Transferwise, the London-based payments company announced to collaborate with the Chinese payment platform Alipay to offer its users money transfers to China. The main objective of this partnership is to expand into the lucrative market.
Further to this collaboration, transferwise’s 7 million-plus users can now send Chinese yuan in under 20 seconds from 17 countries to users of Alipay. The customers can transfer by adding in the recipient name and Alipay ID, which will allow the money to be transferred into the bank account linked to the recipient’s Alipay profile. At present Alipay serves more than 1.2 billion people worldwide including via its local e-wallet partners.
However, this could be a smart business move by TransferWise, which struggled to accelerate its customer base and increase transaction volume. According to a 2019 fintech report, China has been projected to be one of the top remittance recipient countries in the world, with £54bn expected to be sent back home by Chinese expats and migrants living abroad.
Kristo Käärmann, co-founder and CEO of TransferWise, said:
“Our newest partnership with Alipay has been one of the most requested features from our users since our expansion in Asia. Alipay functions as the primary payment method for more than a billion people in China and we are excited to be bringing instant international transfers to the fingertips of Alipay’s users. This also brings us one step closer towards our mission of Money without Borders, and is a continuation of our vision of making cross border payments instant, convenient, transparent and eventually free.”
Ma Zhiguo, Head of Global Remittances, Alipay, said:
“We look forward to working closely with TransferWise for global remittances, as we continue to explore new ways to apply our technology in order to benefit more people globally. We are committed to working with partners such as TransferWise, using innovative technologies to help global consumers gain access to inclusive financial services, creating greater value for society and bringing equal opportunities to the world.”
Overall, from the past few months, Alipay is the second wise partnership that TransferWise has announced. Back in November 2019, it joined forces with the London fintech, GoCardless, that lets customers pay via recurring bank payments which are known as Direct Debits in the U.K. GoCardless is used by more than 50,000 businesses worldwide, and thus this partnership saw its own functionality of foreign exchange powered by TransferWise.