The Mobile Payment War: Alipay VS. Paypal

This video provides a brief introduction to let you get know about Alipay in China. In many places, if you leave the house without your wallet, you will be in trouble. Can not pay for food, transportation or any necessities. However, in China’s largest cities, you can survive without carrying a pocket with cash and credit cards — as long as you’ve got your smartphone.


I believe in most of the modern cities. Mobile payment has become a kind of popular lifestyle in people’s daily life. From the day customers had adopted credit card payment at the point of sale instead of carrying lots of money with them.  The production of credit card and Pos machine at the sale of point of shopping malls and retailers increasing safety coefficient and convenience for customers in previous lives.

But now, as the graph shows below, Smartphone ownership in Australia increased from 11.1 million in 2013 to 15.3 million (2015). During the same period, tablet ownership rose from 6.3 million to 11.2 million. Smartphone and tablet make up 63% of total time spent on devices in September 2015. Therefore, mobile payment has become a socially acceptable way for the public.

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In August 2012 it looked like PayPal’s move into China was dead. PayPal is fail to gain Chinese market due to their competitor Chinese e-commerce firm Alibaba group. PayPal currently devote in cross-border sales between Chinese companies and foreign consumers but is not that successful when handling trade-offs between consumers and retailers within China. Alibaba’s  subsidiary company-Alipay controls this area.

Alipay, the payment platform under Chinese e-commerce company Alibaba Group Holding which occupied 80% of the mobile payment market and 450 million consumers and further generates 1.8 billion each day. Besides paying at retailers, the app can be used when paying to friends or splitting the bill.

Here are some evidence show that more and more oversea companies tend to corporate with Alipay and Wechat payment to beat competitors and win relatively competitive advantages among Chinese customers.  For example, Commonwealth Bank of Australia corporate with Alipay of China have made a deal to allow Chinese customers to pay for goods and services in the stores of CBA customers using the bank’s Albert payments device.

On the other hand, there is a quite efficient way to attract customers is that Alipay had provided AUS$100 million for their users during the Spring Festival as a lucky money to greet customers. My father installed this application to play this just for fun; even he never use the mobile payment before.  Alipay can be used for everything by pressing a screen. The customers can pay the money through their Apple Watch. People use it to transfer money, pay their bills and add money to their phone account. As one of the Alipay customers, I often save my money in the Alipay account rather than bank account due to the interest rate is higher than most of the banks.

By comparing with Paypal, do you think is seems to lose the competitiveness in China, many international companies due to the lack of e-commerce. How to solve this problem?

Also are you a Mobile payment adapter? Which app do you usually use? Welcome to share the experience with me!



4 thoughts on “The Mobile Payment War: Alipay VS. Paypal

  1. Thank you for sharing this interesting article! I know that two bigest third party payment platforms are Wechat Pay and Alipay in China. I remebered 6 months ago, i went back to China.
    when I went shopping, I saw that great majority of shops accepted WeChat and Aplipay as payment methods. Even taxis did! I can go out without cash or cards. A phone is a solution to everything! Technology has changed the way we live and the way the world does business!

    Liked by 1 person

    1. Thanks for your reply! I have the same experiences with you. There is a most interesting event just happened at 1/04/2017. I want to share it with you, Alibaba had launched a new application which called Alipay Air. Jack Ma believe that may become the future of the mobile payment. By using this application, customers can link their payment account with their fingerprints or palmprint. This technology seems to replace the use of barcode and QR code. Customers even do not need to take their self-phone with them, also can buy anything they want. How cool it is. I expect this innovation will further enhance customers experiences. And no doubt, Alibaba Group going to earn unimaginable profits from Chinese customers by creating this Alipay Air.


  2. I think at the end of the day, it comes to how convicent the payment method really is.

    From my experience, PayPal is not as user friendly as Alipay.


    1. Definitely! The loss of market share require Paypal to increase their level of investment in marketing since the offline accessibility is important. In my opinion, the first step they need to take is that continuing to extend out their merchant coverage into physical stores. Moreover, mobile technology used in the physical world is the sharing economy, where it’s providing a real consumer benefit. The last step is that creating great customer and merchant experiences is the main object.


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