The Alibaba group is no stranger to the eCommerce scene. Well on track to serve 2 billion customers globally, the group has gone from strength to strength.
It’s no surprise then that Alibaba group came up with their own online payment system in Alipay. The suite of Chinese payment apps quickly grew to dominate a large portion of the market and is now being used across the world.
What is Alipay exactly, and how can it be used to send and receive money from China? Keep reading to find out.
What Is Alipay?
As we mentioned, Alipay was created by the Alibaba Group in 2003, and since then, it’s grown monumentally. If you’ve ever used apps like Venmo or Paypal, you’ll have seen a similar technology.
Alipay is primarily a payment facilitation app, allowing users to send and receive money easily without having to use cash. There are also features to hail a taxi, get a credit card and buy insurance. So it’s a natural choice for those who want to make International Payments work.
More than 1 billion Chinese citizens use it, so the potential market is incredibly appealing to retailers. In particular, the Alipay international transfer facility is making inroads into Europe and the US.
How Does Alipay Work?
Alipay maintains a digital wallet that is linked to you. You use this wallet for all transactions, whether that means sending or receiving.
In the background, Alipay works using the principle of Escrow. However, funds are held until both sides of the transaction are confirmed rather than being paid directly into an account when you hit send.
This approach to user security and transaction confirmation has made users far more likely to use Alipay. Nobody gets paid until all parties are happy with the sale. Once both parties have confirmed, money is deposited in the receiver’s account.
How Can I Send or Receive Money From China With Alipay?
Of all the payment methods in China, Alipay is the easiest to use. Once you sign up to receive payments via AliPay, customers can select this as a payment method. The app allows them to enter their pin, and you get paid. Simple.
On the flip side, if you wish to pay a merchant, simply load funds into your Alipay Wallet (starting from 100 yuan only) and then choose to pay via the app. If you’re using a desktop machine, you’ll need to scan a QR code to confirm the transaction using your cellphone.
If you’re a Chinese resident, all you need is your bank and ID cards to get set up. It’s a little harder as someone residing outside of China, but not terribly. Installing the App will give you a tutorial on how to get started.
Tap Into a Huge Market
It’s not an exaggeration to say that nobody can afford to ignore a 1 billion strong market. In fact, now that we’ve answered the question “What is Alipay?” it’s time to get started and set yourself up for success.
Getting set up can be complex, and it’s always easier to let professionals get you started.