Alipay is one of the largest mobile payment platforms in the world. Established in China in 2004 as a subsidiary of the Alibaba Group, Alipay functions primarily as a payment service provider, facilitating mobile transactions between customers and businesses on the Alipay app.

In recent years, Alipay has expanded its services beyond payment processing. The app now includes features such as utility bill payment portals, ticket booking tools, and personal wealth management services. Alipay integrates with a wide network of banks and financial institutions and allows users to initiate payments with facial recognition and QR codes.

Alipay has also expanded beyond China, partnering with local payment systems and financial institutions to support cross-border transactions and cater to Chinese tourists abroad – all while making the Alipay app internationally accessible. Alipay's growth reflects the popularity of digital payments and financial technology solutions in both domestic and international markets.

This guide will cover the key details that businesses should understand if they want to use Alipay as a payment method in China: fee structure, operational requirements, primary users and how to get started integrating Alipay into payment options.

What's in this article?

• How does Alipay work?
  
• Key features of Alipay for businesses
  
• Where is Alipay used?
  
• Who uses Alipay?
  
• Benefits of accepting Alipay for businesses
  
• Alipay security measures
  
• Working with Alipay: Business requirements and integration
  
• Alternatives to Alipay
  
• How Stripe Payments can help
  

How does Alipay work?

Alipay is a digital wallet and payment platform. It allows users to store their financial accounts or cards in a single centralised hub. Businesses integrate Alipay for online or in-store payments via QR codes. In addition to processing transactions, Alipay offers a comprehensive suite of services for individuals and businesses. Alipay has recently improved its cross-border e-commerce capabilities and its integration capabilities with other financial services, enabling it to offer deeper analytics tools and more sophisticated AI-driven marketing solutions. Customers appreciate the convenience of Alipay, which allows them to pay for purchases, transfer money and even manage utility bills from one app.

Alipay's key features for businesses include:

• Payment processing: Alipay allows businesses to accept payments from customers both at physical stores and online. In stores, payments are initiated with a QR code and completed from the customer's mobile phone using Alipay's digital wallet. Online, Alipay is integrated with the business's e-commerce platform and included as a payment option.

• Cross-border payments: Alipay's payment processing capabilities extend to cross-border transactions, providing currency conversion services and settling funds in the business's local currency. The time it takes for funds to be settled in merchant accounts can vary, and domestic transactions are settled faster – on average – than cross-border transactions.

• Escrow service: Alipay's escrow service holds payment until the buyer confirms they have received the goods they purchased. This step adds a layer of trust and security to transactions and is particularly useful in e-commerce.

• Alipay mini programs: Businesses can develop custom mini programs within the Alipay app to directly engage with customers, offer services, or sell products. With these additional services, Alipay functions as a "super app" where customers can rent bikes, book hotels, and more – without ever leaving the interface.

• Business services: In addition to facilitating payments, Alipay provides businesses with analytics and insights about customer behaviour and preferences. This can help businesses build targeted promotions and campaigns, and make informed decisions about their product offerings. Alipay also provides other services, such as loans and insurance.

Where is Alipay used?

Alipay is a leading digital payment platform that has seen its usage evolve and expand since its inception. Alipay has about one billion users in the Chinese market, with a substantial presence in several additional global markets. Alipay's usage reflects changing customer behaviours toward digital payments in addition to the business trends and regulatory landscapes of these markets. Regions where Alipay operates include:

China

• Market position
  Alipay is deeply integrated into the daily financial activities of Chinese customers. Digital payment methods have become the norm for online and offline transactions in China, and Alipay caters to this trend by supporting a variety of payment options. China's digital transformation has been driven by the country's high smartphone penetration rate, which reached almost 87% in 2025, and has facilitated a move away from cash. Alipay's emphasis on e-commerce has also contributed to its success: in 2020, China's retail e-commerce sector reached a total transaction value exceeding $2.2 trillion.

• Regulatory conditions
  China's regulatory environment has played a major role in the growth of fintech platforms such as Alipay. Policies such as the "Guiding Opinions on Promoting the Healthy Development of Internet Finance" (2015) have encouraged fintech innovation while taking a balanced approach to regulation. The regulatory landscape has also been characterised by concerns about data security and financial stability as these technologies emerge, as seen in the Personal Information Protection Law (2021) and the Cybersecurity Law (2017).

• Tour Card
  Alipay also has a feature for international visitors and tourists in mainland China called Tour Card, which allows non-residents to pay in local currency without a local bank account. The feature is widely accepted at retail, transportation and online services, as well as other locations such as street vendors and convenience stores.

