Alipay App: A Comprehensive Guide to Its History and Features

Alipay App has a rich history that dates back to 2004 when it was first launched by Jack Ma, the founder of Alibaba Group.

The app was initially called Alipay Wallet and was designed to facilitate online payments between individuals and businesses.

Today, Alipay App is one of the most widely used mobile payment apps in China, with over 1 billion users worldwide.

Its popularity can be attributed to its user-friendly interface and the convenience it offers to users for making payments, transferring funds, and even investing in financial products.

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Alipay was first launched in 2003 by Taobao.

In 2010, the People's Bank of China issued licensing regulations for third-party payment providers, which led to Alipay being restructured as a domestic company controlled by Alibaba CEO Jack Ma.

Alipay was rebranded as Ant Financial Services Group in 2015.

Alipay's parent company was involved in a controversial ownership dispute in 2011, which was resolved by Alibaba Group, Yahoo!, and Softbank in July of that year.

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In 2013, Alipay launched a financial product platform called Yu'e Bao, which offered an online money market account with a higher interest rate than banks.

Alipay's Yu'e Bao platform became China's largest online money market fund, with 152 million users and 810 billion RMB (US$117 billion) in funds under management by mid-2016.

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Alipay was first launched in 2003 by Taobao. It quickly gained traction in the Chinese market.

The People's Bank of China issued licensing regulations in June 2010 for third-party payment providers, which led to Alipay's restructuring as a domestic company controlled by Alibaba CEO Jack Ma. This move was made to facilitate regulatory approval for the license.

The 2010 transfer of Alipay's ownership was a bit of a controversy, with media reports in 2011 suggesting that Yahoo! and Softbank, Alibaba Group's controlling shareholders, were not informed of the sale for nominal value. The incident was criticized in foreign and Chinese media as harming foreign trust in making Chinese investments.

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Alipay launched a financial product platform called Yu'e Bao in 2013, which offered an online money market account with a higher interest rate than what was available from banks. It became China's largest online money market fund.

By mid-2016, Alibaba reported having 152 million Yu'e Bao users, with 810 billion RMB (US$117 billion) in funds under management. This was a significant milestone for the platform.

In 2015, Alipay's parent company was re-branded as Ant Financial Services Group. This marked a new chapter for the company.

Alipay unveiled their facial recognition payment service in 2017, allowing users to make payments with just a scan of their face. This was a major innovation in mobile payments.

In 2020, Alipay upgraded from a payment financial instrument to an open platform for digital life. This move expanded the company's scope beyond just payments.

The introduction of interoperability of payment QR codes in 2021, as mandated by the Ministry of Industry and Information Technology, allowed for greater flexibility in mobile payments. Users could now use Alipay, WeChat Pay, and UnionPay's Cloud QuickPass platforms interchangeably.

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Prior to Alipay, third-party payment was a legal grey area in China. Alibaba informed regulators about the development of Alipay from the outset and provided regulators with monthly updates on its development.

In 2010, the People's Bank of China (PBoC) issued administrative measures regarding non-financial payment services, retroactively recognizing the legal status of online third-party payment platforms like Alipay.

Alipay obtained a license to become one of the first licensed non-financial institutions to conduct payment operations in 2011.

The PBoC initially supported the growth of Yu'e Bao and similar funds with a permissive regulatory environment, but began increasing regulation of such funds in 2017.

In September 2021, the Chinese government stated its intent to dismantle the Alipay super app into separate businesses due to concerns over "systemic financial risks".

Alipay introduced a new privacy protection feature in November 2021, amid growing concerns over data privacy and after China's Personal Information Protection Law (PIPL) came into effect.

Alipay was banned in India on 2 September 2020 by the government amid the 2020 China-India skirmish.

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Alipay offers a wide range of services, including payment services for over 460,000 online and local Chinese businesses.

You can use Alipay to pay for various expenses, such as utility bills, transportation fines, property fees, and cable television fees, in over 300 cities nationwide.

With Alipay, you can also pay credit card bills, bank account management, P2P transfer, prepay mobile phone top-up, bus and train ticket purchases, food orders, and vehicles for hire.

The Alipay app allows users to add their own services provided from different companies to create a more personalized experience.

Alipay has partnered with over 65 financial institutions, including Visa and MasterCard, to provide these services.

You can also use Alipay to purchase insurance, select a digital identification document storage, and make online check-out payments on most Chinese-based websites like Taobao and Tmall.

In addition, Alipay has a credit card repayment service that supports 39 domestic bank-issued credit cards, offering free credit card bills checking, repayments with no administrative fee, and automatic repayment.

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As of 2014, 76% of credit cards were also paid by Alipay Wallet.

In 2019, Alipay introduced a service fee for the payment of credit card through Alipay, charging 0.1% for payments exceeding 2,000 yuan.

Alipay has also introduced Tourpass, a service component that allows non-Chinese users to use its mobile payment feature by pre-loading Chinese Yuan equivalent foreign currency into the app.

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Alipay is used by over 300 worldwide merchants to sell directly to consumers in China, supporting transactions in 18 foreign currencies.

