PayNet & Ant drive SME growth through Alipay+ collaboration

Payments Network Malaysia (PayNet) and Ant International have fostered significant economic growth for Malaysian SMEs in 2024 through their collaboration, with Alipay+ accounting for over 80% of cross-border inbound QR payments via DuitNow.

This strategic partnership has played a pivotal role in driving the profitability of Malaysian merchants, especially during the peak travel season in December 2024, where there was a sixfold increase in revenue compared to the same period in 2023.

Alipay+, introduced in Malaysia in October 2023 as part of a collaboration with PayNet, facilitates cross-border payments and digital services, allowing QR payments from international travellers to be effortlessly processed by Malaysian SMEs through DuitNow QR. Since its launch, the number of Alipay+ financial partners has expanded to 15, significantly increasing the customer base of Malaysian businesses.

The Alipay+ partners operational in Malaysia include Alipay, AlipayHK, MPay, TrueMoney, KBank, Changi Pay, Hipay, HelloMoney, GCash, Tinaba, Kaspi, BigPay, Kakao Pay, Naver Pay, and Toss.

Gary Yeoh, Chief Marketing Officer at PayNet, said, "As Malaysia's national payments network, PayNet is committed to building an open and seamless payment ecosystem that enables businesses to thrive. Our partnership with Ant International has significantly enhanced cross-border payment acceptance for local merchants, helping them tap into a growing wave of global travellers. With Alipay+ as a key driver, DuitNow QR is empowering SMEs to compete on an international scale, reinforcing Malaysia's position as a premier travel and shopping destination."

The service from Alipay+ enables tourists from 10 countries and regions to use their native payment applications at more than 2.5 million DuitNow QR touchpoints throughout Malaysia, simplifying the payment process for international visitors. The 2024 year showed an average quarter-on-quarter increase of 50% in Alipay+ transactions on DuitNow QR.

Edward Yue, General Manager for Southeast Asia, Australia and New Zealand at Ant International, commented, "We have always believed in the power of travel, for connectivity, cultural exchange and as an economic driver. With Alipay+, we offer local businesses a gateway to global customers, driving more inclusive growth in local communities. PayNet has built the infrastructure and partnerships to enable this, and we're proud to collaborate and bring international users into this ecosystem. We're just getting started, and in the years ahead, we can make an even greater impact together, positioning Malaysia as a global tourism hub and generating more growth for Malaysian businesses."

According to Tourism Malaysia, over 25 million tourists visited the country in 2024, with targets set for 35.6 million by 2026 under the Visit Malaysia 2026 campaign. This initiative seeks to enhance tourism revenue, reinforce the country's global tourism standing, and bolster the sector's contribution to the national GDP.

The integration with DuitNow offers travellers a seamless payment journey, which has become increasingly popular with an observed fivefold increase in Q4 2024 of visitors using Alipay+-enabled apps. Key tourist destinations include Kuala Lumpur, Malacca, Penang, Johor Bahru, and Kota Kinabalu.

Malaysia is recognised for its rich cultural and culinary offerings. Visiting tourists often engage with local culinary delights such as kopitiams, bak kut teh, satay, and local confectionery. The nightlife, alongside cultural hotspots like the Baba and Nonya Heritage Museum and Sun Yat Sen Museum, also draws significant visitor interest.

In addition to cultural attractions, there is a rising interest in outdoor and wellness pursuits, including sports, recreation camps, diving, and fitness centres. Convenience is supported by the high-frequency use of DuitNow QR at convenience stores, pharmacies, supermarkets, and vending machines.

As PayNet and Ant International continue to enhance their collaborative efforts, they aim to expand merchant connectivity and engage in marketing and educational initiatives to drive further growth for Malaysian SMEs.