Ant-financial in establishing the early stage of the Alipay eco systemin Malaysia
Authors: Chew Boon Cheong , Tan Lay Hong , Loke Abdullah Nurlisa , Hamid Syaiful Rizal 
Published: November 2024

Purpose
This study aims to explore the unique establishment of the early stage of the Alipay ecosystem in Malaysia by the Chinese-based Ant-Financial Services Group (Ant-Financial is the parent company of Alipay). Alipay, a Chinese m-payment technology, is used by Chinese tourists visiting Malaysia. With the diverse set of domestic–foreign stakeholders formed within this early stage of the Alipay ecosystem in Malaysia, this empirical study provides fresh insight that is different from the typical group of domestic stakeholders and crucial for a successful early stage of an m-payment ecosystem establishment. This early stage of the Alipay ecosystem in Malaysia set a promising precedent for the next m-payment ecosystem for Malaysians.

Design/methodology/approach
This exploratory case study examined the early stage of the Alipay ecosystem established in Malaysia. The authors collected primary data from eight respondents through qualitative, semi-structured interviews. These respondents were identified using a snowballing technique, including individuals with relevant knowledge. To ensure the accuracy and reliability of the information, the authors triangulated the primary data obtained with other primary and secondary data sources.

Findings
The results elucidate how Ant-Financial established the early stage of the Alipay ecosystem in Malaysia. A significant aspect of this establishment was the strong collaboration between Alipay-Malaysia Sdn. Bhd. (Alipay-Malaysia as a subsidiary in Malaysia) and three Malaysian banks. This collaboration, which was backed by Bank Negara Malaysia, allowed Alipay-Malaysia to obtain its regulatee status in 2017, making it lawful to provide escrow e-money services in Malaysia. Following this, Alipay-Malaysia gained support from local merchants under these banks’ networks to accept Alipay from Chinese tourists. This study revealed that the early stage of the Alipay ecosystem in Malaysia was characterised by a diverse set of domestic-foreign stakeholders and functioned effectively from the outset. Consequently, in 2018, Malaysia was ranked among the top ten countries in global Chinese tourist spending.

Research limitations/implications
This study of Alipay in Malaysia from 2016 to 2022 was challenging. Initially, the authors faced the obstacle of information scarcity as the respondents kept the information confidential to reduce rivalry. In the middle stage of our study, the authors encountered information inconsistency due to numerous erroneous personal assumptions and predictions. At that time, limited official information about Alipay’s establishment in Malaysia was available. It took a long time to gather primary and secondary data. The authors cross-examined these data by comparing different sources and triangulated them by validating the findings with other data sources. When Alipay was widely accepted in Malaysia and attained the top 10 position in global Chinese tourist spending, the COVID-19 outbreak froze the global tourism economy and reduced Alipay transactions. Later, the Malaysian Government enforced a nationwide movement control order that halted Alipay operations.

Practical implications
This study documented the early stages of the Alipay ecosystem establishment in Malaysia and made two contributions. Firstly, our research contributes to understanding the strategic approaches of an m-payment ecosystem establishment from a developing country-drawing from the Malaysian experience. Secondly, our study offers practical lessons for other m-payment service providers aiming for global expansion. The lessons learned in developing an early stage m-payment ecosystem in Malaysia, the strategies, a diverse set of domestic-foreign stakeholders’ roles and their collaboration within the Alipay ecosystem established in Malaysia are worth noting.

Originality/value
Up to this point, no exploratory qualitative study has been conducted on the early stage of an m-payment ecosystem (dominated by a foreign m-payment technology) in a developing country. By addressing the research question of “How has Ant-Financial established the early stage of the Alipay ecosystem in Malaysia?” this study provides a unique perspective on the establishment of an early stage Alipay ecosystem, underscores the strategies of an early stage Alipay ecosystem establishment and understand a diverse set of domestic-foreign stakeholders’ roles and their collaboration within such ecosystem that contributed to the existing theory of m-payment ecosystem.