What is Alipay and How Does It Work in 2025

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Alipay is a mobile payment app and digital wallet that lets you pay, transfer money, and manage your finances using your mobile device. You can use Alipay in China and across the world for shopping, bill payments, and even storing digital IDs. This payment method stands out because it offers strong security with an escrow system, quick QR code payments, and real-time currency conversion. With over 450 million users, Alipay gives you convenience and helps merchants improve business using data analytics. You can enjoy seamless shopping and mobile banking on one platform.

Key Takeaways

• Alipay is a popular mobile payment app that lets you pay, transfer money, and manage finances easily using your phone.
• You can use Alipay worldwide in over 220 countries, supporting many currencies and working with millions of merchants.
• The app uses QR codes and an escrow system to make payments fast, safe, and trustworthy for both buyers and sellers.
• Alipay offers strong security with biometric login, encryption, and fraud detection to protect your money and data.
• Setting up Alipay is simple: download the app, register, verify your identity, and link your bank or credit card to start paying.

Alipay Overview

What is Alipay

You can think of Alipay as a third-party mobile payment app and e-wallet created by Alibaba Group. This app started as a way to help people shop safely on Alibaba’s e-commerce sites. Now, it has grown into the world’s largest mobile payment platform, serving over 1.4 billion users and 80 million merchants. You link your debit or credit cards to Alipay, which lets you make payments by scanning QR codes. The app uses an escrow system, so it holds your money until both you and the seller confirm the transaction. This makes your transactions safer and builds trust between you and merchants. Alipay works with many financial partners, including Mastercard and Visa, to support a wide range of payments.

Core Features

Alipay gives you many ways to manage your money and make payments. Here are some of the most popular features:

• Scan and pay with QR codes for quick in-store payments.
• Shop online on platforms like Taobao and Tmall.
• Pay utility bills, such as electricity, water, and gas.
• Send peer-to-peer money transfers to friends or family.
• Link both local and international credit or debit cards.
• Recharge your phone and pay for public transit.
• Use micro-investment tools and manage savings.
• Book movie tickets, hotels, and order food delivery.
• Enjoy strong security with multi-factor authentication and biometric login.
• Use Alipay’s Tour Pass to make payments as a tourist, even if you do not have a bank account in China.

You can make online payments by choosing Alipay at checkout, logging in, and confirming the transaction. For in-store payments, you either scan the merchant’s QR code or let the merchant scan your payment code. Transfers between Alipay wallets happen instantly, while transfers to bank accounts may take a few days.

Global Reach

Alipay is not just for users in China. You can use this payment platform in over 220 countries and regions. The app supports more than 50 currencies and works with over 12 million global merchants. Many stores in Europe, such as those in France, Italy, and Spain, accept Alipay because so many Chinese tourists prefer it. Alipay also partners with local e-wallets in places like Hong Kong, Singapore, Thailand, Malaysia, and South Korea. The table below shows some of the regions where you can use Alipay:

Alipay’s global network helps you make cashless payments and online transactions almost anywhere you travel. This wide reach makes Alipay a leading online payment system for both users and merchants around the world.

How Alipay Works

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Payment Process

You can use Alipay for both in-store and online payments. The process is simple and fast. Here is how you can make payments step by step:

1. Download the Alipay app from Google Play Store or Apple App Store.
2. Choose your language and register an account with your phone number and password. You will receive a code by SMS to verify your account.
3. Complete identity verification by submitting your personal details and identification documents.
4. Link your bank card by entering your card number, expiration date, CVV, and cardholder name. You may need to confirm with a code or a small temporary charge.
5. Set up a six-digit payment password and enable biometric authentication if your phone supports it.
6. In a physical store, open the Alipay app and scan the merchant’s QR code. The app will show the payment page. You confirm the amount and enter your password or use your fingerprint to finish the payment.
7. For online shopping, select Alipay as your payment method at checkout. Log in to your account and confirm the payment.
8. Alipay uses advanced encryption and authentication to keep your transactions safe.

You can also use Alipay for instant transfers and fund transfers to friends or family. These transfers happen quickly and securely within the app.

Note: Merchants can accept Alipay by integrating payment gateways, APIs, or plugins. They should test the payment process to make sure it works smoothly for customers.

QR Codes

Alipay uses QR codes to make mobile payments easy. You have two main ways to use QR codes:

1. Open the Alipay app and tap the “Scan” feature. Point your phone at the merchant’s QR code. The app will show the payment details. You confirm the amount and enter your password or use your fingerprint to complete the payment.
2. You can also generate your own payment QR code in the app. Tap the “Pay/Collect” feature. Show your code to the merchant, who will scan it to receive payment.

Merchants can create dynamic QR codes for each transaction or use a static code for repeated use. When you scan the code, the money moves from your Alipay account to the merchant’s account. Alipay uses password entry, biometric checks, and risk monitoring to keep your payments secure. You do not pay any fees for using QR code payments as a user.

Escrow System

Alipay protects you during online transactions with an escrow system. When you buy something online, Alipay holds your payment until you confirm that you received the goods and are satisfied. Only then does Alipay release the money to the seller. If you have a problem with your order, you can open a dispute. Alipay acts as a neutral party to help solve the issue before releasing the funds. This system helps build trust between buyers and sellers and keeps your money safe during online shopping.

Tip: Always confirm your order in the app once you receive your goods. This step ensures the seller gets paid and closes the transaction.

International Use

Alipay supports many international cards and offers special services for visitors to China. You can link cards such as Visa, Mastercard, JCB, Discover, and Diners Club. Some American Express cards may have limited support. After you finish real-name verification, you can add your foreign card to the app.

Alipay also provides a Tour Card for international visitors. This is a prepaid virtual card issued by the Bank of Shanghai. You can top up the card using your foreign debit or credit card. The Tour Card works for all Alipay services, including peer-to-peer transfers, booking train or flight tickets, paying utilities, and sending and receiving money. You can access the Tour Card through a mini-program in the app. You will need your passport for verification and to top up the card.

Here is a table showing the main features of international card support and the Tour Card:

You do not pay a fee to register for an Alipay account. When you use an international credit card for online purchases, Alipay charges a 3% service fee on the transaction amount for amounts above $28. This fee is usually paid by the seller. For the Tour Card, you pay a 5% top-up fee. Some banks may also charge foreign transaction fees. If you transfer money to a bank card or withdraw from your Alipay balance beyond free limits, you pay a 0.1% service fee (minimum $0.01). For public transport, single transactions under $28 are free, but a 3% fee applies to larger amounts.

Alipay makes mobile payments and online transactions easy for both local users and international visitors. You can pay in stores, shop online, transfer money, and manage your finances all in one app.

Who Can Use Alipay

User Eligibility

You can register for an Alipay account if you are a Chinese resident, a tourist, or an international user. The platform welcomes many types of users. Here is who can sign up:

1. Chinese residents can register using a Chinese phone number and ID.
2. Foreigners, including tourists and international users, can register with a phone number or email address.
3. You can choose your region during registration. If you live in China, select “China mainland.” If you live elsewhere, select your international region.
4. You can use a passport or other ID document for identity verification.
5. You do not need a Chinese phone number, but linking one improves your account’s features.
6. You can open a personal or business account.
7. Alipay supports English language settings for international users.

Account Setup

Setting up your Alipay e-wallet is simple. You start by downloading the app and choosing your language. Then, follow these steps:

1. Sign up using your phone number or email address.
2. Enter the verification code sent to you.
3. Set a secure password.
4. Complete identity verification with your passport or ID.
5. After verification, add a bank card. You can link international cards such as Visa, MasterCard, JCB, Discover, or Diners Club.
6. To add a card, go to the Bank Cards section, tap “Add Card,” and follow the instructions.

