Alipay drives evolution of contactless payments in China with new tap-and-pay service

Alipay, China's leading mobile payment service provider, has launched a new tap-and-pay function that it expects will streamline the checkout process for merchants, while offering consumers a simplified experience compatible with both Android handsets and Apple's iPhones.

Ant Group-operated Alipay, which helped popularise the QR code-based scan-and-pay feature in the country, on Monday introduced its Tap! function that enables users to complete payment by tapping their smartphone on a merchant's USB add-on at the cash register. Fintech giant Ant Group is an affiliate of Alibaba Group Holding, which owns the South China Morning Post.

The tap-and-pay service, which is being rolled out in major cities across mainland China, was designed to "expedite in-store mobile payments", according to Alipay.

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This initiative by Alipay marks its latest effort to shape the evolution of contactless payments nationwide, years after Samsung Electronics, Google and Apple introduced their own tap-and-pay functions overseas.

Alipay, which helped popularise the QR code-based scan-and-pay feature used by merchants across China, said its new tap-and-pay function was designed to streamline the checkout process in stores. Photo: Shutterstock alt=Alipay, which helped popularise the QR code-based scan-and-pay feature used by merchants across China, said its new tap-and-pay function was designed to streamline the checkout process in stores. Photo: Shutterstock>

Samsung Pay, launched in 2015, lets users make payments via the Samsung Wallet app downloaded on Samsung-produced devices. Google Pay, formerly known as Android Pay in 2015, allows users to make contactless purchases on Android smartphones, tablets and smartwatches.

Apple introduced its own contactless payment feature, Tap to Pay on iPhone, in 2022. It allows merchants to securely accept Apple Pay and other contactless payments by using an iPhone and a partner-enabled iOS app.

Tap-and-pay functions are supported by Near-Field Communication (NFC) technology, which allows users to make secure transactions and exchange digital content with a tap of a smart device over a distance of 4 centimetres or less.

Alipay, however, said its Tap! function is different from the NFC payment methods of Apple Pay, Samsung Pay and Google Pay, which function via a so-called card emulation mode. Alipay's tap-and-pay service turns a smartphone into an NFC tag reader, replacing a few steps in a typical QR code-based payment scanning process with a simple tap.

An Alipay sign outside Ant Group's office building in Shanghai. Photo: Bloomberg alt=An Alipay sign outside Ant Group's office building in Shanghai. Photo: Bloomberg>

Alipay's Tap! service is currently available for more than 2,300 brands and merchants in major mainland cities including Shanghai, Chengdu, Wuhan and Hangzhou. Merchants using the service include the 7-Eleven convenience store chain and stores at Jing'an Joy City, a major shopping centre in Shanghai, according to Chinese media reports on Tuesday.

The USB add-ons for Alipay's Tap! that merchants use can also support traditional scan-and-pay services - including those of WeChat Pay, Meituan Pay and QuickPass - through a built-in camera.

In the third quarter of 2023, Alipay recorded 118.2 trillion yuan (US$16.25 trillion) in total transactions, followed by WeChat Pay's 67.8 trillion yuan, according to online database Mpaypass. It said Alipay and WeChat Pay accounted for a combined share of more than 94 per cent in China's mobile payments market during that period.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.

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