Market Overview

Alipay Seeks Japanese Partners to Strengthen Cashless Experience across the Country for Tourists before 2020

  • Alipay to deepen connections and network for tourist boom at and
    after Tokyo Olympics 2020
  • Alipay to work with local banks and e-wallets to further expand
    small and micro merchant network to help boost local economy

Alipay, the world's leading mobile and online payment platform operated
by Ant Financial Services Group ("Ant Financial"), today announced that
it will collaborate with a wider range of local Japanese partners to
build a cashless environment for tourists coming to Japan, in particular
for the Tokyo Olympic Games in 2020. This will allow the large number of
visitors coming from China the chance to enjoy easy payment methods that
they are familiar with and provide business opportunities for local
merchants in Japan. In addition, efforts will continue to extend Alipay
coverage throughout Japan as one of the most popular tourist
destinations for travelers from China and other Asian countries.

"Alipay is dedicated to enhancing user experience and creating value for
small and micro businesses through technology. The Tokyo Olympics and
the hike in visitors that this will bring is a good target for us, to
ensure that the Alipay platform is the bridge between inbound visitors
and local merchants here in Japan. It is also important that we are
collaborating with partners not only in the metropolitan areas and big
cities but also in smaller cities with popular tourist attractions. We
look forward to working with a wide range of Japanese partners to
achieve this ambition, and in doing so contribute in some way to driving
the local economy of areas across Japan," said Eric Jing, Executive
Chairman and CEO of Ant Financial.

The number of Chinese tourists visiting Japan continues to increase year
over year. Close to 7.35 million people came to Japan in 2017 with a
y-o-y growth rate of 15.4% (※ 1), and the inbound consumption from this
group reached 1.6 trillion yen (US$14.3 billion, ※ 2). This trend is
likely to continue and the Olympic Games in 2020 are expected to be a
peak with visitors attracted to the international sporting spectacle as
well as the country's famous locations.

According to Alipay's statistics, Chinese visitors' spending through
mobile payment is also growing rapidly. From the beginning of July to
the end of August in 2018, the average consumption of each Chinese
Alipay user in Japan reached near 3,900 yuan (US$569). This average
spending represented an increase of 52% compared with the previous year,
and the total transaction volume grew by 165%.

Alipay is expanding its services across the country in Japan which
reflects the needs of increasingly adventurous Chinese tourists.
Specific collaborations to date with regional banks, such as Hida Credit
Union and Kyoto Shinkin Bank, have allowed Alipay to make its payment
services available in tourist spots and shops out of the major cities.
To further expand its merchant network, Alipay is also seeking to work
with more small and micro merchants by cooperating with local mobile
payment platforms in Japan such as Line Pay and Paypay.

Alipay, which currently has over 700 million active users in China, was
introduced to Japan to provide services to Chinese visitors at local
merchants in December 2015 and is currently available in all 47
prefectures across the country. It is available in a wide range of
outlets to support tourism including airports, department stores,
restaurants and popular attractions.

※ 1: Source: Japan Tourism Board (JNTO) "Trends in the number of
customers outside Japan"

※ 2: Source: Tourism Agency "Survey on consumption trends of foreigners
visiting Japan" Heisei 20 (2017) annual value (Final)

About Alipay

Operated by Ant Financial Services Group, Alipay is the world's largest
mobile and online payment platform. Launched in 2004, Alipay currently
works with over 200 domestic financial institution partners. Over the
years, Alipay has evolved from a digital wallet to a lifestyle enabler.
Users can hail a taxi, book a hotel, buy movie tickets, pay utility
bills, make appointments with doctors, or purchase wealth management
products directly from within the app. In addition to online payments,
Alipay is expanding to in-store offline payments both inside and outside
of China. Alipay's in-store payment service covers over 40 countries and
regions across the world, and tax reimbursement via Alipay is supported
in 29 countries and regions. Alipay works with over 250 overseas
financial institutions and payment solution providers to enable
cross-border payments for Chinese travelling overseas and overseas
customers who purchase products from Chinese e-commerce sites. Alipay
currently supports 27 currencies.

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