Challenges and Opportunities for Market Adaptation of Alipay in the US

Abstract

China is becoming a cashless society with rapid advancement and adoption in mobile payment in recent years, with Alipay taking the leading role. The total mobile payment transaction value reached US $41.51trillion in 2018, a more than 27-fold increase from 2013, according to the central bank China. Alipay has 900 million domestic annual active users and about 1.2 billion global users by August 2020, with its financial services covering 720 million consumers and 28 million merchants. Alipay, like other Chinese FinTech giants, is expanding into the global market. The US is among one of key global markets. This paper examines opportunities as well as problems and limitations of Alipay in the US market adoption from different perspectives with a detailed introduction of ant financial services as well. This paper also presents a discussion of the COVID-19 impact on Alipay in the end.