This guide explains how Alipay, the everyday payment method for Chinese consumers, can be used by businesses targeting the Philippines. It covers the Alipay+ cross-border structure, the scope of Hecto Financial's integration, the settlement process after receiving payments in PHP, and points to confirm before adoption.
In the Philippines, mobile wallets have already become a routine part of daily payments, but the dominant players are local wallets such as GCash. The role of Alipay in a Philippines strategy is somewhat different. Operated by an Ant Group affiliate, Alipay is the standard payment method for Chinese consumers, and the Alipay+ cross-border program allows a single integration to accept payments from users of multiple partner wallets across Asia. It's worth considering if you also want to target Chinese residents and visitors in the Philippines, or the ethnic Chinese business community there.
This is relevant for travel and hospitality-adjacent businesses that target both the ethnic Chinese community based in the Philippines and visiting tourists, or for merchants looking to cover multiple Asian markets through a single wallet integration. Conversely, if your target is solely the Philippine general consumer market, prioritizing local wallets such as GCash makes more sense.
Consumers log in to the Alipay app and authorize payment using their balance or a linked account or card, with online payments proceeding via QR scan or app redirect. For transactions targeting the Philippines, Hecto Financial receives the proceeds in Philippine peso (PHP), converts the currency, and pays out to the Korean merchant in whichever of USD, KRW, or JPY is specified in the contract.
Korean merchants can consider accepting Alipay cross-border payments through integration with Hecto Financial alone, without a direct contract process with Ant Group. Industry restrictions, conditions by transaction volume, and the scope of Alipay+ partner wallets accepted need to be confirmed individually through consultation.
※ This section describes the general support process and does not guarantee that a specific merchant can actually be integrated. Please confirm the exact scope of support and fees through consultation.
Confirm contract eligibility as a business registered in Korea
The integration method differs depending on whether the business is online-only or also includes physical stores in the Philippines
Advance confirmation is needed as to whether the category falls under merchant restrictions set by Alipay's operator
Confirmation is needed as to whether the business complies with the Philippines' payment and foreign exchange regulations (see official sources below)
The flow of Alipay transaction proceeds can be summarized as 'receive in local currency, then settle in a selected currency.' Hecto Financial receives and converts the proceeds in PHP, and the merchant designates one of USD, KRW, or JPY as the settlement currency in the contract. The settlement cycle and fee rate are matters of contract terms. When a refund occurs, both Alipay's cross-border refund policy and Hecto Financial's operating standards apply together, so be sure to confirm processing timelines in advance.
Hecto Financial's team will work with you to review the payment method mix that fits the Philippine market.
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