Alipay vs. Wise: Application Scenarios Comparison in Chinese Cross-Border E-Commerce

Image Source: pexels

In 2024, China’s cross-border e-commerce import and export volume reached 2.63 trillion RMB, up 10.8% from the previous year. In this rapidly expanding market, Alipay and Wise serve different user types. Alipay is better suited for Chinese local platforms and consumers, while Wise helps businesses and individuals efficiently manage multi-currency fund flows. When choosing an international remittance tool, users should focus on key factors like processing speed, fees, supported platforms, and fund compliance.

Key Points

• Alipay is suitable for Chinese local consumers and cross-border e-commerce sellers, supporting multi-currency settlements and convenient withdrawals, facilitating the conversion of foreign currency income to RMB and withdrawal to Hong Kong bank accounts.
• Wise specializes in international remittances, supporting over 50 currencies and multi-currency accounts with low fees and fast processing, ideal for businesses and individuals with frequent multi-currency transactions.
• Wise offers fast processing, with most funds arriving within 24 hours, suitable for cross-border e-commerce businesses with high fund flow efficiency needs.
• When selecting a payment tool, consider business size and needs; B2B businesses are better suited for Wise, while B2C businesses and micro-sellers can flexibly use either based on market and fund flow needs.
• Both Alipay and Wise strictly adhere to financial compliance, ensuring fund safety, allowing users to use them confidently and improve cross-border e-commerce fund management efficiency.

Features and Positioning

Alipay Features

Alipay provides users with diverse digital payment and service functions. These include:

1. Payment Function
   Users can initiate payment requests through Alipay, and the system generates transaction vouchers to ensure secure and efficient transactions. The platform also handles payment callbacks and exception statuses, ensuring smooth fund flows.
2. Map and Location Services
   Alipay supports retrieving user geolocation and displaying dynamic maps within the app. Users can utilize route planning and navigation functions, facilitating high-interaction scenarios like food delivery and local restaurant recommendations.
3. User Authorization Module
   The platform allows users to authorize access to personal information, enabling merchants to offer personalized services and enhance the overall experience.

These functional modules collectively meet user needs in diverse scenarios such as cross-border e-commerce and lifestyle services. Alipay not only supports online shopping payments but also facilitates international merchants entering the Chinese market.

Wise Features

Wise focuses on providing efficient international remittance services for individuals and businesses. The platform uses real market exchange rates with transparent fees, suitable for users needing multi-currency fund flows. Wise allows users to freely exchange between different currencies and supports multi-currency account management. Users can quickly transfer USD, EUR, and other currencies to Hong Kong bank accounts or other countries’ bank accounts via Wise. Wise’s processing is fast, typically completing within 1-8 hours, with fees significantly lower than traditional banks.

Wise, with its focus on cross-border remittances and multi-currency accounts, helps users reduce international transfer costs and improve fund flow efficiency. In contrast, Alipay emphasizes Chinese consumer payment experiences and local lifestyle services.

Cross-Border E-Commerce Application Scenarios

Image Source: unsplash

Alipay Application Scenarios

Alipay offers diverse applications in cross-border e-commerce. Many third-party payment platforms, such as WorldFirst, Payoneer, and PingPong, often use Alipay as a withdrawal channel. Users can withdraw platform account balances to Hong Kong bank accounts via Alipay or complete fund transfers through wire transfers. Alipay’s role in cross-border e-commerce primarily involves fund flows and withdrawals.

• Common uses include:
  • Serving as a withdrawal channel for third-party payment platforms, helping sellers convert foreign currency income to USD and withdraw to Hong Kong bank accounts.
  • Supporting payments on cross-border e-commerce platforms like AliExpress, Amazon (select sites), Lazada, and Shopee, with the system automatically converting RMB to USD or other currencies for settlement.
  • In some countries and regions, users can use Alipay for QR code payments, with backend settlement in USD, suitable for travel consumption and overseas shopping scenarios.

Alipay supports multiple currency settlements, including USD, EUR, GBP, HKD, SGD, and JPY. User accounts are denominated in RMB, with the system automatically handling foreign currency conversions during payments. Alipay does not support holding foreign currency balances or direct foreign currency withdrawals. Businesses needing large USD transactions should opt for professional service platforms.

Alipay’s main advantages in cross-border e-commerce are convenient withdrawal channels and multi-currency settlement capabilities, suitable for sellers needing to quickly convert foreign currency income to RMB and withdraw to Hong Kong bank accounts.

Wise Application Scenarios

Wise provides efficient international payment solutions for cross-border e-commerce users. Wise supports remittances in over 50 currencies, covering more than 70 countries and regions. Users can hold over 40 currency accounts and exchange them anytime, facilitating cross-border trade and fund management. Wise is suitable for various international e-commerce scenarios, helping sellers and buyers manage multi-currency fund flows.

