- Shares in Perk Labs (CSE:PERK) have jumped more than 40 per cent after news of an agreement with Alipay
- The company’s subsidiary, Perk Hero, signed the deal to enable Alipay users to make payments on its platform
- Perk Hero will work to upgrade its platform to facilitate the synergy of the two payment systems
- Alipay recently surpassed PayPal as the world’s largest mobile payment platform, with 900 million current users globally
- Perk Labs (PERK) is currently up 43 per cent, with shares trading for C$0.23
Shares in Perk Labs (CSE:PERK) have jumped more than 40 per cent today after news of an agreement with Alipay.
The company’s subsidiary, Perk Hero, signed the deal to enable Alipay users to make payments via the Perk Hero platform.
The mobile ordering, payment and customer loyalty platform will integrate Alipay’s functions by synergising QR codes.
Perk Labs CEO, Jonathan Hoyles, is optimistic about the agreement.
“This arrangement will appeal to Chinese visitors who would like to use Alipay as their preferred payment method while travelling and living abroad.
“It will also add value to our merchants, who will be better positioned to benefit from a massive, new base of Alipay users who represent increased foot traffic, spending power and revenue. It’s a great win-win,” he said.
With 900 million current users, Alipay surpassed PayPal in 2013 as the world’s largest mobile payment platform.
The bulk of the users are Chinese residents, who are driving an increasing trend in shopping, dining out and visiting tourist attractions.
Destination Canada reported in 2018 that the country is Canada’s largest source of tourist arrivals from the Asia-Pacific region. China is also the most prominent country in terms of tourist spending.
Chinese tourism in Canada has seen a 16 per cent growth year-over-year, with 737,000 arrivals in 2018.
Steve Yulei Wang, General Manager of Alipay North America, confirmed Hoyle’s views on the deal.
“We are looking forward to enabling more of our valued users to use Alipay QR codes at Perk Hero merchants in Canada.
“This provides a familiar method of payment for Chinese users in Canada, connecting them with valued local merchants,” he said.
Younger demographics in China are increasingly using mobile platforms to make payments, including trips overseas. Their affinity for smartphone-based technology has transformed the mobile platform sector into a well-established and valuable industry.
“Alipay will help our merchants to leverage this new and ever expanding global marketing channel and Super App,” added Hoyles.
“Through Alipay, our merchants can market to Chinese tourists and visitors living abroad, boosting exposure of their businesses amongst Alipay’s extensive user base.”
Perk Labs (PERK) is currently up 43 per cent, with shares trading for C$0.23 at 11:25 am EST.