In 2017, Ant Financial partnered with CC Financial, a start-up company in Singapore, to expand Alipay's presence in the country.

Alipay has 20,000 acceptance points in Singapore and plans to open up its platform to Singapore banking users.

The Alipay Brazil Digital Consumer Account was introduced in July 2021 as a digital wallet for transactions on AliExpress, but it was discontinued on September 30, 2022.

Ant Financial acquired a majority stake in 2C2P, a Singapore-based provider used by merchants worldwide, in April 2022.

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To use Alipay, download the app from the App Store for iPhone, iPad, and Apple Watch. The app is also available in an "International Version" designed for overseas travelers to China.

Foreign visitors can link their international credit or debit card from Visa, Mastercard, Diners Club, Discover, and JCB to pay at millions of Alipay partner merchants across China. This means you can use Alipay for mobile payments at most merchants, including subways, buses, taxis, high-speed train tickets, restaurants, supermarkets, hotels, and tourist attractions.

You can now use Alipay without a Chinese bank account, thanks to a recent update that allows foreign visitors to connect their international cards to the app. This means you can spend up to $2,000 a year using Alipay without registering your ID, or up to $5,000 with ID registration.

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Using Alipay for online payments is a breeze. Simply select Alipay as your preferred payment method at the checkout page.

Before proceeding with the transaction, make sure the online merchant accepts Alipay. This is crucial to avoid any inconvenience.

To pay online using Alipay, you'll need to have a bank card added to your Alipay account. This process is straightforward, as shown in Example 3.

You can also use Alipay's online payment feature to pay like a local Chinese. This is made possible by scanning a merchant's payment code or showing your payment code to a merchant.

To give you a better idea of how Alipay's online payment feature works, here are some key facts to keep in mind:

In case your payment fails, one of the reasons may be that your bank rejected the transaction. If this is the case, you can call your bank to resolve the issue.

Using Alipay can be a safer option than carrying cash, as you can omit the risk of losing money by having funds in the app.

Carrying a lot of cash on your person abroad is rarely a good idea, and Alipay eliminates this risk.

Alipay streamlines the process of paying, making it a convenient alternative to using cash abroad.

In fact, using Alipay can be as easy as paying at home, with no extra set-up needed to enable cross-border payments.

Here are some of the key benefits of using Alipay:

Using Alipay comes with some considerations you should be aware of. One thing to keep in mind is that payments are settled using Alipay's foreign exchange rates, which may not be the same as the mid-market exchange rate you'd find on Google.

This means you might not get the best possible rate when making transactions in a foreign currency. It's a good idea to check the exchange rate before making a purchase to get a sense of the difference.

You should also check with the online merchant to make sure they accept Alipay as a payment method. If they don't, you won't be able to use it to pay for your purchase.

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You can send Chinese Yuan instantly to Alipay users with Wise. All you need is the recipient’s name and Alipay ID to complete the transaction. This service allows you to send money directly from your account to the recipient's Alipay account.

With Wise, you can also receive money through Alipay free of charge when the sender uses Wise to transfer the funds. It's a convenient way to send and receive money between friends and family.

You can check the latest exchange rate for USD to CNY on Wise. This will give you an idea of the current exchange rate and help you plan your transaction.

Here's a quick summary of how to send Chinese Yuan instantly to Alipay users:

It's worth noting that Wise is a popular service for international money transfers, and it's known for its fast and secure transactions.

Changing the language setting in Alipay is a straightforward process. You can do this by opening the app and heading for the "我的 (me)" section.

To change the language setting, follow these steps: Setting - "通用 (General)" - "多语言 (language)" - "English" - "保存(save)".

Alternatively, you can also change the language setting by opening the app, heading for the "我的 (me)" section, and then following the same steps as mentioned above.

Changing the language setting to English will make the app more accessible and user-friendly for foreigners in China.

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To add a bank card to Alipay, you can follow these simple steps. Tap on the "Me" icon, then choose the "Bank Cards" tab. Click the "+" icon in the top right corner of your screen to start the process.

You can enter your bank card number or scan it to add it to Alipay. Visa, Mastercard, Diners Club International, and some other cards are accepted. Alipay also accepts bank cards such as Visa, Mastercard, JCB, etc.

To add a credit or debit card, click "Add Credit or Debit Card" on the home page and input your bank card information. You can link your international credit or debit card from Visa, Mastercard, JCB, Discover, and Diners Club International to pay at millions of Alipay partner merchants across China.

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Here are the types of cards you can add to Alipay:

This will allow you to use Alipay for mobile payments at most merchants across Mainland China, as well as for a variety of services including subways, buses, taxis, high-speed train tickets, and more.

Alipay is similar to other payment systems like Apple Pay and WeChat Pay, as it overlays traditional card payment methods. However, unlike instant payment systems like Venmo or Zelle, Alipay's funds transfer between counterparties is not immediate, and the settlement time depends on the chosen payment method.

