Australian business-only bank Tyro has signed a deal with Alipay becoming the first bank down under to offer all-in-one EFTPOS solutions for the Chinese company.
The partnership will allow more than 20,000 businesses using Tyro’s solution to accept payments via the popular Chinese app.
Tyro says it is working with several merchants to determine appropriate pilots sites for a late-2018 launch and will offer the service more broadly from the second quarter of next year.
The company says the Alipay integration allows its merchants to accept all payment types, letting customers ‘choose the way they want to pay’.
Robbie Cooke, CEO at Tyro says, “[This deal] sees Tyro continue to challenge the status quo, being the first Australian bank to give its merchants the opportunity to seamlessly integrate with Alipay, enabling them to better serve Chinese tourists and giving customers more choice in how they want to pay.”
In October 2016 Alipay and CommBank signed a memorandum of understanding (MOU), which included plans to work together on a payment solution to allow Australian retailers to accept Alipay payments in-store.
So far the two financial giants haven’t released an integrated payment solution, however Which-50 understands the discussions are ongoing.
UPDATE 29/08/2018: CommBank has confirmed its Alipay solution is still in development. “We are continuing to work closely with Alipay to develop and offer a simple payment solution that allows Chinese tourists and Chinese students to use Alipay at Australian retailers. We will be launching this capability on our Albert EFTPOS tablets in the coming months,” a spokesperson told Which-50.
Currently, more than 10,000 Australia and New Zealand businesses, such as Chemist Warehouse, JR Duty Free and WHSmith accept Alipay in their stores via various agreements.
Integrating with a bank like Tyro will allow the Chinese payments company to accelerate its roll out of Alipay across Australia.
George Lawson, country manager ANZ at Alipay says, “Banks are pivotal to Alipay’s expansion in Australia as it allows us to switch on our technology for thousands of merchants simultaneously through their existing payment terminals.
“Australian businesses have been calling out for their banks to partner with Alipay to improve their exposure to the rapidly expanding Chinese visitor market so it’s pleasing to see Tyro take the lead on this and give their merchants access to new customers and incremental revenues.”
Tyro says this Alipay integration is part of a wider scope from the business-only bank to offer alternative payments, as part of its existing EFTPOS and banking-specific products.
Data from Nielsen shows 65 per cent of Chinese tourists use mobile payment platforms during their overseas travels, six times more than non-Chinese tourists. In addition, over 90 per cent of Chinese tourists would consider using Alipay when travelling abroad if Alipay were more widely accepted among foreign merchants.
In the year ending February 2018, almost 1.4 million Chinese tourists visited Australia, injecting $10.4 billion into the economy (in the year ending December 2017). This is predicted to rise to $13 billion by 2020.