Alipay has received a second e-money license in Luxembourg. With this license, Alipay can serve the European market and is a hedge against Britain’s exit from the European Union, enabling it to operate across borders in the event of a hard Brexit.
The launch of the new entity, called Alipay (Europe) Limited S.A., was officially announced by Pierre Gramegna, the Minister of Finance in Luxembourg, in Hong Kong.
Alipay is the biggest payments firm of China and is available in 20 countries across Europe. The mobile payment platform is said to have signed deals with over 100 banks and 40 digital wallets companies in Europe.
With the new PSD2 license, Alipay can serve customers across Europe, but also connect users from China with online and offline retailers that are located in EU countries.
“Alipay’s presence is a welcome addition to Luxembourg’s financial ecosystem and will further consolidate its position as a leading European hub for FinTech and e-commerce,” Pierre Gramegna, the Minister of Finance in Luxembourg commented. “It will considerably contribute to the strengthening ties between Europe and China.”
The company was active in six European countries in 2017, and is present in a total of 20 European countries at the end of 2018.
“You can’t be successful if you’re playing defence. The payments market is changing rapidly in Europe,” says Li Wang, Head of EMEA at Ant Financial. “We’ve noticed that consumers want something different and that is what drives innovation.”