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In a world that is rapidly becoming cashless, mobile payments are transforming travel, and while the technology is gaining traction globally, Asia is leading the way.
Peden Doma Butia
A global travel recovery in 2024 will be accompanied by a demand for seamless cashless transactions. Alipay+, Ant International’s cross-border mobile payment and digitization service, has seen its transaction volume triple this year.
Douglas Feagin, president of Ant International, speaks with Skift to find out what’s driving this adoption and how it’s shaping the future of travel.
Post-pandemic, consumer behavior toward payments has also changed significantly. As the use of physical cash declines, mobile wallets and QR code payments have grown in popularity, especially in Asia. Alipay+ was launched in 2020 to capitalize on this trend, allowing these travelers to use local payment apps while abroad.
From local to global
Regarding evolution, Feagin says: “Previously, these apps were only used locally. Now, millions of users can enjoy the same convenience in destinations around the world, driving adoption.”
This change is primarily driven by three factors: simplicity, trust, and transparency. “Travelers no longer have to worry about exchanging currencies or downloading additional apps; they can rely on the payment systems they are familiar with,” Feagin says.
As of October 2024, Alipay+ has over 30 payment partners, including major e-wallets and banking apps in Asia and beyond, and 1.6 billion consumers, with over 90 million consumers and customers in 66 markets. We connect our affiliate stores.
It’s no longer just an Asian story
Interestingly, Feagin said that while Asia is at the forefront of mobile payment adoption, the technology is gaining traction globally.
Mobile wallets are also being introduced in regions such as Latin America, the Middle East, and Europe. Examples include Italy’s Tinaba and Europe’s Bluecode, an open QR code payment scheme.
“This summer, through our sponsorship with the Union of European Football Associations (UEFA), we will increase our engagement and campaigns with our merchants before and during the Championship period, allowing us to increase transactions and travel using Alipay+-enabled payment apps while in Europe.” “We’ve seen a significant increase in the number of people,” he said.
According to Alipay+, UEFA host cities such as Berlin and Munich saw the biggest increase in Alipay+ transactions.
Ant International recently announced a three-year strategic partnership with Tottenham Hotspurs as their official global payments solution and digital wallet partner. “This is to jointly excite the club’s fan base in the Asia-Pacific region, while connecting more European franchisees with Asian travelers,” Feagin said.
On Friday, Alipay+ announced that Italian fintech app Tinaba has become the first European fintech to integrate the Alipay+ Mini Program solution.
McKinsey & Company predicts that digital payments in Asia will reach 65% of total payments by 2024 (versus the global average of 52%).
Focus on local experiences
Spending on Alipay+ also highlights travel trends.
Countries like Singapore, South Korea and Malaysia have seen a surge in Alipay+ transactions with small local vendors, which Feagin says is helping to empower local communities and cultures.
“Our priority is to expand our merchant reach so that travelers can make mobile payments wherever they are, including shopping malls, hawker centers and street markets,” he said.
He believes this can play an important role in promoting this sustainability by promoting tourism to lesser-known areas. Through our partnership with a national QR code scheme, travelers can now take advantage of digital payments in smaller cities and rural areas, helping to boost local economies and foster inclusive growth.
“The rollout of Alipay+ is likely to be gradual, even via nationwide QR. However, our focus is to continue to engage these acquirers and sellers. “It’s going well,” 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 the future of travel
As digital payments become more integrated into the travel experience, they are evolving beyond mere transactions.
Alipay+ has expanded from offering cross-border mobile payments to include destination marketing through A+Rewards and digital lifestyle services such as in-app tax refunds and transportation.
For example, in Thailand, Alipay+ launched Alipay+ D-hub in collaboration with the Tourism Authority of Thailand. This is a customizable in-app mini program that promotes lesser-known destinations directly within the Alipay app for Chinese tourists, Thailand’s largest source market. Fegin said it will eventually be rolled out to other Alipay+ partners.
In-app mini programs include important travel and cultural information, local business recommendations, and guides to destination cities and provinces in Thailand.
Mr Feegin said the initiative had succeeded in attracting tourists to lesser-known destinations such as Rayong province, Phra Nakhon Si Ayutthaya and Hyatt.
“Payment is just the first step. With the rise of mobile payments, we are creating new opportunities between consumers and merchants,” Feagin explained.