Wise offers flexible settlement options. Users can transfer funds directly to Hong Kong bank accounts or to Alipay accounts for real-time settlement. Small-amount transfers to Alipay require only the recipient’s Alipay account and verified name for quick settlement. For large amounts, Wise supports transfers to Hong Kong bank accounts with lower fees, typically taking 2-3 business days.

Typical applications of Wise in cross-border e-commerce include:

• Sellers receiving USD, EUR, and other currency payments from global buyers through Wise, with flexible conversion to needed currencies.
• Buyers using Wise to pay overseas merchants, enjoying real-time exchange rates and low fees.
• Wise, in collaboration with Alipay, supports overseas users transferring funds to Chinese Alipay accounts, suitable for small-amount, fast settlement needs.

Wise, through its multi-currency accounts and flexible settlement methods, helps cross-border e-commerce users reduce remittance costs and improve fund flow efficiency. Wise is ideal for businesses and individuals needing frequent international transactions and multi-currency management.

Advantages and Disadvantages Comparison

Image Source: unsplash

Fees and Exchange Rates

Fees and exchange rates directly impact cross-border e-commerce businesses’ profits. Alipay and Wise have distinct characteristics in this regard. Alipay’s fees typically range from 0.5% to 1%, depending on the platform. For example, eBay and Walmart charge 0.5%, Wish charges 0.75%, and Amazon ranges from 0.5% to 1%. These fee structures are transparent, making cost estimation easier for merchants. Wise uses the market mid-rate with no hidden fees, supporting over 40 currencies and 160 countries. Wise’s multi-currency accounts and international remittance functions are flexible, suitable for diverse international payment needs.

Wise excels in fee transparency. The platform offers low-cost international transfers with clear and transparent fee structures. Users can track fees in real-time, access detailed fee reports, and view exchange rate information. Businesses can also use fee analysis tools to optimize payment methods. These measures help users clearly understand the cost structure of each transaction, reducing management complexity.

Processing Speed

Processing speed impacts business fund turnover efficiency. Wise’s remittance processing is fast, typically instant, with most funds arriving within 24 hours. Wise also supports transfers to Chinese Alipay and WeChat accounts, ideal for users needing quick collections. Alipay’s processing time varies by platform and scenario. Some withdrawals to Hong Kong bank accounts may take 1-2 business days. For small-amount payments, Alipay generally achieves faster settlement, but large-amount settlements may be slower than Wise.

Wise’s processing speed advantage is significant, making it suitable for cross-border e-commerce businesses with high fund flow efficiency needs.

Compliance and Security

Compliance and security are foundational to cross-border payments. Both Alipay and Wise strictly adhere to financial regulatory requirements in relevant countries and regions. Alipay recently upgraded its payment services for overseas users, allowing them to bind foreign bank cards and use Alipay for offline consumption and transportation in China. The platform collaborates with Bank of China and clearing institutions, leveraging Alipay+ cross-border payment technology to enhance payment convenience. These adjustments indirectly improve the payment experience and compliance for cross-border e-commerce users.

Wise also prioritizes compliance management. The platform supports multi-country regulations, employing multi-factor authentication and fund security measures. Users must upload identification documents during account opening and transfers, with the platform conducting compliance reviews for each transaction. Wise’s compliance system ensures fund safety and reduces cross-border transaction risks.

User Experience

User experience determines the usability and satisfaction of payment tools. Wise and Alipay each have unique strengths. Wise’s account opening process is simple, requiring only ID documents and a selfie, with a Chinese interface and fully online operations. Wise supports multi-currency accounts, allowing users to track transfer progress anytime. Fees are low and transparent, with exchange rates close to the market mid-rate. Users can transfer funds to Hong Kong bank accounts or Alipay accounts via Wise, offering flexibility and convenience.

Alipay excels in Chinese local lifestyle and consumer payment scenarios. The platform supports multiple payment methods, allowing users to bind bank cards and enjoy QR code payments and online shopping. Recent upgrades allow overseas users to bind bank cards for use in China, with transactions under 200 RMB fee-free and a 3% fee for amounts above. These changes enhance payment convenience for cross-border e-commerce users.

Wise excels in multi-currency account management, fee transparency, and processing speed. Alipay has unique advantages in Chinese local consumption and lifestyle service scenarios. Cross-border e-commerce businesses can choose the appropriate payment tool based on their needs.

