NAB will soon accept Alipay as a payment method through its point-of-sale terminals as part of a new deal between the two finance companies.
The bank announced today it is testing the Chinese payment method with a small group of its business merchant customers in November, before a wider roll out to all its merchants’ point-of-sale terminals in early 2019.
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It’s the second deal Alipay has signed with an Australian bank, following a similar agreement with business-only bank Tyro in August and New Zealand bank BNZ which was announced in June.
CommBank has also signed a memorandum of understanding with Alipay and is working on integrating the payment method with its Albert Eftpos tablets.
Currently more than 10,000 Australia and New Zealand businesses, such as Chemist Warehouse, JR Duty Free and WHSmith accept Alipay in their stores. By partnering with banks, Alipay is able to accelerate its rollout across Australia by integrating its payment method in bank’s eftpos machines rather than negotiating with individual retailers.
The eftpos partnerships are aimed at making life easier for Chinese tourists and students by allowing them to use their preferred payment method.
NAB Executive General Manager of Deposit and Transaction Services, Shane Conway, said more than one million Chinese tourists visit Australia each year spending more than $11 billion.
“From next year, Aussie businesses with a NAB merchant terminal can offer Chinese tourists Alipay, their preferred QR code payment method, in-store, and unlock an opportunity to promote their businesses on Alipay’s marketing platform which has 870 million active users.
“By making China’s number one payment method available to NAB business customers, we’re enabling greater customer service and providing our business customers with access to this large tourism sector which is a win-win for everyone,”Conway said.
Alipay Country Manager of Australia and New Zealand George Lawson said the deal provides tens of thousands of merchants the ability to switch-on Alipay seamlessly and reduce friction at the point of sale for Chinese visitors, residents and students.
“China is now Australia’s largest tourism market accounting for 81 per cent of the growth in tourism spend in Australia in the last 12 months. Enabling seamless payments with Alipay represents a significant commercial opportunity for Australian businesses,” said Lawson.
“Beyond facilitating transactions, Alipay’s marketing platform drives incremental customers and revenue as it offers the best exchange rates and reduces the anxieties associated with using a foreign currency. We expect this deal will give NAB a significant advantage amongst business owners wanting to capitalise on the China opportunity.”