Aleta Planet launches AP-1 virtual card that allows foreigners to make cashless payments in and to China

Singapore

AFTER some delays due to the Covid-19 pandemic, Aleta Planet has finally launched on Friday its AP-1 virtual card, which will allow Singaporeans and foreigners to make cashless payments like a local when they are in China, without the need to set up a bank account there.

The virtual card also allows small and medium-sized enterprises (SMEs) in Singapore which want to do business with China merchants to pay directly into their mainland suppliers' accounts.

In an interview with The Business Times, Ryan Gwee, Aleta Planet's chairman and group chief executive officer, said the China-centric Singapore fintech's AP-1 virtual card can be used for QR code or contactless payments through UnionPay, a Chinese global payment brand accepted at over 52 million merchants worldwide.

"I am launching this AP-1 solution for consumers, individuals, to remit money to other individuals in China. All of them have a UnionPay card.

"There is a remittance function to remit up to US$5,000, to do shopping in China, to do shopping in Chinese websites. I am also having that corporate solutions function to allow firms offshore to pay their suppliers and to take care of their operating costs."

The virtual account allows businesses to pay directly into their China suppliers' operating account or foreign exchange account, enabling their China counterparts to access the funds immediately. This is crucial in terms of their cash flow management.

In the past, businesses had to telegraphic transfer money to China suppliers, and incurred commission charges to register capital in China first, before transferring the funds into the operating account for use.

"The entire process takes longer and costs more. Today, when China suppliers bill you, you can automatically pay into their operating accounts and they can get their money immediately," Mr Gwee pointed out.

In contrast to AP-1, which is a digital account, AliPay has a short-term "Tour Pass" that allows foreigners to pay their suppliers or to use their Alipay account.

However, foreigners can top up their Tour Pass up to 2,000 yuan (S$406) each time, and can do so three times for the 90 days validity of the account.

Each fund load service is charged 5 per cent since Jan 1, 2020, whereas AP-1 charges S$99 for a lifetime membership, and foreigners can top up to S$30,000 a year.

Apart from businesses, consumers can leverage UnionPay's network for various transactions, including buying food from roadside stores, taking taxis, shopping at malls, dining in restaurants and booking air tickets in China, where cash is barely used now given the popularity and convenience of mobile payments via QR codes.

AP-1 users can also enjoy significant savings through the competitive and direct SGD-RMB currency exchange rates from UnionPay.

Besides visitors to China, those with family and friends in the mainland or shoppers who frequent Chinese e-commerce sites, will also benefit from using AP-1.

"China's cashless society has often been a challenge for visitors who do not have a local bank account to support mobile payments. AP-1 would solve these challenges for them," said Mr Gwee, who added that AP-1 is not just another e-wallet.

"It is uniquely placed to support foreigners because it taps into the payment network of UnionPay, a leading global payment brand. As borders gradually open, users will find AP-1 an easy, convenient and secure way of spending like a local in China."

For now, users can still benefit from remitting funds to UnionPay cardholders within 60 seconds and enjoy exclusive UnionPay rewards and promotions in Singapore.

The AP-1 virtual card can be used at retailers in Singapore that accept UnionPay QR code or Mobile Quickpass.

From the end of December, users will enjoy 18 per cent off (capped at S$8) at various local participating merchants including Five Star, Fragrance, Joo Chiat Popiah, Jumbo Seafood and 227 Katong Durian.

To access and use of the AP-1 virtual card, users can download the AP-1 app from Apple Store, Google Play or Huawei App Gallery, sign up for the virtual card within three minutes with MyInfo, then scan a retailer's UnionPay QR Code or use UnionPay Mobile QuickPass at the point of sale.

Aleta Planet is the first issuer in Singapore to support Huawei Pay's dual NFC and QR mobile payments function.

Huawei phone users can make contactless cash withdrawals at ATMs of supported banks in China using AP-1 in Huawei Pay, making Aleta Planet the first issuer in the country to support this function.

Cardholders can also link their AP-1 card to their PayPal account for added convenience and functionality. AP-1 is powered by proprietary technology developed by Aleta Planet, a Certified Principal Member of UnionPay International.

AP-1 users may top up their virtual card by linking it to a credit card or top up directly from a savings account via PayNow.

Maybank Singapore is supporting AP-1 as the solution enabler for the PayNow function.

Aleta Planet was started in 2014 to facilitate cross-border B2B (business-to-business) digital payments through the UnionPay network. It has progressively expanded its offerings to include B2C (business-to-consumer) services.

Earlier this year, it launched a remittance service on UnionPay's MoneyExpress network to allow the estimated 380,000 Chinese working in Singapore to send money back to China faster, cheaper and safer.

It also announced its partnership with one-stop lifestyle app Nestia to allow its over 600,000 registered members to make both offline and online payments using an UnionPay virtual card.