Alipay payment facilities are coming to more than 25,000 new retailers across Australia and New Zealand, under a partnership agreement with Australian payments provider Smartpay.
Smartpay shares soared just under 40 per cent on the ASX today after it announced a deal to allow consumers to use Alipay Mobile Wallets to conduct transactions at Smartpay terminals.
The company’s stock gained 5.5 cents to finish trade at 19.5 cents.
The partnership will allow more than 25,000 merchants with Smartpay terminals to tap into an estimated $11 billion in Chinese tourist spending across Australia and New Zealand.
Alipay, which is owned by Ant Financial, part of the powerful retail conglomerate Alibaba Group, has more than 520 million active users in China.
Under terms of the deal, Smartpay will earn a share of total transaction value by directly acquiring Alipay’s transactions.
Smartpay managing director Bradley Gerdis said innovation was a key factor in the company’s strategy of becoming a leader financial transaction acquirer in Australia and New Zealand.
“This partnership with Alipay will give us a competitive point of difference in important market segments, particularly tourism and hospitality,” Mr Gerdis said.
Alipay country manager Australia and New Zealand George Lawson said along with tourist spending, the Alipay payment facilities would allow retailers to further tap into the Chinese student market by offering their preferred method of payment.
“Alipay is not only a payment capability used by tourists but also by thousands of students and migrants,” Mr Lawson said.
“These are very lucrative markets that are rapidly expanding.”