Southeast Asia

• Market position
  In Southeast Asia, Alipay's expansion is closely linked to the region's growing digital economy and the influx of Chinese tourists. Countries such as Thailand and Singapore have witnessed a rise in Alipay usage propelled by their growing digital payment adoption rates. Alipay usage in these countries is not limited to tourists, but it also extends to local businesses and customers engaging in transactions with China.

• Regulatory conditions
  The regulatory landscape in Southeast Asia varies by country. Alipay has adapted to operate in compliance with Thailand's Payment Systems Act (2017) and Singapore's Payment Services Act (2019), among others.

Europe and North America

• Market position
  In Europe and North America, Alipay serves Chinese tourists and expatriates, an adaptation that reflects the need for businesses in these regions to provide diverse payment options. This trend is a response to the growing number of Chinese travellers, a figure which has been increasing steadily over the years. In 2024, for example, outbound Chinese travel surged 392%.

• Regulatory conditions
  The regulatory environment in Europe and North America is stricter than in Asian markets. Europe's General Data Protection Regulation (GDPR) (2016) sets a high standard for data protection, impacting the way businesses such as Alipay handle personal data. In the US, financial regulations are governed by a complex framework involving federal and state-level laws, such as the Bank Secrecy Act (1970) and various state money transmitter laws. Alipay's slower expansion in these regions reflects a strategic approach to navigating these rigorous regulatory landscapes. Even so, Alipay is accepted on more than 16,800 websites in the US, second only to China.

Who uses Alipay?

Alipay's user base is diverse and spans many business sectors and customer segments, including:

• E-commerce platforms: E-commerce platforms in China use Alipay extensively, as do similar platforms in regions with a large Chinese customer base (although to a lesser extent). Alipay is a primary payment method on Alibaba e-commerce websites such as Taobao and Tmall.

• Brick-and-mortar retailers: Alipay is widely accepted by physical retailers in China, ranging from large supermarkets to small local shops. The QR code payment system makes Alipay an easy option for both businesses and customers.

• Service providers: Service providers such as utility companies, telecommunications firms and public transportation entities accept Alipay in China. This allows customers to pay for services such as electricity, gas, phone bills and train and bus tickets through the app.

• Hospitality industry: Hotels, restaurants and tourist attractions often accept Alipay, both in China and in regions with large numbers of Chinese tourists, who are more likely to choose a familiar payment method while abroad.

• Small- and medium-sized enterprises (SMEs): SMEs use Alipay because of its low barrier to entry and its cost-effectiveness in handling transactions. Through built-in marketing and business management features, Alipay provides SMEs with a tool to manage sales and engage with customers.

• International businesses: Businesses that participate in cross-border trade with China use Alipay for its international payment solutions.

• Younger demographics: Alipay is particularly popular among younger, tech-savvy customers in China. This demographic is generally comfortable with digital technology and prefers the convenience of mobile payments over traditional methods.

• Travelers from China: Outside of China, Alipay is a preferred payment method among Chinese tourists, and it is accepted in more than 100 countries.

• US citizens: For US citizens who want to use Alipay, you need to download the app, register your phone number, verify your identity, and link your financial accounts. From there, you can use Alipay's QR code-based payment system at supporting businesses while in China or elsewhere. Note that some features are missing in the international version of Alipay, such as peer-to-peer payments.

Benefits of accepting Alipay for businesses

Businesses that accept Alipay can benefit from the following features:

• Appeal to Chinese market
  Alipay's vast user base, particularly in China, gives businesses a direct channel to a large and growing market. By integrating Alipay as a payment method, companies can tap into a ready pool of customers that include the local Chinese market and Chinese tourists traveling abroad.

• Streamlined international trade
  Alipay's ability to handle cross-border transactions is an important benefit for businesses engaging in international trade. Alipay manages currency conversions and compliance with different international financial regulations.

• Superior user experience
  Customers appreciate Alipay's user-friendly mobile design, as well as its quick and easy payment methods, such as QR-code scanning. These features are particularly important in retail sectors where quick service is valued.

• Enhanced customer trust
  Alipay's escrow service safeguards customer payments until product delivery is confirmed, boosting customer trust. This is very important in e-commerce scenarios and encourages first-time and repeat purchases.

• Detailed customer data
  Businesses that accept Alipay gain access to comprehensive analytics on customer behaviours and trends. This information can help businesses tailor product offerings, optimise marketing efforts, and make informed strategic decisions.

