptance of popular international e-wallets streamlined with major debit and credit card brands. OTT Pay connects North American businesses with the tools to unlock growing ethnic markets by making it easier for their customers to pay. As one of the leading omnichannel payment facilitators, OTT Pay’s integrated suite of solutions encompasses POS Terminals, E-commerce, and Loyalty SaaS tools to make everyday business easier.