Alipayโs innovative new feature offers enhanced services for one billion users, intensifying its competition with Tencent’s WeChat.
Alipay, the widely-used payment app owned by Ant Group, has unveiled a new artificial intelligence (AI) feature called โTanyixiaโ or โdo a little search.โ This cutting-edge tool allows users to upload or scan images to generate information about various topics, including plants, animals, food, and cartoon characters. Users can also translate menus or medical instructions using this feature, adding more value to the app’s extensive functionality.
The addition of the AI-powered image search tool reinforces Alipayโs position as a โsuper appโ in China, offering a comprehensive lifestyle platform for its users. The feature debuted on Monday, and by Tuesday morning, more than 20,000 users had already accessed it, according to data released by Alipay.
Expanding beyond payments
Alipay, launched two decades ago to facilitate payments on Alibabaโs Taobao marketplace, has become an indispensable tool for many Chinese consumers. Today, it is more than just a payment appโitโs a lifestyle platform that offers shopping, food delivery, travel bookings, and now AI-driven image searches.
This latest innovation highlights the growing competition among mobile payment platforms in China to retain users and grow their customer base. Alipay and Tencentโs WeChat, the two dominant players in Chinaโs digital payment sector, account for over 90 per cent of the market. Alipay excels in total transaction value, while WeChat dominates in transaction volume, especially among small businesses and street vendors.
With its generative AI capabilities, Alipayโs image search tool sets it apart from WeChatโs photo scanner. Introduced in 2019, WeChatโs tool allowed users to search images for QR codes and barcodes. