Ant Group’s Cross-Border Merchant Networks Drive Revival in SEA’s Tourism Spending During Chinese New Year Break

• Alipay overseas transactions surpasses 2019 numbers
• According to data from Alipay+, the Philippines is the 8th most popular destination globally for Alipay+ users, with South Korea, Hong Kong, and Malaysia as the top 3 markets
• Other international e-wallets supported by Alipay+ cross-border mobile payment solutions, as well as international card-enabled Alipay accounts see inbound travel surge

Information provided by Ant Group indicates a significant resurgence in consumer spending, particularly in cross-border tourism, during the first Chinese New Year (CNY) travel season following the Covid-19 pandemic, signaling a strong rebound towards normalcy.

Robust recovery, diversified destinations, and scenarios for Chinese tourists in the region are made possible by Alipay+

Utilizing Alipay+ cross-border mobile payment technology solutions, travelers can seamlessly pay for goods, food and beverage, recreation, and entertainment at over 8 million merchants spanning across more than 70 countries and regions, all within their familiar home app, eliminating the need for currency exchange or carrying cash. Additionally, they can benefit from in-app instant tax refunds and access transparent and competitive exchange rates. In the Philippines, Alipay+ is actively expanding its merchant coverage, particularly in Manila and Cebu, the country’s two most popular destinations.

A global campaign has been underway on the Alipay+ merchant network since December 2023 to attract outbound travel for Chinese tourists. During the Chinese New Year holiday week from February 9th to 12th, Alipay users overseas conducted transactions surpassing those of 2019 by 7 percent, with consumer spending rebounding to 82 percent of the 2019 level, or 2.4 times that of 2023. Spending by Chinese tourists in the Philippines via Alipay saw a notable 50 percent increase compared to the previous year, with shopping emerging as the most popular category. Apart from travelers from mainland China, those from South Korea, Hong Kong, and Malaysia emerged as the top three biggest spenders in the Philippines.

The strengthening socio-economic ties between Hong Kong SAR, Macao SAR, and mainland China, along with new visa-free policies from major Southeast Asian destinations and recovering international flight capacities, have facilitated the surge in cross-border travel. Top destinations for Chinese travelers based on their Alipay spending include Hong Kong SAR, Japan, Macao SAR, Thailand, Malaysia, Singapore, South Korea, France, Australia, and Canada. Thailand, Malaysia, and Singapore collectively witnessed a 7.5 percent increase over 2019 and a remarkable 580 percent leap over 2023, with Thailand leading in total volume and Malaysia exhibiting the largest increase.

Beyond traditional activities like shopping and sightseeing, Chinese tourists are increasingly seeking immersive and unique local experiences. During the CNY week, Chinese tourists globally spent 70 percent more on food and beverage compared to 2019, exploring not just downtown hotspots but also off-the-beaten-path local gems. The volume of in-town transportation has surged due to the trend of “traveling local.” Alipay users in various destinations now have access to a range of transportation options, including rail, taxi, rideshare, car rental, bus, subway, and scooter-share, all conveniently accessible from their familiar app. The cost per ride for Alipay travelers on any vehicle has dropped by 60 percent compared to 2019, contributing to a lighter carbon footprint and providing a boost to local SMEs on the public transport network, which now garner a share of international tourist revenue.

Promoting cross-border travel among Alipay+ partner e-wallets and bank app

The Chinese New Year is celebrated widely across Asian communities, marking a significant cultural occasion. In 2023, with new partnerships and increased travel, total cross-border spending on the region’s leading e-wallets powered by Alipay+ surged by 252 percent year-on-year, accompanied by a remarkable 304 percent increase in daily average transactions. Among the top 5 most popular destinations for Alipay+ consumers, besides mainland China, were Japan, South Korea, Macao SAR, Thailand, and Singapore, with the Philippines ranking as the 8th most popular destination globally.

Douglas Feagin, Senior Vice President of Ant Group and Head of Alipay+, noted, “With its widespread adoption across age and income groups, mobile payment is increasingly becoming a vital driver of both local and cross-border commerce in Asia and beyond.” He further emphasized the anticipation of expanding partnerships with industry leaders in the payment sector, national tourist agencies, and merchants in 2024 to foster further growth.

Facilitated by Alipay+, Alipay from mainland China has been embraced by local merchants in the Philippines since 2017. Additionally, more e-wallets were introduced locally last year, including AlipayHK from Hong Kong SAR, Kakao Pay from South Korea, and Touch ‘n Go eWallet from Malaysia. Together, these e-wallets offer enhanced convenience for tourists while opening up new growth avenues for local merchants.

The introduction of these new e-wallets ahead of the peak travel season, with an anticipated 8.21 million inbound tourists projected for the Philippines this year, ensures a seamless payment experience for travelers while simultaneously creating more opportunities for growth among local businesses.