Mastercard has announced that it will allow its credit cards to be linked to AliPay’s digital wallet in China without the need for cash to be deposited into a prepaid account. This move aims to make it easier for foreigners to travel in cashless China, where the majority of the population has already shifted away from using cash. By enabling Mastercard users to make cashless payments through their mobile devices at the millions of AliPay acceptance locations across the country, visitors will have the same convenience and ease of transaction as locals.
This collaboration between Mastercard and AliPay expands on a partnership that was established in 2019. The two leading payment systems in China, AliPay and WeChat Pay, have been accessible to foreign credit cards on a limited scale since then. However, WeChat Pay, also known as Weixin Pay, will soon be more accessible as well, according to Tencent, its parent company. WeChat users will be able to link their Visa, Mastercard, JCB, or Discover cards to access merchants, allowing them to experience the same payment process as local Chinese users.
Tencent, commenting on the development, explained that Chinese regulators have encouraged the enhancement of mobile payment solutions for visitors to improve their payment experiences. Both Tencent and Mastercard highlighted the resumption of travel as a reason for expanding access to payment systems, recognizing the importance of catering to the needs of foreign visitors in a cashless society like China.
In other news, Singapore is developing a large language model called PAIR for government services. This initiative is aimed at improving the use of artificial intelligence (AI) in public services. The government’s digital services statutory board, GovTech, has formed a team to work on PAIR, which will be used by over 150,000 government staff. The goal is to harness AI for the public good and ensure that applications are accurate and free from plagiarism.
Meanwhile, China has achieved its target of increasing the number of 5G base stations by 600,000 ahead of schedule. The country’s Ministry of Industry and Information Technology reported that China now has 2.9 million 5G base stations, which is expected to support its goals of becoming a manufacturing hub and digital economic power. China is also investing in the research and development of 6G technology alongside its 5G infrastructure expansion.
US investment bank Morgan Stanley is relocating around 200 technology developers from mainland China to Hong Kong and Singapore due to tightened regulations on data storage in China. The bank plans to create a separate system in China to comply with the restrictions, although this system will not be compatible with its existing global platforms. This move reflects the challenges faced by international companies operating in China’s regulatory environment.
Computer maker HP is reinforcing its supply chain resilience by expanding notebook PC production in Mexico and continuing to grow its operations in Southeast Asia. The company aims to design its supply chain for potential disruptions by adopting a multi-source strategy for key components and maintaining manufacturing capacity in strategic locations worldwide.
Finally, Malaysian mobile operator Maxis has agreed to use the country’s state-owned 5G network. Maxis indicated that its decision is driven by a commitment to supporting Malaysia’s digital ambitions and enhancing its own network solutions. However, major operators like Maxis and U Mobile initially resisted the national 5G network model, which charges carriers to access the spectrum. Despite concerns, Maxis acknowledged that the state-owned network remains the sole provider for deploying 5G infrastructure throughout the country.
These developments in the Asia-Pacific region reflect the ongoing advancements in digital payments, AI technology, telecommunications, and supply chain management. As countries increasingly embrace cashless transactions and expand their digital infrastructure, it is important for companies and governments to adapt to these changes and cater to the needs of both locals and visitors alike.
