Ant Group, Mastercard, and Partners Extend International Consumer Friendly Zones Program to Facilitate Inbound Travel to China

Rhea-AI Summary

Ant Group and Mastercard, alongside 12 payment partners from Alipay+, expand the International Consumer Friendly Zones program to Chengdu and Chongqing. This program, already successful in Beijing, Guangzhou, and Shanghai, aims to enhance the digital payment experience for international travelers in China. Chengdu and Chongqing have become top inbound tourism destinations, with substantial increases in foreign national entries and exits. Supported by local governments, the program will cover over 60 primary shopping areas, tourist spots, airports, and high-speed railway stations in both cities.

Ant Group's Alipay+ supports 12 leading e-wallets across an 80-million-merchant network in China, allowing international visitors to use their home e-wallets. Additionally, international bank cards can be linked to the Alipay app for a seamless payment experience. The program's expansion responds to the anticipated growth in inbound travel, which the China Tourism Academy expects to reach 80% of pre-pandemic levels in 2024.

Positive

• Expansion of International Consumer Friendly Zones to Chengdu and Chongqing, enhancing payment convenience.
• Over 60 primary shopping areas, tourist attractions, and transport hubs to be covered in the program.
• Significant growth in foreign national entries in Chengdu (410,000 entries in the first five months of 2024) and a sixfold increase in foreign arrivals at Chongqing's international airport in Q1 2024.
• Spending by international visitors in Chengdu and Chongqing via digital payments increased 13 times year-on-year in the first half of 2024.
• Alipay+ supports 12 leading e-wallets, covering an 80-million-merchant network in China.

Negative

• Unspecified costs associated with program expansion and implementation.

Insights

Financial Analyst

Ant Group's expansion of the International Consumer Friendly Zones program to Chengdu and Chongqing represents a significant step in making digital payments more accessible for international travelers. By partnering with Mastercard and other major international card networks, Ant Group is enhancing the payment experience for a growing number of tourists. This move is likely to boost consumer spending, which has already increased 13 times year-on-year in these cities. For stakeholders, this signals a growing revenue stream and potential market share increase in the burgeoning inbound travel sector.

Short-term, we can expect a boost in transaction volumes, driven by the return of international travel and increased ease of digital payments. However, long-term benefits hinge on sustained tourism growth and the continuous improvement and adoption of digital payment systems.

Market Research Analyst

The integration of the International Consumer Friendly Zones program into Chengdu and Chongqing is a strategic response to rising tourism in these regions. By making payment methods familiar to foreign travelers, Ant Group and its partners are providing a seamless experience that is likely to attract more visitors and encourage higher spending. The significant growth in digital payment use indicates a strong preference and adaptation by travelers, which could set a new standard for other tourist destinations worldwide.

This initiative also aligns with the larger trend of digitalization in global commerce, reducing the friction often associated with cross-border payments. From an investor’s perspective, this program not only enhances Ant Group’s service portfolio but also strengthens its competitive position against other digital payment providers.

--International Consumer Friendly Zones program expands to Chengdu and Chongqing following successful launches in Beijing, Guangzhou, and Shanghai.

--Ant Group partners with major international card networks and leading Asian e-wallets to enhance digital payment experience for inbound travelers to China.

CHENGDU, China & CHONGQING, China--(BUSINESS WIRE)-- Ant Group and Mastercard, along with 12 overseas payment partners of Alipay+ and other major international card organizations, have extended the International Consumer Friendly Zones program to major Western Chinese cities of Chengdu and Chongqing, as inbound travel to the region rises driven by continued growth of international tourism and trade.

The International Consumer Friendly Zones program enhances payment convenience for inbound travelers by placing bilingual payment signage at primary shopping areas, local restaurants, and transport hubs in major Chinese cities. (Photo: Business Wire)

Chengdu and Chongqing have become prominent attractions for international visitors. Both cities secured spots among the top ten inbound tourism destinations in the first quarter of 2024. With the support of local government departments, the International Consumer Friendly Zones program will be rolled out to a total of over 60 primary shopping areas, renowned tourist attractions as well as the international airports and high-speed railway stations in the two cities. The participating merchants will enhance payment signage visibility to clearly inform customers about the array of digital payment methods supported by Ant Group and its partners.

