Vodafone taps Chinese tourists with Alibaba payments app deal

The Age
October 31, 2018
Vodafone has quietly signed a deal with Alibaba’s payment company Alipay in a bid to tap into the lucrative Chinese tourism market by accepting the highly-popular platform’s payments.
Vodafone Hutchison Australia has quietly signed a deal with Alibaba-founded payment company Alipay in a bid to tap into the lucrative Chinese tourism market.
Thousands of customers have already used a Vodafone discount promoted through the Jack Ma-created payment app since its introduction in stores on October 8. Alipay was spun off from Alibaba in 2011.
Vodafone is the first Australian telco to provide an option to pay using the Alipay option, actively used by 520 million people in China, which is considered similar to WeChat Pay, Apple Pay and PayPal.
The deal allows Vodafone to advertise its pre-paid SIM cards to Chinese visitors to Australia within the app itself, with special deals for those using Alipay already launched. Now, those using the payment method will get a 50 per cent discount on a prepaid starter pack using a digital coupon.
Tourists will be able to use a QR code to pay in-store at 110 of Vodafone’s retail stores across the country. Vodafone has more than 500 retail stores across the country, with the ones accepting the Chinese payment option predominantly located in capital cities, major international airports and larger shopping centres.
In 2016, there were 1.2 million visitors to Australia from China with a total spend of $9.2 billion, Tourism Australia data shows. The average stay was 43 nights, with the median nine nights. Sydney, Melbourne and the Gold Coast are the most-visited locations by those on holiday.
Telecommunications companies are fighting for ways to compete with each other and attract new customers, with mobile competition at all-time highs in Australia.
In the first week of operation, 5000 people signed up using the platform with 8000 offers redeemed to date.
Each transaction incurs a fee, which is paid to Alibaba. Vodafone will be paying this cost, making it a comparatively cheaper option for offshore visitors who can face substantial charges on credit cards and some payment methods.
Last year, Vodafone launched its “35 day prepaid plan”, which compares to typical 28-day expiry dates, to mark a point of difference with other telco pre-paid products.
Vodafone chief commercial officer Ben McIntosh said in a statement the telco’s plans offer “international calls to more destinations”.
“Alipay helps us continue to differentiate Vodafone as the number one choice for Chinese visitors to Australia,” Mr McIntosh said.
Alipay Australia and New Zealand country manager George Lawson said in a statement the telco “will now be able to communicate with a customer as soon as they land at an Australian airport to offer them a discount on a local SIM card or other services”