India stalls Alipay+ link to its instant payment system

A proposal by Alipay+ to link with India’s instant payment system for cross-border transactions has stalled amid national security concerns in New Delhi and questions over the storage and use of customer data, Reuters reported on September 3, citing three sources familiar with the discussions.

Alipay+ made the proposal in January. It was the first approach by a China-linked entity in India’s financial services sector, and came against a backdrop of easing tensions between the two countries following a deadly border clash in 2020.

Alipay+ is the cross-border payment platform operated by Ant International, the overseas arm of Ant Group. It connects merchants with wallets and payment methods across Asia, allowing users of a partner wallet to pay at merchants in other markets without a local account.

India’s Unified Payments Interface is the country’s dominant instant payment system, processing transfers between bank accounts through smartphone applications. The National Payments Corporation of India has pursued links with counterparts in several countries to allow travellers and businesses to make cross-border transfers over the network.

Neither the sources nor the report indicated whether the proposal has been formally rejected or remains under review. The report follows a series of Indian government measures restricting Chinese technology investment and applications since 2020.