Alipay’s 2018 Lunar New Year campaign
Alipay has clear intentions with this year’s Chinese New Year campaign, the Chinese giant has been busy in 2017 winning over new merchants and creating Chinese Payment Zones. Fast forward one year ahead and their key efforts will be in increasing awareness of the merchants’ acceptance of Alipay amongst potential current and potential Users.
For Alipay merchants, this is a no brainer. Their outlay is pretty much capped at with the associated merchant fee as per any other transaction, and for them, this is an incremental benefit. Alipay is planning to invest heavily in the Australian market to ensure User uptake and will be marketing the merchants for free. We predict that Australian merchants will see a significant increase in traffic and usage during this key trading period and beyond.
There will be two main campaigns to drive this over the 2018 Lunar New Year period:
- Instant price reductions
- Huabei (花呗) cashback
Alipay’s Instant Price Reductions
Users will receive instant price reductions between 5RMB and 2018RMB (as of 6th February 2018, an AU$ equivalent of $408.28) when completing a transaction. Each User can enjoy this offer up to 3 times from now to the end of the campaign period, the 31st March 2018, but each eligible transaction has to be with a different merchant. (Note: A separate arrangement is made for transactions within Australian Airports – please scroll down for more information on this.)
Alipay is working closely with all merchants to ensure that Users are aware of this promotion and added benefit that Alipay is providing.
Alipay’s Huabei (花呗) cashback
Users will receive a randomised instant cashback up to 200RMB (as of 6th February 2018, an AU$ equivalent of $40.48) per month, just simply by paying via Alipay and Huabei. This is applicable for the first 5 transactions paid each month via Huabei for the months of February and March 2018. On top of that, Users will also go into an additional pool where they’ll be able to win an extra 100RMB (as of 6th February 2018, an AU$ equivalent of $20.24) for each transaction. This campaign is live from the 1st of February 2018 to the 31st March 2018.
Alipay’s Huabei (花呗)
Huabei is pretty much unknown to a non-Chinese-speaking Australian. Launched in April 2015, Huabei is an online credit facility offered in-house by Ant Financial (Alipay’s holding company), similar to Paypal Credit. Huabei can be linked to Alipay and also used with online retailers such as Amazon China, Xiaomi, DJI, Dianping, Meituan, Youku-Tudou etc. Alipay users can sign up to Huabei in just a few clicks. There are now more than 10 million Huabei users and 90% of vendors on Alibaba’s Taobao and Tmall platforms signed up to accept Huabei within 20 days of its official launch.
In 2017’s Double 11 shopping spree, more than 60 million payments for purchases were made through Huabei, representing 8.5% of the total payments Alipay processed on the day. Credit limits for the online credit facility is generated automatically by Sesame, the in-house developed credit scoring system, which uses an algorithm that determines a User’s risk profile based on Users’ personal and purchase data that Alibaba has been collecting for years.
Alipay always has dedicated Huabei campaigns for each major festival and shopping campaigns, and Users enjoy additional benefits, cashback and a robust loyalty program.
Australian Airports: Alipay hubs
Australian Airports are transit hubs for all the inbound Chinese travellers and local Chinese-speaking travellers. This important touchpoint is a focus of Alipay, as Alipay has a separate arrangement for all Australian Airports this Lunar New Year.
The campaign is identical to both campaigns mentioned above:
- Instant price reductions
- Huabei (花呗) cashback
The difference is that there is a separate pool for Australian Airports for both campaigns. All metrics and limits are the same.
Image credit: Sydney Airport Corporation Limited
For example, if a User spends up to 3 times in various merchants based in Sydney’s CBD, technically this User has already maxed out his/her limit in this Lunar New Year campaign. However, if this User goes through Sydney Airport’s new shopping district and transacts payments using Alipay, this user can benefit from another 3 instant price reductions or the Huabei cashback on top of what they’ve received with other Australian Merchants.
This initiative shows Alipay’s focus on Australian Airports and building Chinese payment hubs for inbound Chinese tourists and Chinese-speaking locals.
How does Alipay market your business to their users?
Alipay has started communicating these benefits to their Users since mid January this year. The FinTech company has invested in paid social media, outdoor advertisements, in-store promotions and online coupons to distribute the message and reach out to local Chinese-speaking Australians and the inbound tourists of the benefits of spending with Australian merchants during the Lunar New Year period and beyond.
Alipay also announced a deal with Cabcharge on this week that allows Alipay to be accepted by more than 20,000 taxis around the country. Alipay typically has custom campaigns with larger merchants on top of the general Lunar New Year activations.
Alipay was founded in China by Alibaba Group and founder Jack Ma in February 2004. The third-party mobile and online payment platform now services more than 8,000 merchants in Australia and New Zealand. Read more about CNPay’s relationship with Alipay.
Established in Sydney in 2016, CNPay have quickly grown and established branch offices in Hong Kong, Shanghai and several other countries throughout Asia to provide a seamless Chinese payment system globally.
Market your business and be Chinese-ready with CNPay. To find out how you can enable WeChat Pay for your business, contact us.