Alipay for businesses in Singapore: A comprehensive guide

Alipay for businesses in Singapore: A comprehensive guide

Alipay is a globally leading digital payment platform, widely used in China and other parts of Asia, with over one billion active users. It offers services such as e-wallets, QR code payments, and payment methods. With the rise of Chinese tourists in Singapore, Alipay has become essential for businesses targeting this market.

While Alipay also offers money transfers services for individuals and businesses, allowing them to send money domestically and internationally, we’ll focus on the use of Alipay as a payment method in this guide. We’ll explore everything you need to know about accepting Alipay payments for your business in Singapore, including its key features, benefits, and safety. We’ll also introduce how you can enable Alipay as a payment method via Airwallex’s payment gateway, allowing you to reach Chinese consumers more easily.

What is Alipay?

Alipay is a mobile and online payment platform established under Alibaba Group. With a market share of almost 54%, it is the largest third-party payment provider in China¹. Globally, it serves over one billion users and 80 million merchants², offering a variety of services including digital wallets, mobile payments, and money transfers.

The payment method is gaining popularity among businesses in Singapore as it enables them to readily accept payments from both local and international customers. By integrating Alipay into their payment processing systems, Singapore retail stores and cross-border eCommerce businesses can attract a broader global clientele and accommodate diverse payment preferences, especially Chinese consumers who prefer using Alipay for transactions.

How can your business use Alipay in Singapore?

Various merchants in Singapore offer Alipay as a payment method for their customers. This includes both physical and online retailers, hotels, restaurants, and service providers such as ComfortDelGro Taxi. By utilising Alipay, businesses in Singapore can reduce the barrier for Chinese customers to purchase their products or services, thereby expanding their customer base and enhancing sales.

Here are some ways you can integrate Alipay into your business:

• In-store payment acceptance: Alipay offers a QR code payment solution that enables merchants to instantly collect payments. To facilitate cross-border transactions, Alipay partners with various e-wallets in Asia, such as Malaysia’s Touch ‘n Go, the Philippines’ GCash, and Thailand’s TrueMoney. This partnership allows merchants to accept payments from customers using these partner e-wallets. Customers can simply scan the merchant’s QR code and complete the transaction with their preferred e-wallet, eliminating the need for currency exchange.

• eCommerce payment acceptance: In addition to enabling in-store payments, Alipay provides a convenient payment solution for global eCommerce businesses. When a customer purchases on a merchant’s website using Alipay, the payment is deducted in real-time from the customer's Alipay account in CNY and settled to the merchant in their local currency.

• Cross-border payments and paying Chinese suppliers: Many Chinese suppliers, especially those selling on Alibaba, are already familiar with Alipay and accept it as a primary form of payment. If your business involves importing goods from China, you can use Alipay to pay your Chinese suppliers directly, eliminating the need for costly international SWIFT transfers.

Advantages and benefits of using Alipay

• Global reach: Alipay opens doors to a massive consumer market, especially from China, allowing businesses to tap into new demographics and increase their customer base globally.

• Multiple payment methods: Alipay supports various payment options, including QR code scanning, in-app payments, and online web payments, offering flexibility and convenience to both merchants and customers.

• Secure transactions: Using advanced security measures and encryption technologies, Alipay ensures that all transactions are safe, minimising the risk of fraud and enhancing consumer trust.

• Enhanced customer experience: Fast and efficient payment processing improves the customer journey, making it more likely for shoppers to return, improving your customer lifetime value.

• Marketing opportunities: Businesses can leverage Alipay’s AI-driven in-built features to offer targeted marketing promotions, such as in-store promotion codes and instant discounts at online checkout that will improve checkout conversion rates.

How to accept Alipay payment using the Airwallex payment gateway in Singapore

As a payment method, Alipay is widely used by Chinese customers and businesses. In Singapore, many businesses have started accepting Alipay payments to cater to the growing number of Chinese tourists and expats. 

If your business is looking to reach more Chinese consumers, you can add Alipay as a payment method on your Airwallex payment gateway. Airwallex offers an all-in-one financial platform for global businesses, helping them to get paid in 180+ countries and 160+ local payment methods, including Alipay. Using the Airwallex payment gateway, your business can eliminate costly FX fees with like-for-like settlement in 11 currencies – a feature that many popular payment gateways lack.

Adding Alipay as a payment method using the Airwallex payment gateway is straightforward. Follow these steps:

1. Sign Up for Airwallex: Create an Airwallex account here if you haven’t already. Take 5 minutes to submit the required business documents and Know Your Customer (KYC) information.

2. Complete the KYB process: You’re also required to complete the Know Your Business (KYB) process to verify the legitimacy of your business. You'll be asked to provide some basic financial information about your business, including estimates of the average transaction size and monthly transaction volume.

3. Set up Alipay as your accepted payment method: Once you've passed the KYB process, you can start accepting customer payments with your Airwallex account. Airwallex supports various local payment methods including Alipay, which can be added via native API or eCommerce plug-ins such as WooCommerce and Magento. Choose the set-up method that best suits your needs and you're good to go.

Features of Airwallex payment gateway:

• Like-for-like settlement in 10+ currencies: When customers make payments, their funds can be directly settled into your Airwallex business account in the same currency. You can hold these funds in your account and make payouts in the same currency, avoiding forced currency conversions and unfavourable FX rates.

• Accepts 160+ local payment methods: Airwallex allows businesses to accept payments from customers around the world, supporting 160+ local payment methods, including Alipay and WeChat Pay. This allows you to provide a variety of payment options and effortlessly accept payments from customers with different preferences.

