Wuzhen World Internet Conference Showcases Alipay Contactless Payments
- India has stalled a proposal by Singapore-based digital payments firm Ant International to link Alipay+ with the country's Unified Payments Interface, citing national security risks, data-security concerns, and...
- Submitted in January, the cross-border payments proposal marks the first financial services initiative involving a China-linked entity since bilateral tensions escalated following a deadly border clash in 2020.
- The initial phase of the proposed partnership aimed to allow Indian travelers in China, Hong Kong, and other parts of Asia to complete transactions at over 150 million...
India has stalled a proposal by Singapore-based digital payments firm Ant International to link Alipay+ with the country’s Unified Payments Interface, citing national security risks, data-security concerns, and potential threats of cyberfraud, according to reports published by Reuters.
New Delhi Halts Alipay+ Integration Over National Security Risks
Submitted in January, the cross-border payments proposal marks the first financial services initiative involving a China-linked entity since bilateral tensions escalated following a deadly border clash in 2020. According to sources cited by Reuters, New Delhi’s foreign ministry specifically cited political grounds for stalling the initiative, noting there is no clear path to resolving the regulatory hurdles. Ant International operates Alipay+ as an independent company after spinning out from China’s Ant Group in 2024.
Phased Cross-Border Network Plans Scaled Back
The initial phase of the proposed partnership aimed to allow Indian travelers in China, Hong Kong, and other parts of Asia to complete transactions at over 150 million merchants across the Alipay+ network, according to Reuters reporting. A subsequent phase would have permitted international visitors to use Alipay+ inside India.
Law Enforcement Raises Money-Laundering and Breach Alarms
However, Indian law enforcement agencies raised significant objections regarding potential money-laundering vulnerabilities and data breaches that could expose customers to cyberfraud. Sources familiar with the confidential discussions noted that while bilateral payment programmes routinely undergo strict checks regarding data processing, storage, and dispute resolution, China-linked entities face substantially higher regulatory scrutiny.
Explosive Growth in Global Cross-Border Settlements
The regulatory roadblock occurs as both payment ecosystems actively pursue broader regional partnerships across Asia and Europe.
Government Agencies and Ant International Stay Silent
Despite economic incentives, national security considerations continue to dominate decision-making in New Delhi’s financial sector. Representatives from India’s ministries of external affairs, finance, and home affairs, alongside the Reserve Bank of India, the National Payments Corporation of India, and Ant International, did not respond to requests for comment regarding the stalled talks.