Alipay unveils Tap!, an alternative to QR code payments

Ant Group's company is taking advantage of the continuing adoption of physical mobile payments in China to launch an alternative to the QR code. Tap! is an optimized solution that uses NFC technology on mobile phones in a similar way to QR code payments. Alipay aims to offer new solutions to Chinese merchants, providing greater convenience while continuing to accept a wide range of payment methods.

FACTS

• Alipay has just unveiled a new mobile payment method called Alipay Tap! for use at points of sale.
• Alipay Taps! is presented as an alternative to QR code payments, simplifying the payment process for users and making checkouts more fluid.
• Tap! is an alternative to the traditional use of NFC chips based on card emulation. The cell phone chip no longer acts as an imitation card, but as a chip reader. For this, the solution is based on a complementary physical medium connected via USB to the merchant's cash register.
• In concrete terms, a payment is made as follows:
• The user approaches the dedicated module with an unlocked cell phone;
• Thanks to the NFC chip, the mobile will detect the payment and directly open the Alipay application;
• All the user has to do is confirm in the application, and payment is made directly online.
• The physical module can be easily added by the retailer via a simple USB connection. Thanks to a camera embedded directly in the holder, the module also supports QR code payments.
• The solution requires the phone to be unlocked beforehand, offering a secure solution and reducing the risk of fraud.
• Alipay Tap! is available for iPhone and Android, and is starting to be deployed in major Chinese cities.

CHALLENGES

• Simplify checkout for retailers: The Tap! payment path is presented as faster, and according to Alipay, it enables merchants to streamline in-store payments.
• Complementing without disrupting established practices: The new solution launched by Alipay aims to provide an additional alternative to NFC and QR code payments. However, the company has designed its solution so as not to reduce the number of payments accepted by merchants. Thanks to support for QR code payments via the module's camera, merchants can continue to accept QR code payments, which are widespread in China with solutions such as WeChat Pay.
• A secure and practical solution: Despite its speed of use, Tap! maintains a high level of security. A locked phone will not be able to confirm a payment, and the user is obliged to enter his or her Alipay password in order to proceed with payment. However, this step is not an additional constraint, as the user must validate the payment in the Alipay application.

MARKET PERSPECTIVE

• Thanks to the rapid adoption of digital and mobile payments, China has become a laboratory for innovation in this field. QR code payments are widespread, thanks to players such as WeChat Pay, Meituan Pay and Alipay. According to the Chinese Central Bank, the country's mobile payment penetration rate is 86%, a world record. The context is therefore particularly favorable for the emergence of innovative solutions such as Alipay's Tap!
• Alipay has also launched its Alipay+ QR code payment service in France, in Franprix stores, by the end of 2023. The aim is not necessarily to target a French audience, but rather to enable Chinese tourists visiting the capital to retain their payment habits and thus simplify exchanges with French retailers.