Alipay is the default mobile payment method in China and increasingly useful for Malaysian businesses and travellers. This guide covers how to set it up, use it, and manage payments to Chinese suppliers.
Key takeaways
- Alipay is a mobile payment app used by over a billion people in China, mainly for QR-code payments to merchants, suppliers, transport and online platforms
- Malaysian users can register with a Malaysian mobile number and passport, and link an international debit or credit card, or a Chinese bank account, as a funding source
- Alipay recently raised transaction limits for foreign users to USD 5,000 per single transaction and USD 50,000 per year
- For businesses paying suppliers in China regularly, a multi-currency account with a CNH balance can settle payments directly without the transaction limits of a consumer wallet
Mobile payments run the show in China. Cash is rarely accepted at smaller merchants, international cards work at fewer places than they used to, and the app that matters most for day-to-day payments is Alipay. For Malaysian business owners visiting China for trade fairs, factory visits or supplier meetings, setting up Alipay is now part of trip prep.
Alipay is also useful from Malaysia, for shopping on Chinese e-commerce platforms like Taobao and 1688, and for making smaller payments to Chinese contacts and suppliers.
This guide covers the setup, how to pay, what it costs, and what to do when consumer-wallet limits become a bottleneck for business payments.
What is Alipay?
Alipay is a mobile payment app operated by Ant Group in China. Payments settle in seconds through QR codes, the user shows a code to the merchant, or scans one displayed by the merchant.
The app is used across China for retail, restaurants, taxis, transport, utilities, e-commerce checkouts, and payments to smaller vendors and suppliers. Rather than holding money like a stored-value wallet, Alipay draws funds from a linked source (a card or bank account) each time a payment is made.
For Malaysian users, Alipay serves two use cases: paying merchants during travel to China, and paying for goods on Chinese e-commerce platforms from Malaysia.
Setting up Alipay from Malaysia
You’ll need three things to get started: the Alipay app (available on the App Store and Google Play), your Malaysian passport, and a card or Chinese bank account to link as a funding source.
Registration starts by opening the app and selecting the international user option. You’ll receive an SMS verification code on your Malaysian mobile number, then be walked through identity verification, a passport photo scan and a facial recognition step. Once identity is confirmed, add a funding source under the payment methods section. Malaysian users can link a supported international debit or credit card, or a Chinese bank account if you have one.
Alipay now supports 16 languages including English, Malay, Indonesian and Chinese, which makes navigation considerably easier for Malaysian users. It’s worth running a small test payment before relying on the wallet for a larger transaction, since Malaysian card compatibility varies by issuer.
Making payments with Alipay
In-person payments in China work through QR codes. At larger merchants, such as supermarkets, retail chains, hotels, you’ll open the app, tap the pay/collect icon, and present your personal QR code for the cashier to scan. For larger amounts, you’ll be prompted to confirm with a password or biometrics. At smaller shops, food stalls and taxis, the flow reverses: you tap the scan icon, point your camera at the merchant’s QR code, enter the amount and confirm.
Online payments follow a similar flow. Chinese e-commerce platforms like Taobao, 1688 and Tmall support Alipay as a primary checkout method. On desktop, you’ll scan an on-screen QR code with your phone to authorise. On mobile, the checkout redirects into the Alipay app directly.
Fees, exchange rates and limits
When Malaysian users pay at merchants in China with a linked Malaysian card, Alipay may apply a service fee on larger transactions. Alipay converts MYR to CNY in real time at rates set by its partner financial institutions, which typically include a markup over the mid-market rate. The MYR equivalent is shown on screen before you confirm the payment. Fee thresholds and rates are set by Alipay and are shown in-app at the point of payment.
Transaction limits are set by Alipay and apply to verified users. Alipay allows verified foreign users single transactions of up to USD 5,000 and an annual spending limit of USD 50,000. These limits were raised from lower thresholds in 2024 to make payments easier for foreign visitors to China.
Using Alipay in Malaysia
Alipay is also accepted at over 2.5 million DuitNow QR touchpoints across Malaysia through Alipay+, a payment partnership that lets Alipay users pay Malaysian merchants by scanning DuitNow QR codes.
For most Malaysian users, this is more relevant for inbound Chinese visitors than for daily use. Local payment apps like Touch ‘n Go and DuitNow QR itself handle most domestic transactions. Alipay’s main value for Malaysian users remains payments in China or to Chinese vendors.
Paying Chinese suppliers from Malaysia
Alipay works well for consumer purchases and small business payments during travel. For regular supplier payments, a multi-currency account is often more practical.
The reason comes down to how Alipay is structured. The transaction limits of USD 5,000 per payment and USD 50,000 per year are designed for individuals, not businesses buying inventory in volume. Every payment also converts MYR to CNY at the card issuer’s rate plus any foreign transaction fees, which stacks up for businesses paying suppliers regularly.
WorldFirst is a payments provider that helps Malaysian businesses manage cross-border payments. The World Account is a multi-currency business account that lets Malaysian businesses hold funds in USD or MYR, and send payments in USD, MYR or CNH.
For suppliers in China, you can convert MYR or USD to CNH within the account at competitive rates, hold the CNH balance, and send CNH payments directly to the supplier. You choose when to convert, rather than converting at the card issuer’s rate on every transaction.
The World Account can also be linked to Alipay directly as a funding source, so Alipay payments to Chinese suppliers can draw from the World Account instead of a Malaysian card.
For businesses sourcing from 1688.com, World Pay is the authorised international payment provider for 1688.com. Malaysian buyers can pay 1688 suppliers in CNH directly from the World Account without needing a Chinese bank account.
FAQs
1. Can I use Alipay in Malaysia?
Yes. Alipay can be downloaded and set up from Malaysia with a Malaysian mobile number and passport. The app works for payments in China, on Chinese e-commerce platforms, and at Malaysian merchants who accept Alipay+ payments through DuitNow QR.
2. How do I top up Alipay from Malaysia?
Alipay doesn’t hold a balance the same way a stored-value wallet does. You link a funding source (an international debit or credit card, a Chinese bank account, or a multi-currency account) and the app charges that source when you make a payment.
3. What card can I link to Alipay from Malaysia?
You can link a supported international debit or credit card, or a Chinese bank account if you have one. Malaysian card compatibility varies by issuer and card type, so test with a small payment before relying on it for a larger transaction.
The information contained is general only and largely our views. Before acting on the information you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, estimates, mentioned products/services and referenced material constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. WorldFirst shall not be responsible for any losses or damages arising from your reliance of such information.
