NAPAS, Ant Financial Team Up To Bring Alipay to Vietnam

Coming off some absolutely incredible numbers from the Singles Day event in China, Alipay brought out yet another piece of big news that demonstrates its increasingly global focus. Its operator, Ant Financial, signed a memorandum of understanding (MoU) with the National Payment Corporation of Vietnam (NAPAS), which will bring Alipay operations to the country. That’s not the only effect it will have either, at last report.

Not only does the MoU establish Alipay for Chinese travelers, but it also represents what’s described as “…contributing to the establishment of a cashless society in Vietnam.” It’s one of the first times in recent memory—and it might actually be the first—that a country has literally come out and expressed actual plans to move to a cashless society. For the most part, this is the kind of thing that’s done by general consent and a move from the consumers in the region, not by specific plan.

The MoU further calls for Ant Financial and NAPAS to not only meet standards set by the State Bank of Vietnam, but also to engage in best practices set forth by international payment systems. The move brings Alipay to the country, and it also sets up a means for Vietnamese users to use NAPAS-branded systems with Alibaba-owned operations like Taobao.

NAPAS’ chairwoman, Nguyen Tu Anh, commented “As a member of the Asian Payment Network, NAPAS is always aiming to utilize the existing connections among the APN members to all of our Member Banks. The collaboration with Alipay is part of our strategy to expand international co-operation and to explore new payment solutions, allowing for a better connection between the banks, the merchants / service providers and the consumers.”

This isn’t exactly new territory for Alipay; it’s been steadily working to expand its footprint not only in Asia but worldwide as well. Vietnam was just one of those only-a-matter-of-time propositions that had to happen sooner or later. What’s noteworthy here is that bit about working toward a cashless society. That phrase doesn’t come up very much in anything official; usually we’re left wondering if that’s the ultimate purpose of a move.

It’s a development worth watching all the same, as Alipay continues its expansion and Vietnam looks at a new way to pay throughout the country.