Alibaba Group launches in Russia of its own payment service Alipay, one of the largest such instruments of transactions in the world. This was stated by the representative of the company.
Chinese payments on $1.7 trillion
Payment service Alipay (through Ant Financial Services Group is part of Alibaba Group) was established in 2004 to make payments on one of the platforms of China — Taobao, but then she was connected to all the group’s major projects, including AliExpress, one of the leaders of Internet trade in the world. The principle of the service in the implementation of online payments is that the buyer sends money for the product not the seller, but the Alipay service, which “saves money” until confirmation of receipt of order. For payment in offline-store retail outlet requires a special terminal — mobile office. Today the system has more than 450 million confirmed users. According to souchrediteli Alibaba’s Lucy Peng, in 2016 using the service was carried out to 175 million transactions per day (71% using mobile devices). According to the report of the Association of Better Than Cash Alliance, in 2016 with the Chinese payment system users transferred $1.7 trillion (in 2012 — $70 billion). For comparison, another popular payment service PayPal in 2016 passed the transaction at $354 billion (approximately 16 million transactions per day), the system was 197 million users.
Plans Alipay within the next ten years to increase the number of users to 2 billion, and to increase the share of foreign users to 60%.
The fare on the bus using Alipay
Photo: Xu Kangping / Xinhua / Zuma / Global Look Press
Payments after the tourists
To use Alipay are primarily holders of cards issued by Chinese banks. Only in India, Korea and Thailand Alipay through working with local payment services provides and with the other cards.
The development of Alipay, offline and outside of China due to the increased number of Chinese tourists in the world. According to the National tourism administration of China, in 2016, the flow of tourists from China amounted to 122 million people, which is comparable to the number of actually having the passport of the population. According to the forecast of the administration, by 2020 the number of tourists from China will increase to 200 million people. Thus, according to the study Hotels.com about the behavior of Chinese tourists, the main factors when choosing a country to travel is the level of penetration into the infrastructure of the Chinese language and the ability to use for the calculations of the Chinese payment services and systems. Today payments through Alipay accepted more than 100 thousand trade organizations outside China, including popular among Chinese tourists Harrods and Printemps.
In the Russian shops for amber
The first partner of Alipay in Russia, which in late April will feature the first retail outlet with terminals for the operation of the service will be Modelbank (works mainly with small businesses), told representatives of the Bank and “Alibaba Russia”. The first retailers who will start accepting Alipay will be sellers popular among Chinese tourists goods — a network for the sale of amber “amber Russian”, Souvenirs, Russian and Soviet hours, located in the center of Moscow. “Now the technology start-up preparing several Moscow companies. All businesses working with Chinese tourists. They are located mainly in the area of Old Arbat, the most attractive to this audience. Among the first customers there are several jewelry shops, souvenir shops, watch shop, several hotels and hostels”, — says Maxim Mitusov, head of the “Modules” and the project Manager. By the end of the year Modelbank plans to sell 3-5 thousand devices that will be able to accept payments Alipay. The service also provides payment acceptance at the site “AliExpress Mall” (Russian goods).
In addition, in the near future the company plans to expand collaboration with shops of luxury goods and duty-free shops in Moscow airports. “According to our estimates, tens of thousands of outlets in Russia are interested in increasing sales to Chinese tourists,” — says Director of Alipay business development in Russia and the CIS Bogdan Zadorozhniy. The ability to purchase via the usual for Chinese tourists of means of payment will have a positive impact on the Russian small and medium businesses, which are involved in the tourism sector, said the CEO of “Alibaba” mark Zavadsky. To be localized for Russian users, Alipay, you first need to recruit a sufficient number of such partners, and to establish the procedure of interaction with them, he says.
Payment for goods in store using Alipay
Photo: Huang Zongzhi / Xinhua / Zuma / Global Look Press
Chinese tourists are the leaders in terms of expenditure in travel. In 2016, they spent about $261 billion, which is 12% higher than in 2015, according to preliminary data from the world tourist organization at the UN. For comparison, tourists from the United States who find themselves in second place, spent in travelling almost twice less — $122 billion Russia is not among the top destinations for Chinese people, but the number of tourists recent years has increased. By the end of 2016, the number of trips taken by Chinese people to Russia grew by 15% compared to 2015, and amounted to 1,288 million Among the most visited cities — Moscow and St. Petersburg. While Siberia and the far East-growing areas given the cross-border business activity in the region, said Alibaba.
The average expenditure per tourist trip from the Chinese is $4,000 per person, said Bogdan Zadorozhniy. According to the head of the program China Friendly Anna Sibirkina, tourists from China are very committed to traditional financial products. “We notice that they respond positively to the Chinese UnionPay cards in Russia,” she says. While Sibirkina doubt that the possibility of payment services through Alipay will be the reason for the growth of the tourist flow, but the Chinese guests “appreciate the desire to make the stay of the tourist comfortable.” “This could be a good marketing tool, but just one of many”, she added.
Over the past year, as told earlier, the representatives of the largest shops selling luxury goods, Chinese tourists are two to three times increased volume of purchases in Russia. To further increase tourist spending many of the shops began to hire staff with knowledge of the Chinese language and receive certificates on reception of UnionPay. But new “wave” of demand, retailers expect after the introduction of the tax — free return of foreign tourists of any sums paid in the form of value added tax. Its introduction is expected in October 2017.
Alibaba is increasingly conquering the Russian market, says Executive Director of the Association of companies the Internet-trade (AKIT) Artem Sokolov. However, he doubts that the release of the new payment service will be reflected on the Russian Internet-stores, he says. This, according to him, on the contrary, will lead to increased competition in the payment market. This may result in reducing the cost and improving the quality of all services both for retailers and for consumers, says Sokolov.
With the participation of Irina Lee