How to use Alipay as a foreigner in South Asia
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Learn how to set up Alipay before your next business trip to China and use the World Card to make payments in CNH without excessive conversion fees
Key takeaways
- Alipay is one of China’s leading mobile payment platforms, used by over a billion people for both retail and business payments
- Foreigners can use Alipay by linking a supported international card to their account
- After registering their ID, foreign nationals can make single transactions of up to US$5,000 and annual transactions of up to US$50,000
- The World Card can be linked to Alipay, letting businesses in India, Pakistan and Bangladesh make payments in CNH with no FX fees when sufficient CNH balance is held
If you are travelling to China for the Canton Fair, factory visits or supplier meetings, you will quickly find that cash and international cards do not go very far. Most restaurants, hotels, transport, retail stores and even street vendors run on QR code payments and Alipay is one of the most popular mobile payment apps with over one billion users.
Without it, managing basic day-to-day transactions can become challenging. In this article, we take a look at how to set up Alipay as a foreign user, the transaction limits that apply, and how to link the World Card to keep your conversion costs low.
What is Alipay?
Alipay is a mobile payment by the Alibaba Group, which is one of the two dominant payment apps in China (alongside WeChat Pay). Together, AliPay and WeChat have over 90% of the market share.
You can use Alipay to make mobile payments at retail stores, pay for purchases on e-commerce platforms like Taobao and 1688.com, settle utility bills and even place wholesale orders with Chinese suppliers. The app integrates with a large number of banks and financial providers across China, which means you can pay merchants directly through QR codes or even facial recognition.
How does Alipay work?
Alipay is a mobile payment app and digital wallet. To start using it, you need to link a bank account, credit card, debit card or another supported payment method to your Alipay account. Once linked, the app draws funds from your connected payment method whenever you make a transaction.
- For in-person payments, you can scan the merchant’s QR code or let the merchant scan your QR code to send you a payment request.
- For online payments, you can get redirected to the Alipay app to authorise the payment directly or use your phone to scan the QR code displayed on the payment screen.
In most cases, Alipay transactions are processed in seconds
Alipay transactions, in most cases, are processed in seconds and funds become available in the receiver’s account almost immediately.
Can you use Alipay as a foreigner in China?
Yes. Foreigners can use Alipay in China to make mobile payments to vendors, suppliers, hotels and other service providers. You will have to top up your Alipay account first by linking an international debit card, credit card, or supported bank account.
But when you pay through Alipay using a foreign card, the transaction amount is converted to CNH from your local currency. Depending on your card issuer, you may be charged a currency conversion fee and a foreign transaction fee on every payment. If you are travelling to China for a multi-day business trip, these fees add up.
To avoid it, you can consider getting a multi-currency card that lets you hold CNH cards.
The World Card is a Mastercard-powered business payment card offered by WorldFirst, linked to the World Account that supports 15+ local currency accounts, including CNH. You can convert your base currency to CNH at competitive exchange rates before your trip, then link the World Card to Alipay.
So when you finally make a payment on Alipay, the transaction draws from your existing CNH balance with zero FX fees.
How to set up Alipay as a foreigner
Here’s how to setup Alipay from India, Pakistan or Bangladesh:
1- Find and install the Alipay app from your App Store or Google Play store
2- Open the app and sign up for a new account
3- Add your mobile number and the verification code you receive on your phone
4- Once you are logged in, you’ll be guided to link your Alipay account to a bank account, credit card/ debit card, BNPL, or other wallets. To add your World Card, click on ‘Add a credit card or debit card’ and add your World Card details there
5- After your card details are added to Alipay, you are all set to make payments
Are there any restrictions for foreigners using Alipay?
Alipay currently allows foreign nationals to send up to $5,000 in a single transaction and the annual transaction limit is $50,000.
But if your business needs to make routine payments to Chinese suppliers, Alipay may not be enough. You can also consider setting up a multi-currency account to pay Chinese suppliers directly at competitive rates and in their preferred currency.
Simplify your global business expenses with a World Card
The World Card is a Mastercard-powered business payment card linked to the World Account. You can issue up to 20 World Cards at no cost. Every card comes with its own unique card number, expiry date and CVV.
When you pay in any of the 15 supported currencies (including CNH) with sufficient balance held in that currency, there are no conversion fees.
So, you can link it directly to Alipay and make payments in CNH from your existing balance, with zero FX fees. Apart from Alipay, the card works anywhere Mastercard is accepted and allows you to make transactions in over 150+ currencies.
Opening a World Account and getting your World Card are both free.
FAQ
Does Alipay work in Pakistan and Bangladesh?
Yes. You can download and set up Alipay from Pakistan and Bangladesh by registering with your mobile number, verifying your identity and linking a supported international card.
Can I use Alipay to pay 1688 suppliers?
You can use Alipay for smaller 1688 purchases, but the US$50,000 annual transaction limit for foreign users may not cover regular wholesale orders. You can use World Pay to pay 1688 suppliers directly in CNH from your World Account without these restrictions.
Is there a transaction limit for foreigners on Alipay?
Yes. After identity verification, foreign users can make single transactions of up to US$5,000 and annual transactions of up to US$50,000. These limits cannot be increased for business accounts.
This article is intended for informational purposes only and does not constitute legal advice or professional advice. This article should not be regarded as constituting an offer or a solicitation to buy or sell any regulated or financial products or services. WorldFirst makes no representations or warranties regarding the accuracy, completeness, or applicability of the content, and readers are encouraged to consult with legal professionals or other professionals for advice tailored to their specific situation. WorldFirst does not guarantee the accuracy and completeness of this article and expressly disclaims any and all liability to any person in respect of the consequences of anything done or omitted to be done wholly or partly in reliance on this article.
Hu Wenzhan is the Emerging Markets Country Manager at WorldFirst. He brings expertise across Fintech, Payments, Banking, New Markets Growth to help clients grow their global business.
Hu Wenzhan
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