Malaysia has experienced a significant rise in tourism and economic activity, thanks in part to the seamless integration of Alipay+ QR payment systems. This integration allows travelers to use their home e-wallets through Alipay+ by simply scanning DuitNow QR codes. The initiative, a collaboration between Payments Network Malaysia Sdn Bhd (PayNet) and Ant International, has opened new economic opportunities for local businesses and fueled a substantial increase in revenue.
Economic Benefits for Malaysian SMEs
Revenue Growth and Merchant Opportunity
In its first full year, the integration of Alipay+ with DuitNow QR has resulted in a notable increase in revenue for Malaysian merchants. In December 2024 alone, Malaysian SMEs have seen a six-fold increase in revenue compared to the same period in 2023, demonstrating the success of this payment arrangement. With Alipay+ accounting for over 80% of cross-border inbound QR payments, the impact on local businesses is clear. This arrangement has allowed small and medium-sized enterprises to tap into a previously underutilized market, creating new streams of income and enhancing their financial stability.
The widespread adoption of Alipay+ has been a game-changer for Malaysian SMEs, especially as cross-border payments become more seamless. With travelers from countries such as China, Hong Kong, Thailand, and Singapore using Alipay+ to make payments, the volume and frequency of transactions have seen substantial growth. In fact, the number of Alipay+ transactions on DuitNow QR recorded a 50% quarter-on-quarter increase in 2024. This growth indicates a strong and ongoing demand for such payment methods, fostering optimism among local business owners and stakeholders.
Facilitating International Payments
The integration of Alipay+ with DuitNow QR touchpoints offers travelers a hassle-free payment experience, which is crucial for a thriving tourism industry. With 2.5 million DuitNow QR points available across Malaysia, visitors can make quick and secure payments by simply using their home e-wallets. This convenience eliminates the need for currency exchange and reduces the risk of carrying large amounts of cash while traveling. Consequently, this integration has contributed significantly to making Malaysia a more attractive destination for international travelers.
From major urban centers like Kuala Lumpur and Penang to tourist hotspots like Melaka and Johor Bahru, the convenience of Alipay+ is accessible nationwide. This ease of payment is particularly welcomed by tourists from 10 countries and regions, including Mongolia, the Philippines, and South Korea. Ensuring that these visitors can use their familiar payment methods has undoubtedly enhanced their travel experience and encouraged spending, thereby bolstering the country’s tourism revenue.
Impact on Tourism Numbers
Visitor Growth and Targets
Tourism Malaysia reported that over 25 million visitors arrived in the country in 2024, with an ambitious target of 35.6 million visitors for the Visit Malaysia 2026 campaign. The substantial increase in tourism numbers can be partially attributed to the ease of making payments using Alipay+. The familiarity and convenience offered by Alipay+ have made Malaysia more accessible and appealing to international tourists. The enhanced payment infrastructure has also been a vital factor in achieving the Year 2024 tourism target and will likely continue to support the growth trajectory towards the Visit Malaysia 2026 goals.
As more travelers opt for contactless and digital payment solutions, the ease of paying with Alipay+ apps has seen a five-fold year-on-year increase in Quarter 4 of 2024. This growth is primarily concentrated in key cities such as Kota Kinabalu, highlighting the expanding acceptance of digital payment solutions across various regions. Malaysian merchants, especially in the tourism industry, recognize this trend and have adapted their payment systems accordingly to meet this growing demand.
Enhancing Traveler Experience
The partnership between PayNet and Ant International to facilitate cross-border payments using Alipay+ has proven to be a critical factor in making Malaysia a preferred destination for tourists. By streamlining the payment process, travelers enjoy a smoother and more enjoyable experience, allowing them to focus on exploring the beauty and culture of Malaysia without financial hassles. This partnership is not only driving tourist numbers but also fostering favorable impressions of Malaysia.
Gary Yeoh, PayNet’s Chief Marketing Officer, emphasized the company’s commitment to developing an open and seamless payment ecosystem that benefits local businesses. Similarly, Edward Yue, Ant International General Manager for Southeast Asia, Australia, and New Zealand, highlighted the partnership’s role in promoting inclusive growth and positioning Malaysia as a prominent tourism and shopping destination. Their collective efforts have succeeded in removing traditional financial barriers faced by international travelers, thus stimulating both tourism and local commerce.
Future Outlook for Malaysian Tourism
Long-Term Economic Impact
The successful integration of Alipay+ QR payments with DuitNow QR codes paints a promising picture for Malaysia’s tourism and economic landscape. As this partnership continues to flourish, the positive economic impact on small and medium-sized enterprises will likely grow further. Such collaborations highlight the importance of embracing advanced financial technologies to drive both local and national economic progress. The sustained growth in Alipay+ transactions stands as a testament to the efficacy of these innovations in enabling seamless cross-border payments.
Tourism Malaysia’s goal of attracting 35.6 million visitors by 2026 is appearing more attainable with each passing year. The widespread adoption of digital payment solutions like Alipay+ ensures that travelers can enjoy more of what Malaysia has to offer without the distraction of financial complications. This evolution in digital payments is an essential step for a country looking to maintain its status as a leading global tourism destination.
Continued Innovation and Growth
Looking ahead, the continued collaboration between PayNet and Ant International will be crucial in driving further innovations in the payment sector. As technological developments continue, new opportunities will arise to enhance the travel experience for international visitors in Malaysia. The aim will be to extend these seamless payment solutions to even more regions and touchpoints, ensuring that visitors can enjoy these benefits, whether they are in bustling cities or more remote locations. The introduction of these innovative technologies will likely result in new ways to attract and serve tourists, thereby solidifying Malaysia’s position on the international stage.
With these advancements, Malaysia is poised to set new benchmarks in tourism and financial technology. As local businesses become more adept at leveraging these technologies, the resulting economic growth will provide a robust foundation for future endeavors, ensuring the country remains a top destination for travelers worldwide.
Conclusion
Malaysia has seen a marked increase in tourism and economic activity, greatly boosted by the seamless inclusion of Alipay+ QR payment systems. This smart integration enables travelers to utilize their own e-wallets via Alipay+ by simply scanning DuitNow QR codes, making transactions easy and efficient. The initiative is a joint effort between Payments Network Malaysia Sdn Bhd (PayNet) and Ant International, which has successfully unlocked fresh economic opportunities for local businesses. As a result, this has led to a significant surge in revenue. Additionally, Alipay+’s widespread acceptance has made it more convenient for international visitors, thereby encouraging higher spending at local shops, restaurants, and attractions. Enhanced ease of payments directly translates to increased sales and supports Malaysia’s thriving tourism industry, underscoring the country’s appeal as a travel destination. This collaboration notably highlights the positive impact of advanced payment technologies on local economies.