Alipay sets out to conquer small European traders

November 14, 2019

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It will be necessary to count on Alipay in Europe. Like Alibaba, its parent company, which is attracting more and more Western brands and will open a first logistics site in Belgium in 2021, or AliExpress, which has recently opened a store in Madrid. The company Ant Financial, which publishes Alipay, has stated its ambitions on the Old Continent at the event Alipay Partners Global Summit, which was held this Thursday, November 14 in London.

Attract 10 million SMEs in 5 years

The company has announced its goal to support 10 million small and medium-sized businesses in Europe over the next five years. A realizable goal "thanks to its innovative technology that allows merchants to offer their services and transact with more than 2 billion potential customers from all over the world", exposes the Chinese company to its partners and European customers gathered during this day.

In concrete terms, Alipay continues to position itself as a facilitator of purchases from merchants by tourists from Asia, particularly China. "Our innovative solutions are there to help European merchants better serve the growing number of tourists, as well as e-consumers around the world who make purchases in Europe", summarizes Eric Jing, CEO of Ant Financial Group.To achieve this, the company relies first on its partners.Our goal is to improve the way individuals and businesses conduct their transactions and payments, building on the strength of our partnerships", adds Eric Jing.

1.2 billion users

"Merchants from all over Europe will be able to increase attendance and spending by tourists from all over Asia in their shops", says the company, potentialities difficult to estimate: Alipay now has more than 1.2 billion users thanks to its partnerships with local digital portfolios in South Korea, Thailand, Malaysia, the Philippines , in Indonesia, India, Bangladesh and Pakistan.

Chinese society has also announced a collaboration "expanded"With the payment and transaction services company Worldline, its partner since 2016, which will work for the first time with its Asian partners, the European company will launch in 2020 a software for advanced sales aimed at mobility, which will be compatible with purchases made via the Alipay QR Code.

Franprix, Maje and Etam said yes

In Europe, where Alipay says he has "a few tens of thousands of shops"Already using its solution, especially in France, the first destination for Chinese tourists, Alipay's strategy is clear.In France, the deployment of its solution in the Franprix store network – more than 800 stores – has was started last October and the company has also partnered with major local banking players – La Banque Postale, BPCE, BNP Paribas or Bank Edel – to increase the number of merchants accepting Alipay.

The company has for the moment conquered department stores, luxury players, but also premium brands (Sandro, Maje) or more accessible as those of the Etam group. "One of our areas of development is the deployment to local businesses"says Jean-Cyrille Girardin, director of Alipay's partnerships in France, but many sectors such as transport (taxis, VTC) and catering are still far from joining the movement."The brakes on the deployment of Alipay in Europe are essentially technological", says Jean-Cyrille Girardin.

Nesting tourism and retail

Another aspect of this support strategy is In App, Alipay's "mini-programs" solution. Launched in July 2018 in response to WeChat's mini-apps, it enables independent developers and airport-based companies to create "lite apps" and offer personalized recommendations to tourists. Example with the Hong Kong International Airport, whose mini-program allows you to make your Duty Free online purchases before arriving at the airport and collect them 90 minutes after the order.

In App allows developers to integrate multiple services in their mini-program: flight information, tips for transfer and arrival, instant messaging. The user can also book a means of transport or order food. And new features are coming in, such as the possibility for mini-programs to offer electronic coupons and Alipay benefits.

Linked to Fliggy, Alibaba's online travel platform, In App offers offers before a traveler leaves. This includes services such as booking a taxi, a hotel … but also the purchase of cinema seats, the payment of bills, and even making appointments with a doctor, or even the purchase wealth management products directly from the app.

An everyday application positioning

This strategy reflects the evolution of Alipay since its creation in 2004. Originally conceived as a payment solution, the platform has gradually evolved into a service offering. A very visible dimension on the consumer side, but also from the point of view of companies, which can now count on both technical and marketing support. "Payment is no longer just the final step of the transaction. It's the way to engage and retain"Eric Jing recalls: And by multiplying the points of contact with users in their daily lives, the Chinese giant provides brands, retailers and other players in its ecosystem billions of data on their preferences, their habits, and of course their purchases.

Valuable information in China, but also in Europe where the global group hopes to establish its leadership. "Europe is the most important continent", says Angel Zhao, President of Alibaba Global Business Group, closing the event Connecting China to Europe and taking up business opportunities, a possible bet on the occasion of the Golden Week in October (Holiday week celebrating Chinese National Day), Chinese tourists using Alipay spent 1,273 euros per person on average in French stores.

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