• Accepts payments in 180+ global currencies: The ability to accept multi-currency payments allows customers to pay in their preferred currency, reducing cart abandonment. 

• Flexible integrations: Airwallex offers customizable or out-of-the-box payment gateway solutions for businesses. SMEs can use no-code plugins for eCommerce or set up a hosted payment page, while businesses with more developmental resources can build end-to-end solutions via custom APIs. If you don't have an eCommerce website yet, you can even generate payment links with Airwallex to start collecting payments.

• Payment security: Airwallex (Singapore) Pte. Ltd. is a licensed Major Payment Institution in Singapore that adheres to strict security protocols and regulations, including PCI DSS, SOC1, and SOC2 compliance, ensuring the safety and integrity of all transactions.

Is Alipay safe and secure?

Contrary to concerns, Alipay strictly adheres to local and international regulatory standards, including its Major Payment Institution licence from the Monetary Authority of Singapore (MAS) in Singapore. Moreover, by offering 3D Secure tools for transaction validation and monitoring fraud, Alipay ensures a safe payment method for its customers.³

Similarly, Airwallex (Singapore) Pte. Ltd. is licensed in Singapore as a Major Payment Institution and is regulated by the Monetary Authority of Singapore (License No. PS20200541). Under Singapore law, Airwallex must implement safeguarding measures to protect customers' funds, ensuring they remain separate from the company's operational funds. Customers' deposits are held in a client-segregated trust account, inaccessible to Airwallex's creditors, banks, or third parties. This guarantees that funds are available whenever customers wish to withdraw or make payouts from their Airwallex account.

How to top up Alipay in Singapore

If your business works with Chinese suppliers, many of them prefer payments via Alipay due to its widespread use and reliability in China. By opening an Alipay account, you can conveniently top up your account through cash, cards, or bank transfer, and send funds to settle payments with your suppliers.⁴ This method ensures timely and secure transactions while simplifying your payment processes.

To top up your Alipay account with credit or debit cards:

1. Open the Alipay app.

2. Click “Top Up”.

3. Select “Credit card” or "Debit card" as your top-up method.

4. Enter your card details.

5. Enter the amount you want to top up.

6. Click “Confirm”.

Alipay vs WeChat Pay: Comparison

Alipay and WeChat Pay are the two most popular mobile payment systems in China. By 2024, Alipay is projected to reach 1.265 billion users, while WeChat Pay is expected to have 1.055 billion users in the country. Together, they will account for over 90% of Chinese mobile payments⁵. 

Let’s take a look at the table below for a more detailed comparison between the two and Airwallex.

As an e-wallet and payment method, Alipay enables online and in-store payment acceptance for Singapore businesses, primarily catering to Chinese consumers. It also supports cross-border transactions, converting customer payments from RMB and settling funds in the business's local currency. Similarly, WeChat supports quick and easy transactions, ensuring a smooth checkout experience through its e-wallet features, with a particular emphasis on Chinese social commerce.

In comparison, Airwallex goes beyond just providing payment gateway services for businesses to accept global customer payments. It also offers global business accounts that support over 23+ currencies, allowing merchants to receive, hold, and pay out funds from a single multi-currency account, thereby avoiding forced currency conversions and enjoying cost savings through like-for-like settlements. Airwallex also provides businesses with multi-currency virtual Visa cards, allowing them to simplify their cross-border transactions and benefit from 0% international transaction fees — another advantage not offered by Alipay or WeChat Pay.

Conclusion

As one of the most widely accepted digital payment platforms in China, Alipay offers global businesses access to a vast customer base of Chinese consumers with localized payment solutions. Nonetheless, it comes with limitations such as forced currency conversions when receiving payments from international customers in other countries.

In contrast, the Airwallex payment gateway integrates Alipay as a payment method and provides global business accounts, enabling merchants to receive, hold, and pay out in 23+ currencies. This helps manage funds efficiently and avoids unwanted currency conversions. Sign up for your free Airwallex account today.

Frequently asked questions

1. Are there any limits on the amount of money I can transfer using Alipay?

Yes, Alipay does impose limits on the amount of money that can be transferred. These limits vary depending on the user’s verification status and the type of account they hold. Unverified users face much lower limits, which is intended to enhance security by mitigating risks associated with unverified transactions. For Airwallex, the maximum transfer limit typically varies based on the transfer method, such as bank transfer, SWIFT, or other local payment options.

2. Can I use Alipay without a Chinese bank account?

Yes, you can use Alipay without a Chinese bank account. Alipay allows overseas users to sign up and link their Alipay account to an international bank card. However, the services available and the transaction limits might differ compared to users with a Chinese bank account, so it's important to review the specific terms and conditions for international users.

3. What should I do if my Alipay transaction fails?

You should contact Alipay's customer support for assistance by emailing [email protected]. Provide them with details of the transaction attempt, including any error messages received, to help them diagnose and resolve the issue efficiently.

*Note: This publication does not constitute legal, tax, or professional advice from Airwallex nor substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency.

Sources & references

1. https://www.statista.com/statistics/426679/china-leading-third-party-online-payment-providers/

2. https://www.antgroup.com/en/business-development

3. https://global.alipay.com/docs/ac/dispute/fraud?pageVersion=2

4. https://miniprogram.alipay.com/docs-alipayconnect/miniprogram_alipayconnect/platform/manage-miniprogram-partner

5. https://www.statista.com/statistics/1271130/mobile-wallet-user-forecast-in-china/