Alipay's innovative escrow feature was a major reason Taobao outcompeted eBay/EachNet in the Chinese market. This feature was implemented and integrated into Taobao when Alipay was first established.

Alipay's parent company, Alibaba Group, was founded by Jack Ma in 2004, and it has since become a leading player in the Chinese e-commerce market.

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Using Alipay can be a great way to make payments, especially when traveling abroad. It's safer than carrying cash, as you can omit the risk of losing money by having funds in the app.

One of the main advantages of Alipay is its convenience. It streamlines the process of paying, making it a convenient alternative to using cash abroad.

In mainland China, you can pay like a local without any extra setup needed. This is because Alipay enables cross-border payments with ease.

Here are some key pros of using Alipay:

Alipay is similar to other payment systems like Apple Pay and WeChat Pay, as it overlays traditional card payment methods. It's also similar to PayPal in that it allows users to make peer-to-peer payments.

However, there are some key differences between Alipay and instant payment systems like Venmo or Zelle. Unlike these systems, Alipay doesn't transfer funds immediately between counterparties, and the settlement time depends on the payment method chosen by the customer.

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Alipay's mandatory escrow feature was a major innovation for e-commerce platforms when it was implemented. This feature helped Taobao outcompete eBay/EachNet in the Chinese market.

Here are some key differences between Alipay and PayPal:

Overall, while Alipay and PayPal share some similarities, they have distinct differences that set them apart in the world of online payments.

Using the Alipay app can be a convenient way to manage your finances, but you might be wondering if it's safe to use. Alipay is not FDIC insured, which means that if the company goes out of business, your funds could be lost.

Alipay takes the security of your data very seriously. It uses advanced encryption to protect your private information and make payments secure.

Alipay's risk management framework is designed to prevent fraud and money laundering. This framework helps keep your transactions safe and secure.

Alipay also has real-time monitoring that tracks your risk level and all payments 24/7. This ensures that any suspicious activity is quickly detected and addressed.

Here are some of the key security features of Alipay:

To pay with Alipay, you have several options. You can make online payments by selecting Alipay as your preferred payment method at the checkout page. This assumes the online merchant accepts Alipay, so be sure to check beforehand.

In-store payments are also possible using your mobile. There are two methods: merchant-presented mode and customer-presented mode. The merchant-presented mode involves scanning the merchant's QR code on your phone and entering the payment amount.

You'll often find the merchant's QR code next to the tills or on restaurant tables. Merchants who join the Alipay network don't need to buy any equipment for collecting payment this way; they simply share their QR code with customers.

The second method is the customer-presented mode. Some merchants may have Point of Sale systems, allowing them to scan the payment code presented by the customer. This method can be faster, even with a weak connection.

Here are some key points to keep in mind:

For international travelers, Alipay offers an "International Version" of its app, which allows you to link your international credit or debit card to pay at millions of Alipay partner merchants across China.

With Alipay app, you can easily manage your accounts and transactions. Alipay allows you to link multiple bank cards to your account, making it convenient to transfer money between accounts.

You can also set up a virtual credit card within the app, which can be used to make online purchases or pay bills. This virtual card can be used to make purchases without revealing your actual card details.

To add a bank card, simply navigate to the "Payment Methods" section, select "Add Card", and follow the prompts to enter your card information.

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To recharge your balance, head back to the main menu on "Me" and find the "Balance" option. From there, you'll see the "Top up" option, which is the key to getting your balance back in order.

To initiate the top-up process, click on the "Top up" option and enter the amount you want to add to your balance. You'll also need to transfer funds from your bank card, so make sure you have that information handy.

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The amount you can top up at one time is usually limited, so keep that in mind. You can check the specific limit by following the top-up process and seeing what's allowed.

To confirm the top-up, simply press the "Top Up" button. That's it! Your balance should now be updated with the new amount.

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If you need to delete your Alipay account, it's a straightforward process that can be completed in just a few steps.

To start, go to the "Settings" by clicking the corresponding icon. This will open up a menu where you can manage various aspects of your account.

Select "Account and Security" from the menu to proceed with deleting your account. You'll find this option listed among the other settings.

Next, find "Account Cancel" on the bottom of the page. This is where you'll initiate the account deletion process.

You'll be asked to choose the reason why you want to cancel your Alipay account, but you can skip this step if you prefer. It's entirely up to you.

Finally, carefully review the account to be canceled and the consequences that come with it. Then, press "Confirm and continue" to complete the deletion process.

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Alipay is free to download and get an account, but there are charges for money transactions, receiving money, and bill payments if you exceed the set limits.

You can enjoy a basic free quota of 20,000 yuan for transferring money from Alipay to a bank card or account balance withdrawals if you have multiple real-name accounts under the same ID.

For each transaction exceeding the quota, you'll be charged a service fee of 0.1%, with a minimum of 0.1 RMB per transaction.

Non-real-name accounts don't have a free quota, and each transaction will incur a 0.1% service charge, with a minimum of 0.1 RMB per transaction.

Some expats might be charged for each transaction if they haven't completed real-name authentication.

Here's a breakdown of the fees: