This will allow the large number of visitors coming from China to enjoy easy payment methods that they are familiar with and provide business opportunities for local merchants in Japan. In addition, efforts will continue to extend Alipay coverage throughout Japan as one of the most popular tourist destinations for travelers from China and other Asian countries.

"Alipay is dedicated to enhancing user experience and creating value for small and micro businesses through technology. The Tokyo Olympics and the hike in visitors that this will bring is a good target for us, to ensure that the Alipay platform serves as a bridge between inbound visitors and local merchants here in Japan. It is also important that we are collaborating with partners not only in the metropolitan areas and big cities, but also in smaller cities with popular tourist attractions. We look forward to working with a wide range of Japanese partners to achieve this ambition, and, in doing so, contribute to driving the local economy in areas across Japan," said Eric Jing, Executive Chairman and CEO of Ant Financial.

The number of Chinese tourists visiting Japan continues to increase year on year. Close to 7.35 million people visited Japan in 2017 with a y-o-y growth rate of 15.4% (※ 1), and the inbound consumption from this group reached 1.6 trillion yen (US$14.3 billion, ※ 2). This trend is likely to continue and the Olympic Games in 2020 are expected to be a peak with visitors attracted to the international sporting spectacle as well as the country’s famous locations.

According to Alipay's statistics, Chinese visitors’ spending through mobile payment is also growing rapidly. From the beginning of July through the end of August 2018, the average consumption of each Chinese Alipay user in Japan reached nearly 3,900 yuan (US$569). This average spending represented an increase of 52% compared with the previous year, and the total transaction volume grew by 165%.

Alipay is expanding its services across Japan, reflecting the needs of increasingly adventurous Chinese tourists. Specific collaborations to date with regional banks such as Hida Credit Union and Kyoto Shinkin Bank, have allowed Alipay to make its payment services available in tourist spots and shops outside of the major cities. To further expand its merchant network, Alipay is also seeking to work with more small and micro merchants by cooperating with local mobile payment platforms in Japan such as Line Pay and Paypay.

Alipay, which currently has over 700 million active users in China, was introduced to Japan to provide services to Chinese visitors at local merchants in December 2015 and is currently available in all 47 prefectures across the country. It is available in a wide range of outlets to support tourism including airports, department stores, restaurants and popular attractions.