Selection Advice

B2B Businesses

B2B businesses often face challenges in cross-border fund flows. Issues like difficult account opening, high fees, slow collections, delayed fund arrivals, and high transfer fees impact operations. Traditional international wire transfers are complex and inefficient, struggling to meet small-amount, high-frequency cross-border needs. Some businesses also face risks of account closures or freezes, with significant payment security risks, including fraud and money laundering.
For these businesses, Wise is better suited for large-amount, frequent international transactions. Wise supports multi-currency accounts with transparent fees and fast processing, effectively reducing fund flow costs. Businesses can transfer USD and other currencies directly to Hong Kong bank accounts via Wise, improving turnover efficiency. Alipay is suitable for businesses needing collections or withdrawals in the Chinese market but is less flexible for large international settlements.

B2C Businesses

B2C businesses should focus on multi-currency account capabilities, supported platform numbers, withdrawal fees, exchange rate benefits, processing speed, and account management convenience when choosing international collection solutions. Major platforms like AliExpress and Lazada support Alipay collections, suitable for businesses targeting Chinese consumers. Wise covers over 120 global e-commerce platforms and 40+ payment gateways, supporting major currencies like USD, EUR, GBP, and JPY.
For B2C businesses managing multiple stores, needing frequent withdrawals, and prioritizing low fees and exchange rate benefits, Wise’s multi-currency accounts and transparent fees are advantageous. Alipay is ideal for businesses focused on the Chinese market needing quick withdrawals to Hong Kong bank accounts. Businesses can choose based on their operational focus and fund flow needs.

Micro-Sellers

Micro-sellers face issues like limited financial services, difficulties in opening overseas accounts, long settlement cycles, and high fees for multiple conversions. Fund management processes are inefficient, cash flow pressures are high, and operations are complex. Wise offers micro-sellers convenient multi-currency accounts and low-fee international remittances, supporting fast collections and flexible conversions. Sellers can transfer USD and other currencies directly to Hong Kong bank accounts, reducing conversion frequency and fees.
Alipay is suitable for sellers needing to quickly withdraw foreign currency income as RMB for use in the Chinese market. For high-frequency, small-amount transactions, Wise’s processing speed and fee advantages stand out. Micro-sellers should pair Alipay and Wise based on fund flow needs and primary sales markets for efficient cross-border e-commerce fund management.

Cross-border e-commerce businesses should consider transaction scale and target markets when choosing international remittance solutions. Small-amount, high-frequency transactions favor platforms with fast processing and multi-currency support, while large-amount transactions prioritize compliance and fund security. Wise is suitable for businesses and individuals needing multi-currency management and fast processing, while Alipay excels in Chinese market withdrawals and consumption scenarios. The table below compares mainstream payment platforms in processing speed, currency support, and compliance credentials:

In the future, cross-border e-commerce international collection methods will become more diverse, allowing businesses to choose flexibly based on needs, enhancing fund flow efficiency and achieving compliant global expansion.

FAQ

Which currencies do Alipay and Wise support?

Alipay primarily supports major currencies like USD, EUR, and GBP. Wise supports over 50 currencies, allowing users to freely exchange and manage multi-currency funds in their accounts.

How long does it take for Wise to transfer to Hong Kong bank accounts?

Wise typically completes transfers within 1-8 hours. Most funds in USD or other currencies arrive within 24 hours, depending on bank processing speeds.

Are there fees for Alipay withdrawals to Hong Kong bank accounts?

Alipay charges 0.5%-1% fees for withdrawals to Hong Kong bank accounts. Fees vary by e-commerce platform, and users can check specific rates in advance.

Which is safer, Wise or Alipay?

Both Wise and Alipay adhere to strict financial regulations. Wise uses multi-factor authentication, and Alipay collaborates with Bank of China, ensuring fund safety and preventing fraud and money laundering risks.

How should cross-border e-commerce sellers choose between Alipay and Wise?

Sellers should choose based on business needs. Wise is better for multi-currency management and fast processing. Alipay is more convenient for Chinese market-focused businesses withdrawing to Hong Kong bank accounts.

The comparison between Alipay and Wise in cross-border e-commerce clearly shows the unique advantages of each tool, but neither fully addresses the common pain points in global business. From high fees and opaque exchange rate spreads to complex registration and transfer processes, these issues can hinder your global expansion. BiyaPay was created to integrate and optimize this process. We support the conversion between various fiat and digital currencies, allowing you to easily complete global remittances with a remittance fee as low as 0.5% and same-day delivery. You don’t need a complex overseas bank account to invest in both U.S. and Hong Kong stocks on one platform, and you can use our real-time exchange rate query to seize the best conversion opportunities. Say goodbye to the hassle of traditional remittances, and register with BiyaPay today to start your smart investment journey.