• Marketing opportunities
  Alipay provides sophisticated marketing tools that enable businesses to launch targeted campaigns within the platform, potentially increasing sales and boosting customer loyalty. Accepting Alipay can be its own marketing opportunity within the Chinese market and businesses should consider promoting this payment option in their marketing materials to attract interest from Chinese customers.

• Business-management tools
  With Alipay, businesses have access to a suite of financial tools, including short-term loans and insurance products. These resources can be important for managing cash flow, investing in growth initiatives and mitigating business risks.

• Efficient e-commerce integration
  Businesses can integrate Alipay into different e-commerce platforms, enabling streamlined checkout processes. This can help businesses save on cost and focus on their core offerings.

• Elevated brand perception
  By accepting a globally recognised payment method such as Alipay, businesses can improve their brand image. Offering Alipay positions the business as cutting edge and responsive to customer preferences.

Alipay costs and fees

Alipay's fee structure for businesses varies based on several factors, including the transaction type and the region where the transaction takes place. Alipay's basic fees are outlined below:

• Merchant transaction fee: Businesses are typically charged a fee of 0.6% of the transaction value when using Alipay​​.

• Withdrawal fee: When withdrawing over 20,000 Chinese renminbi (RMB), a 0.1% fee applies for customers.

• Overseas card payment fee: Alipay charges customers a transaction fee of 3% of the transaction value for using overseas credit cards. Transactions under 200 RMB are exempt from this fee.

Alipay security measures

• Encryption
  Alipay uses state-of-the-art encryption methods, specifically the AES-256 standard, which is among the most secure encryption methods available. During a transaction, this protocol encrypts sensitive details such as credit card information and personal data and transforms them into a complex code. This code is nearly impossible to decipher without the correct key, thereby shielding the data from unauthorised interception throughout its transmission to Alipay's servers.

• Real-time monitoring
  Alipay employs a sophisticated monitoring system equipped with machine learning capabilities. This system continuously scrutinises transactions, analysing patterns and behaviours to identify potential problems. Using artificial intelligence and complex algorithms that incorporate predictive analytics and behavioural analysis, Alipay's system can detect subtle anomalies that might indicate fraudulent activities. When this happens, the system can suspend the transaction immediately and initiate a detailed investigation.

• Rigorous user authentication
  Alipay uses comprehensive user-verification methods, including advanced biometric technologies, such as retina scans and voice recognition, alongside conventional password-based security.

• Secure payment gateway
  Alipay's highly secure payment gateway integrates easily with different types of e-commerce platforms, ensuring business transactions are conducted in an environment that is protected by its security protocols.

• Escrow service
  Alipay's escrow service enhances online transaction security by releasing funds to the seller only after the buyer confirms the receipt and quality of the product. This helps reduce incidents of fraud in e-commerce transactions.

• Customer support
  Alipay's highly trained customer support team quickly addresses security concerns and inquiries from users. The team also addresses fraud preemptively through user education on safe online practices and how to defend against online fraud.

• Regulatory compliance
  Alipay conforms to rigorous international financial standards and regulations such as the GDPR in Europe and the Payment Card Industry Data Security Standard (PCI DSS). This adherence guarantees that Alipay's security protocols are consistently in line with global legal requirements and industry norms.

• Audits and updates
  Alipay undergoes regular and extensive security audits, which are conducted by independent third-party firms, and updates its security infrastructure – a key defence mechanism against new types of security challenges – on a regular basis.

Working with Alipay: Business requirements and integration

Businesses that want to accept Alipay as a payment method must meet certain requirements, which vary depending on the location of the business and its chosen payment processing service. Integrating with Alipay opens up opportunities for businesses looking to expand their customer base, especially in the Chinese market. However, it requires careful attention to legal, technical and operational details.

To get started with Alipay, businesses should plan to have technical support available, especially during the initial phase of integrating Alipay into their payment system. They will also need to stay informed on any updates from Alipay and their chosen payment service provider on evolving regulations and requirements.

China-based businesses

China-based businesses must meet the following requirements to integrate Alipay as a payment option:

• Business registration: The business must be legally registered in China and possess all the necessary business licences and permits.

• Bank account: Businesses must have a Chinese bank account for settlements. Typically, Alipay transactions are settled in RMB, so a local bank account facilitates smoother financial operations.

• Alipay merchant account: Businesses must apply for an Alipay merchant account. This involves submitting business details such as legal documentation, tax information and proof of business operations.

• Alipay integration: Physical stores must integrate Alipay with existing point-of-sale (POS) systems, which might require technical assistance to generate Alipay QR codes for customer scanning. E-commerce platforms must integrate Alipay's payment gateway, which may also require technical assistance.

