Skift Take
In a world that’s rapidly going cashless, mobile payments are transforming travel, with Asia leading the charge while the technology spreads globally.
The rebound of global travel in 2024 has been accompanied by the demand for seamless, cashless transactions. Alipay+, Ant International’s cross-border mobile payment and digitalization service, has seen its transaction volumes triple this year.
Talking 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 have also changed drastically after the pandemic. As use of physical cash went down, mobile wallets and QR code payments became more popular — especially in Asia. Alipay+ launched in 2020 to capitalize on this trend, allowing these travelers to use their local payment apps in foreign countries.
From Local to Global
Talking about the evolution, Feagin said, “Before, these apps were only for local use. Today, millions of users can enjoy the same convenience in global destinations, and this is driving the adoption.”
This shift is largely 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 the familiar payment systems,” according to Feagin.
As of October 2024, Alipay+ has more than 30 payment partners, including leading e-wallets and bank apps from 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 like Latin America, the Middle East, and Europe have also been adopting mobile wallets. Examples include Italy’s Tinaba and Europe’s Bluecode, an open QR code payment scheme.
“Through our sponsorship with Union of European Football Associations (UEFA) this summer, we stepped up merchant engagement and campaigns pre and during the championship period, and saw a good increase in transactions and travelers using their Alipay+-supported payment app while in Europe,” he said.
UEFA host cities like 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 global payment solutions and digital wallet partner. “This is to jointly excite the club’s Asia Pacific fanbase, while connecting more European merchants to Asian travelers,” according to Feagin.
On Friday, Alipay+ announced that Italian fintech app Tinaba has become the first European fintech to integrate Alipay+ Mini Program solution.
McKinsey & Company estimates that Asia’s digital payments will reach 65% of total payments in 2024 (versus an average of 52% globally).
The Focus on Local Experiences
Spending on Alipay+ also surfaces travel trends.
In countries like Singapore, South Korea, and Malaysia, Alipay+ has seen a surge in transactions at small, local vendors, which according to Feagin helps empower local communities and cultures.
“Our priority is on expanding merchant coverage so that travelers can make mobile payments wherever they are, whether it’s a shopping mall, a hawker center or a street market,” he said.
He believes that this can play a significant role in fostering this sustainability by driving tourism to lesser-known areas. Through partnerships with national QR code schemes, travelers can now use digital payments in smaller cities and rural regions, which can help boost the local economy and promote inclusive growth.
“The roll out of Alipay+ coverage, even via national QR, may be staggered. But our focus is to continually onboard these acquirers and merchants, and we’re making good progress,” he said.
Earlier this year, Pelago, the travel experiences arm of Singapore Airlines Group, announced a partnership with Primer, a global payments-infrastructure provider.
Shaping Travel’s Future
As digital payments become more integrated into the travel experience, they’re evolving beyond just transactions.
Alipay+ has gone from providing cross-border mobile payments to include destination marketing via A+Rewards and digital lifestyle services, including in-app tax refunds and transportation.
In Thailand, for example, Alipay+ collaborated with the Tourism Authority of Thailand to launch Alipay+ D-hub, a customizable in-app mini program promoting lesser-known destinations directly within the Alipay app for Chinese tourists, Thailand’s biggest source market. Feagin said it would ultimately be rolled out to other Alipay+ partners.
The in-app mini program features essential travel and cultural information, local merchants’ recommendations, and city and province guides of Thai destinations
This initiative has successfully driven tourism to lesser-known destinations like Rayong province, Phra Nakhon Si Ayutthaya and Hai Yat, according to Feagin.
“Payments is just the first step. With the rise of mobile payments, we’re unlocking new opportunities between consumers and merchants,” Feagin explained.
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