Chengdu, the capital of Sichuan Province renowned for its giant pandas, witnessed 410,000 entries and exits of foreign nationals in the first five months of 2024, marking an increase of more than five times compared to the previous year. Similarly, the number of foreign arrivals at the international airport of Chongqing, known as the Mountain City of China, saw a sixfold increase in the first quarter compared to the previous quarter.

The two cities, which are connected by rapid train ride of just over an hour, have also become popular destinations for Association of Southeast Asian Nations (ASEAN) visitors to China. ASEAN was the largest trading partner of Sichuan in 2023. The Chongqing Connectivity Initiative is the third Government-to-Government project between China and Singapore and the only one to be established in western China.

In the first half of 2024, spending by international visitors in Chengdu and Chongqing via digital payment methods supported by Ant Group and its partners increased 13 times on year. Among e-wallet partners of Alipay+, a suite of cross-border mobile payment and digitalization technology solutions under Ant International, AlipayHK, Touch 'n Go eWallet (Malaysia), and TrueMoney (Thailand) ranked top three in terms of visitor transaction volume. Additionally, the number of merchants in both cities accepting payments from international visitors via Alipay+ grew more than five times year-on-year.

Ant Group now offers 2 mobile payment alternatives for international visitors in China. Alipay+ enables international visitors to pay with their home e-wallets across China. Alipay+ supports 12 leading e-wallets and payment apps in Asia for use across an 80-million-strong merchant network in China, including AlipayHK (Hong Kong SAR, China), Kaspi.kz (Kazakhstan), MPay (Macao SAR, China), Touch 'n Go eWallet (Malaysia), Hipay (Mongolia), NayaPay (Pakistan), Changi Pay (Singapore), OCBC Digital (Singapore), Kakao Pay (South Korea), Naver Pay (South Korea), Toss Pay (South Korea), and TrueMoney (Thailand).

The other option allows visitors to bind major international bank cards -- Mastercard, Visa, JCB, Discover®, and Diners Club International -- to the Alipay app, enabling access to a rich array of local Alipay services, including shopping, dining, ride-hailing to public transportation, without needing a mainland China bank account or phone number.

Following the initial rollout of the program in Beijing and subsequent expansion to Guangzhou and Shanghai earlier this year, Ant Group has been working intimately with partners to improve digital payment options' accessibility and ease of use for international travellers as inbound travel continues to recover. The China Tourism Academy expects inbound travel to the country to reach 80% of the pre-pandemic level in 2024, citing factors including the expansion of China’s visa-waiver policies to more countries as well as the gradual resumption of international flights.

About Ant Group

Ant Group traces its roots back to Alipay, which was established in 2004 to create trust between online sellers and buyers. Over the years, Ant Group has grown to become one of the world's leading open Internet platforms. Through technological innovation, Ant Group supports its partners in providing inclusive, convenient digital life and digital financial services to consumers and SMEs. In addition, it has been introducing new technologies and products to support the digital transformation of industries and facilitate industrial collaboration. Working together with global partners, the company enables merchants and consumers to make and receive payments and remit around the world.

About Mastercard (NYSE: MA)

Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240703034150/en/

Martin Mou, mouxu.mx@antgroup.com

Source: Ant Group

FAQ

What cities have recently joined the International Consumer Friendly Zones program?

Chengdu and Chongqing have recently joined the International Consumer Friendly Zones program.

What is the purpose of the International Consumer Friendly Zones program?

The program aims to enhance the digital payment experience for international travelers in major Chinese cities.

Which payment partners are involved in the International Consumer Friendly Zones program?

Ant Group, Mastercard, and 12 payment partners from Alipay+ are involved in the program.

How much has international visitor spending increased in Chengdu and Chongqing?

Spending by international visitors via digital payments increased 13 times year-on-year in the first half of 2024.

What payment methods are supported by Alipay+ in China?

Alipay+ supports 12 leading e-wallets and major international bank cards like Mastercard, Visa, JCB, and others.

What is the expected inbound travel level to China in 2024?

Inbound travel to China is expected to reach 80% of pre-pandemic levels in 2024.