• Security compliance: Businesses must adhere to Alipay's Terms of Service, privacy policies and standards for customer data protection and transaction security. This requirement applies to both China-based and foreign businesses that use Alipay.

Businesses based outside China

Businesses based outside of China must meet the following requirements to integrate Alipay as a payment option:

• Local business registration: The business must be legally registered in its home country and have all the necessary documentation.

• International bank account: Businesses must have a bank account in their local country that can accept payments in multiple currencies as needed. Businesses should note that settlements might involve currency conversion fees, as Alipay will settle transactions in RMB.

• Transaction capability: In order to integrate Alipay into their systems, businesses outside China often need to partner with payment service providers, such as Stripe, that support Alipay transactions. E-commerce businesses must guarantee their online platforms can handle Alipay payments through the chosen payment gateway and that their website or app is compatible with Alipay's payment processes.

• Know your customer (KYC) compliance: Foreign businesses must comply with KYC regulations to accept Alipay. These regulations involve verifying the identity of their clients and assessing potential risks of illegal intentions in the business relationship.

• Customer support: Businesses accepting Alipay should consider providing customer support in Mandarin for enquiries relating to Alipay transactions.

Alternatives to Alipay

Businesses in Alipay's primary markets have many digital payment solutions to choose from. There are several digital wallets, in particular, that have similar features to Alipay and offer unique benefits such as access to a specific market or specific use case. The key alternatives to Alipay are outlined below:

• PayPal
  PayPal is a common payment method in North American and Europe that allows customers to link bank accounts or credit and debit cards to their account to send and receive money. PayPal features strong customer trust, and its feature set makes it a good option for cross-border payments.

• WeChat Pay
  WeChat Pay, which is integrated into China's largest social media platform, WeChat, may be Alipay's most direct competitor in China. WeChat Pay facilitates a range of transactions, including mobile payments, online shopping and money transfers. It's a social-first platform that dominates daily, offline and high-frequency payments, such as those made at street vendors and coffee shops. Widely accepted in China, WeChat Pay owes its popularity to its integration with a social platform, which makes it convenient for users to pay, shop, and socialise all in one app.

• UnionPay
  While known primarily for its card services, UnionPay also has a mobile payment solution called UnionPay QuickPass. It is widely accepted in China and internationally, and it offers services similar to Alipay, including mobile and QR code payments. UnionPay is a strong competitor to Alipay, and it is especially popular with consumers who prefer a platform that is also widely accepted outside of China.

• Tenpay
  Tenpay operates as part of Tencent's broader financial services and is another major player in China's digital payment market. While it's not as well known internationally as Alipay and WeChat Pay, Tenpay holds a substantial market share within China and has similar functionalities to Alipay such as online transactions, mobile payments and cross-border payments.

• JD Pay
  Run by JD.com, one of China's largest e-commerce platforms, JD Pay is a digital payment service that rivals Alipay in the online shopping sphere. Although JD Pay is used primarily within the JD environment, it can also be used by other online and offline businesses. Similar to Alipay, JD Pay facilitates payments via QR code payments and digital wallets.

• Meituan Pay
  Part of the Meituan-Dianping group, Meituan Pay is integrated into an app that's widely used for services such as restaurant bookings, movie tickets and hotel reservations. It offers a similar range of services as Alipay and is especially competitive in the lifestyle service industry.

• Baidu Wallet
  Offered by China's leading search engine Baidu, Baidu Wallet is a digital payment service that provides online and mobile payment services. While it does not have the same extensive user base as Alipay or WeChat Pay, it does offer comparable services, such as online transactions and mobile payments.

• KakaoPay
  KakaoPay is a notable alternative to Alipay in South Korea. Integrated with KakaoTalk, South Korea's leading messaging app, KakaoPay offers a user experience similar to Alipay and WeChat Pay, with features such as mobile payments, money transfers and bill payments.

• Paytm
  Paytm is a major player in India, where it has a significant user base. Paytm offers a range of similar services to Alipay, with features such as a digital wallet, online shopping capabilities and QR code payments.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business accept digital wallet payments online, in person and around the world.

Stripe Payments can help you:

• Optimise your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 100+ payment methods, including more than a dozen digital wallet payment methods and Link, a wallet built by Stripe.

• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.

• Unify payments in person and online: Easily track and reconcile digital wallet payments across online and in-person channels.

• Improve payments performance: Increase revenue with a range of customisable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorisation rates.

• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.

Learn more about how Stripe Payments can power your online and in-person payments or get started today.