Alipay, one of China’s largest mobile payments providers, signed a deal with point of sale tech provider First Data to expand its acceptance across the US.
Under the agreement, Alipay’s 450 million customers will be able to use its app at the four million businesses running First Data’s system in the country.
As the majority of the Chinese company’s transactions use QR codes rather than NFC technology, which is more commonly used in the US, payments will be routed through First Data’s tokenisation business Acculynk for verification.
The deal is in line with the strategy adopted by Alipay in Europe, which saw it target acceptance in a range of merchants popular with Chinese tourists. Locations included retailers at airports and flagship luxury stores in major cities.
Alipay North America President Souheil Badran said: “Our goal is to extend reliable payment services to the over four million Chinese consumers that visit North America every year.”
“Extending our partnership with a premier partner like First Data provides the merchants with a seamless integration and access to consumers who want to continue paying with their lifestyle mobile app.”
During 2016 the two companies partnered for a pilot of the system in a limited number of high-end retailers in California and New York.