• TerraPay's Xend network will connect an initial 15 African wallets to more than 150 million Alipay+ merchants for cross-border QR payments
  • Users are expected to pay abroad with their existing wallets, although the first wallet names and activation dates have not been announced

The fact

TerraPay and Alipay+ have announced a partnership that will allow users of selected African digital wallets to make QR-code payments at merchants abroad. The first phase covers 15 African wallets connected to TerraPay's Xend network. Once activated, users will be able to pay at more than 150 million merchants in the Alipay+ network using the wallet they already have, rather than switching to another payment app.

The partnership takes TerraPay beyond cross-border transfers between accounts and into payments at physical stores. Alipay+, operated by Ant International, provides the connection to participating merchants. The companies have not named the first 15 wallets or given a launch date for each one. They have also not published a full schedule of customer charges or transaction forecasts. The 150 million figure therefore describes the size of the Alipay+ merchant network, not the number of merchants already available to every participating wallet.

The assessment

For users, the main benefit is straightforward: they may be able to keep using the same wallet when they travel instead of finding another way to pay. Once connected to Alipay+, participating wallets could be used to scan QR codes at merchants abroad.

The 150 million merchant figure, however, does not mean every one of those locations will be available to every wallet from day one. Much will depend on which wallets go live first, where they can be used, and what exchange rates or fees customers are shown when they pay. Those details have not yet been announced.

For BTW readers, the real test begins when the first wallets are activated. Their launch markets, customer terms and actual payment experience will show how much of Alipay+'s large merchant network TerraPay users can genuinely access.

What to watch

Watch for TerraPay to name the first 15 wallets and give their activation dates. Customer-facing information on exchange rates, fees and refunds will also matter. Successful payments across the first launch markets would show how quickly the Alipay+ merchant network becomes usable for Xend wallet customers.