Abstract
For over two millennia’s businesses, individuals and governments have integrated e-payments in their lives. The acceleration of cryptocurrencies has altered how consumers interact with financial institutions deranging the payment system. The acceleration has created e-commerce challenges alongside significant benefits (Guo, J., & Bouwman, H. 2016). Alipay is one of the most notable online payment platforms launched in 2003 in China by Taobao. Alipay uses a digital wallet, mobile app, and Alipay wallet to facilitate transactions. To reach Chinese merchants, Alipay is a must-have E-Business & E-Commerce payment method. Alipay has become the largest third-party service provider in China being available in over 70 markets. Notably, Alipay is adopted by 80,000+ retail stores globally. However, it is confronted by dual challenges. The primary purpose of this study is to investigate mobile payment with Alipay.
Benefits presented by Alipay
Today, Alipay has triggered the payment revolution not only in China but worldwide. According to Chelsea Zheng (2017), Alipay is not just an APP but also a lifestyle known as “NO CASH SOCIETY” aimed at creating frictionless, standard, and one-click payment experience.
Since its founding in 2003 by JACK MA-Alibaba co-founder, Alipay ranks top among the best, secure, and encryption payment mobile platform. The app has gained access to over 520 million users globally. Alipay equips its users with numerous benefits such as;
- Credit card for bills payment
- Bank account management and integration. You can add credit/bank to make payments/withdrawals/fund transfer etc.
- P2P transfer
- Mobile phone prepay top-up
- Trian and bus ticket purchase
- Food and eateries order
- Ride hailing’s
- Insurance selection
- Identification and storage of digital documents such as (transport fines, free credit card bills, property tax, automatic payment, tuition payment, repayment reminders., etc.
non-Chinese can use the Alipay app to make truncation only by loading the wallet with the chinses currency.
All the above transactions are free of charge within China. The services are trusted and secure; that’s why Chinese shoppers use the Alipay platform to make purchases on foreign websites.
Differences and similarities between Alipay and other online payment systems
Speed of funds transfer differentiates Alipay from other online payment platforms. Alipay calls for a Chinese ID to facilitate funds transfer (Guo, J., & Bouwman, H. 2016). The entitled limit is 50,000 USD annually; the recipient banks incur the transfer charges. The amount paid is inclusive of all taxes like sales tax, GST, VAT, and communication tax or any other that’s required.
Since most of the online payment platforms use an e-cash wallet, Alipay isn’t left behind because Alipay services are more successful in China. Similarly, to PayPal, WeChat, Google Pay., etc. Alipay permits its users to add their services form different companies to establish a more individualized experience. To create this personalized experience, users Alipay integrates other security mechanisms by use of their login password. This helps minimize fraud from hackers.
Problems presented by Alipay
Although e-payments transfer serves as a “payment staple,” companies are looking to utilize new payment methods that accommodate mass pay-outs i.e., both high and low volume transactions. Alipay has been charged with privacy criticism (ChinaDaily, 2018). The criticism questioned how the company gathers and uses user’s personal data.
Alipay does not support transactions overseas. Wiring of money out of China is subject to the Chinese law that requires proof of tax payment for money to move out of the country. As a foreigner, the process of wiring transactions oversee via Alipay is daunting. Failure of law compliance subjects you to troubles. However, a chines resident can wire to relatives or personal accounts overseas. The paradigm id that you must have Chinese ID to register to Alipay account (Yang, Q. 2017)
In conclusion, it is undoubtedly that Alipay is a significant player aimed at shaping future effortless, secure, and cashless payment. The Alipay platform has gone extra miles in securing the Alibaba platform and its subsidiaries to a more convenient method.