Data from Alipay+ and PayNet shows a robust rebound of consumer spending during the first back-to-normal Chinese New Year (CNY) travel season after the Covid-19 pandemic, especially in cross-border tourism in Malaysia.
Growing Alipay+ ecosystem in Malaysia to welcome tourists
Since November 2023, Alipay+ has been accepted by more than 1.9 million DuitNow QR merchants, giving tourists greater convenience to pay via their home e-wallets no matter where in the country they visit. Alipay+ has also partnered with top merchants in Malaysia across multiple tourism-focused industries in retail, F&B and everyday conveniences, including 7-Eleven, Watsons, myNEWS, KK Supermart, Sephora, Uniqlo, Eraman Duty Free, DurainBB, and Tealive, to introduce exclusive CNY campaigns.
As a result, for CNY 2024, data from Alipay+ shows that Malaysia is the fifth most popular destination globally for Chinese tourists, with spending in Malaysia in the first seven days of CNY is two times that of CNY 2019 and more than ten times compared to 2023.
“With its use spreading across age and income groups, mobile payment is increasingly becoming an important promoter of local and cross-border commerce in Asia and beyond,” said Dr Cherry Huang, General Manager of Alipay+ Offline Merchant Services, Ant International. “Particularly through our partnership with PayNet, we have seen a significant increase in Alipay+ transactions on the DuitNow QR network, which shows that it not only provides great convenience to tourists but also brings more opportunities to local businesses, both big and small. We look forward to strengthening our collaborations with local partners to contribute to the vibrant tourism sector in Malaysia.”
Enabled via Alipay+, 13 international e-wallets and bank apps can now be used in Malaysia: Alipay (Chinese mainland), AlipayHK (Hong Kong SAR, China), Kakao Pay, Naver Pay and Toss Pay (South Korea), Changi Pay and OCBC Digital (Singapore), GCash and HelloMoney by AUB (Philippines), Hipay (Mongolia), MPay (Macao SAR, China), TrueMoney (Thailand) and Tinaba (Italy).
The addition of new e-wallets ahead of the peak travel season provides added convenience to tourists while bringing more growth opportunities to local merchants. Besides Chinese tourists, Malaysia ranks as the sixth most popular destination amongst other Asian tourists. Via transactions from Alipay+ payment partner apps, tourists from Hong Kong SAR, the Philippines and Thailand are the top spenders in Malaysia, aside from tourists from the Chinese mainland.
Additionally, in November 2023, Alipay+ and PayNet enabled travellers with 8 Alipay+ supported e-wallets to make QR payments seamlessly at DuitNow QR merchants’ touchpoints across Malaysia. In the four-month period since launch, Alipay+ has contributed significantly to inbound cross-border QR transactions on DuitNow QR. Compared to December 2023, in February 2024, the number of average daily transactions via Alipay+ on DuitNow QR has increased by 2.5 times, while spending via Alipay+ partner users at DuitNow QR merchants has also increased 2.5 times.
Gary Yeoh, Chief Commercial Officer of PayNet, expressed pride in this collaborative initiative, “As the national payments network and a pivotal infrastructure for Malaysia, we are immensely proud to be part of this transformative journey with Alipay+. This partnership, exemplifying how strategic collaborations can drive economic growth and enhance the tourism experience, has facilitated easy payment for international visitors and open up a world of opportunities for local merchants,” he said.
“As we mark 50 years of strategic partnership between Malaysia and China, various initiatives have been introduced to promote tourism in Malaysia. These include the announcement of visa-free travel and ongoing discussions about establishing direct flights between smaller provinces in China and Malaysia. With the government actively working to boost tourism, particularly in preparation for Visit Malaysia 2026, our focus remains on enhancing travellers’ cashless experiences. This initiative aims to ensure visitors can fully enjoy their stay in a nation that embraces digital transformation. Looking ahead, PayNet is committed to innovating and expanding our services to support the dynamic needs of tourists and merchants alike, reinforcing Malaysia’s position as a top-tier global destination,” he added.
Robust recovery, diversified destinations and scenarios for outbound Chinese tourists using Alipay
Hong Kong SAR, Japan, Macao SAR, Thailand, Malaysia, Singapore, South Korea, France, Australia and Canada are the top destinations for Chinese travellers by their Alipay spending. Thailand, Malaysia and Singapore combined saw a 7.5% increase over 2019 and a 580% leap over 2023, with Thailand leading in total volume and Malaysia showing the most significant growth. New visa-free policies from major Southeast Asia destinations, including Malaysia, are critical enablers of the cross-border travel boom.
A global campaign to attract Chinese tourists has been in full swing on the Alipay+ merchant network since December 2023. In the CNY holiday week between February 9th and 12th, the number of transactions made by Alipay users overseas surpassed 2019 by 7%, while consumer spending recovered to 82% of the 2019 level, or 2.4 times that of 2023.
In addition to a more significant geographical footprint, the Chinese globe-trotter is expanding her interest from traditional activities like shopping and visiting major tourist sites to a more immersive and unique local experience. Globally, in the CNY week, Chinese tourists spent 70% more on food and beverage than in 2019, venturing from downtown hotspots to out-of-the-way local treasures.
Promoting outbound travel among Alipay+ partner e-wallets and bank apps
Chinese New Year is widely celebrated across Asian communities. With new partnerships in 2023 and increased travel, total cross-border spending on the region’s leading e-wallets powered by Alipay+ increased by 252% year-on-year. Daily average transactions increased by 304%. Japan, South Korea, Macao SAR, Thailand and Singapore are the top 5 most popular destinations for Alipay+ consumers besides the Chinese mainland.
International e-wallets and cards-enabled Alipay accounts in the Chinese mainland saw multi-fold expansion. During CNY 2024, international travellers to China spent 500% more on their international card-enabled Alipay accounts at merchants in the Chinese mainland compared to 2023. Chinese restaurants, tourist attractions and public transportation are the most popular use cases for international visitors travelling in China and experiencing the festival. Since September 2023, Alipay + has supported ten leading e-wallets and payment apps in Asia, including Touch ‘n Go eWallet, to serve their roaming users across Alipay’s 80-million-strong merchant network in China.