You can use your e-wallet for payments and transfers once you finish these steps. Only bank cards from China can top up your balance, but you can still link international cards for payments.

Note: Linking a Hong Kong bank card or an international card allows you to make payments, but you cannot use these cards to top up your Alipay balance.

Merchant Access

If you run a business, you can accept Alipay payments both in-store and online. Merchants can apply for an account online, which usually takes up to five business days. After approval, you can choose how to accept payments. You may use POS terminals, QR codes, plugins, or APIs. Customers can pay by scanning your QR code or you can scan their payment code. You do not need a bank account in China. Alipay settles transactions in your local currency. You only pay a commission on successful transactions.

Limitations

Alipay offers many features, but you should know about some restrictions:

You should review these limitations before you start using Alipay for your transactions.

Alipay Safety

Security Features

Alipay uses advanced technology to keep your account and transactions safe. You benefit from several layers of protection:

• The app shields you from Trojans and viruses that try to steal passwords.
• Digital certificates and electronic signatures help secure your account.
• Alipay uses a payment shield with electronic signatures and digital authentication stored in USB keys. This ensures your transactions stay confidential and unchanged.
• The Green Umbrella app creates a new six-digit passphrase every 30 seconds for extra authentication.
• Enterprise users get an electronic signboard for end-to-end security.
• Alipay stores your personal data in China and controls cross-border data transmission. The company erases or anonymizes your data after it expires.
• Security technologies and management systems prevent unauthorized access or changes to your information.
• A dedicated team handles personal information security and responds to emergencies.
• Fund supervision, risk monitoring, and transaction insurance protect your money.

You can trust that data encryption is active at every step. This keeps your payment security strong and your information private.

User Protection

You play a key role in keeping your Alipay account safe. The platform suspends or ends services if it detects high-risk payments or fraud. Merchants must follow strict rules and fix problems quickly. Alipay enforces laws and requires your permission for services like Auto-Debit. Payment limits help reduce risk. Merchants must remove customers with invalid accounts from Auto-Debit services.

If you hear about a data breach, you should take action. Change your password, enable two-factor authentication, and set up transaction alerts. Watch your bank accounts for strange activity. Log out of all devices and limit how much personal information you share. Report anything suspicious right away. These steps help you protect your account and keep your payment security strong.

Fraud Prevention

Alipay uses smart tools to stop fraud before it happens. The CTU intelligent risk control brain checks each transaction from many angles, such as your device, location, and behavior. Artificial intelligence and deep learning power this system. It uses over 800 rules and 100 models to spot fraud and abnormal activity in real time.

Here is a table showing some of the main fraud prevention measures:

Alipay also monitors for fraud 24/7. Digital KYC processes verify your identity quickly and spot fake IDs. Abnormal behavior detection helps catch suspicious activity. Data encryption works with these systems to keep your payment security at the highest level.

Benefits and Drawbacks

User Pros and Cons

You can enjoy many benefits when you use Alipay for your daily payments and shopping. The app makes your life easier and safer. Here are some of the main advantages:

• You do not need to carry cash or bank cards. Alipay lets you pay with your phone.
• Transactions use encryption and biometric login, so your money stays safe.
• You can pay for almost anything, including shopping, bills, and food delivery.
• Alipay supports quick remittances. You can receive money from overseas partners like WorldRemit.
• The app saves your personal information, so you only enter it once.
• Alipay is the most popular e-wallet in China. Many stores accept it for both in-store and online shopping.

However, you may face some drawbacks:

Tip: Always check if a store accepts Alipay before you start shopping, especially when you travel outside China.

Merchant Pros and Cons

If you run a business, accepting Alipay can help you reach more customers and grow your sales. The table below shows the main advantages and disadvantages for merchants:

You can use Alipay to attract more shoppers, especially those who prefer mobile payments. The platform gives you tools to promote your products and keep your business secure. However, you may need help with language or platform complexity.

