Alipay, which is already available in taxis in New York and Los Angeles, has an active user base of 520 million. As iTWire has reported previously, digital use in China is far ahead of the rest of the world.
The deal means that Chinese tourists who travel by taxis in Australia which use Cabcharge will be able to pay their fares using Alipay.
Cabcharge said it would roll out the technology in its 22,000 taxis after an initial trial run.
In the year to 30 June 2017, about 1.2 million Chinese tourists visited Australia, and spent $9.8 billion. More than 3.3 million Chinese tourists are expected to visit each year by 2026.
George Lawson, country manager of Alipay ANZ, said: “Cabcharge is an early adopter of Alipay in Australia and they understand that better servicing Chinese customers in market can lead to revenue growth.
"This technology will help Australian taxi-drivers break-down language and currency barriers and limit anxieties that that may have stopped Chinese tourists from using taxis in the past.
“In recent years, there has been a notable shift away from traditional Chinese tourist groups to more independent travellers. This is a tremendous opportunity for the taxi industry and makes the acceptance of Alipay even more critical.”
Andrew Skelton, Cabcharge’s chief executive and managing director said: “Cabcharge is proud to be partnering with Alipay to extend its payment capabilities and offer additional choices for passengers.
"Our strategic investment in technology has contributed to us remaining at the forefront of non-cash payment technologies in Australia. The acceptance of Alipay enables the Australian taxi industry to more effectively service Alipay’s growing user base in Australia.
“Cabcharge’s partnership with Alipay is an example of our continued commitment to improve the passenger experience by making our payment services as seamless, secure and simple as possible."