Sphere No.44 (Mar 2018)

China is a global leader in mobile payments and in China, Alipay is the leading e-wallet. It has now exploded in Hong Kong. Since May 2017, over 1,000,000 users have signed up to the Hong Kong version, AlipayHK, and can access 10,000 different merchant payment points. The numbers are rising quickly, and a closer look shows why. Delving into the Alipay app, one finds a great deal more than just payment. A whole life could be lived using it – ordering food (including groceries), paying for public transit and utilities, and even gifting Chinese red packets (money gifts given at Chinese New Year). Loans, insurance, targeted coupons and government services are all available and payable through the app. Local expertise Widespread adoption in one market doesn’t mean that bringing it to a new market can be done without serious consideration. Every market has its own characteristics and Hong Kong and China are no different in this respect. Each has its own consumer behaviour patterns and CKHH’s local expertise has been vital in helping create a local version of Alipay – AlipayHK. Canning Fok, Group Co-Managing Director of CK Hutchison says, “Through our many years of business experience, we hope to work together and make AlipayHK more widely adopted, bringing benefits and cheer to consumers and creating value for shareholders.” CKHH’s deep understanding of consumer behaviour, through A S Watson Group (ASW), 3 Hong Kong and HK Electric, gives them perspective and insight into how Hong Kong consumers think and behave. Jennifer Tan, CEO of Alipay Payment Services (HK) Limited, explains some of the differences between Alipay’s home market and that of AlipayHK. “For example, the use of QR codes is ubiquitous in China. In Hong Kong, they haven’t caught on in the same way. But as people realise their convenience and usefulness, they are using them more and more.” The Hong Kong version of the app will tie into CKHH companies – for example, providing an extra 20 per cent bonus on ASW’s MoneyBack programme, discounts on electricity bills and extra data on phone plans paid through AlipayHK. A SMART choice Since its introduction, AlipayHK has become a smash hit in Hong Kong. Ms Tan explains why the e-wallet service is a SMART choice for consumers, “SMART represents five major elements: Secure, Multiple Use Cases, Anywhere, Reward and Technology. We believe these five elements allow people to use their electronic wallet worry-free.” ‘Worry-free’ is important as any new mobile technology raises concerns about security and privacy. Regarding data security, AlipayHK will maintain strict divisions between datasets and their analysis to ensure that merchant partners can feel secure that their data is kept private. “We collect the absolute minimum amount of data required to complete the transaction. While the metadata provides insights, customer-specific spending information is held only by the merchant,” says Ms Tan. Ant Financial brings its technologies and other expertise to the new partnership, and CKHH brings management expertise, cultural knowledge and deep experience in the Hong Kong market. The joint venture is on track to make the Hong Kong version of Alipay more like the original – a lifestyle super app offering a wider and wider array of services – making it a perfect match for the Hong Kong consumer. << Sphere #44 2018 13 AlipayHK: The lifestyle game changer Canning Fok, CKHH Group Co-Managing Director (left), Eric Jing, Ant Financial CEO (right), and Jennifer Tan, CEO of AlipayHK (middle), celebrate the 1,000,000th subscriber milestone at the kick-off ceremony.