Get Started with Mobile Payment App

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User Setup

You can set up your Alipay account in just a few steps. Follow this guide to start using the app for secure payments:

1. Download the Alipay app from the App Store or Google Play on your mobile device.
2. Register with your phone number and verify it using the code sent to you.
3. Choose your country or region and agree to the terms.
4. Select the Alipay International Version if you live outside China.
5. Go to the “Me” section and tap “Bank Cards.”
6. Tap “Add Card” and enter your bank card details or scan your card.
7. Set a payment password and confirm it.
8. Complete identity verification by entering your ID information as registered with your bank.
9. If you are a visitor, select the “Tour Pass” option and load an initial amount in USD.
10. Once you finish these steps, you can start making payments by scanning or showing your QR code.

Merchant Setup

If you want to accept Alipay payments at your business, you need to meet certain requirements. The table below shows the main steps for different types of merchants:

You can also use service providers to help with the application process, backend management, and tax support.

Onboarding Tips

To keep your Alipay account safe and easy to use, follow these tips:

• Enable two-factor authentication during setup for extra security.
• Set a strong password and never share it with anyone.
• Always check the merchant’s QR code before making a payment.
• Use biometric verification, such as fingerprint or face ID, for secure transactions.
• Watch your account for any unusual activity and respond to security alerts.
• Do not share your PIN, passwords, or QR codes with others.
• Trust Alipay’s encryption and risk monitoring to protect your bank details.

When you first use features like facial recognition, Alipay will ask for your consent. The app explains how it uses your data, so you can feel confident and in control. Taking time to learn about these features helps you use the mobile payment app safely and with peace of mind.

You can see why Alipay stands out as a top mobile payment app in 2025. Its user base is among the largest worldwide, with strong growth and high transaction volume. The table below shows how Alipay compares to other leading payment apps:

You benefit from secure payments, fast QR code transactions, and easy cross-border use. Merchants gain access to a broad customer base and simple integration. To get started, download the Alipay app, register, and link your card. For help, use the official guides in the app’s support center.

FAQ

How do you add a foreign bank card to Alipay?

You open the Alipay app, go to the “Bank Cards” section, and tap “Add Card.” Enter your card details, including card number, expiration date, and CVV. Complete identity verification with your passport or ID. Alipay supports cards like Visa, Mastercard, and JCB.

What should you do if you forget your Alipay payment password?

Tap “Forgot Password” on the login screen. Follow the prompts to reset your password. You will need to verify your identity using your registered phone number or ID. Set a new password and confirm it before you continue using your account.

Can you use Alipay for public transportation in other countries?

Yes, you can use Alipay for public transportation in many regions. The table below shows some supported areas:

Is there a fee for using Alipay with a foreign card?

Yes, Alipay charges a 3% service fee for each transaction over $28 when you use a foreign card. Some banks may also add a foreign transaction fee. Always check the latest exchange rates and fee details in the app before you pay.

While Alipay offers a convenient way to handle transactions within its vast ecosystem, the article highlights some key limitations, especially for international users, such as fees on foreign cards and top-ups, as well as a limited ability to top up the balance from outside China. This is where a truly global financial solution like BiyaPay can fill the gaps. We offer a platform that simplifies your international transactions, providing real-time exchange rate queries and conversions for various fiat and digital currencies with a remittance fee as low as 0.5%.

Whether you’re sending money to family, paying international suppliers, or managing a global investment portfolio, BiyaPay makes it secure and cost-effective. Our platform supports money transfers to most countries and regions worldwide, ensuring your funds get where they need to go quickly—often on the same day. Don’t let high fees and complex regulations stand in the way of your financial freedom. Use our Real-time Exchange Rate Calculator to see how much you can save, and open a new account in minutes to simplify your international financial life. You can start your journey with BiyaPay and enjoy seamless transactions globally.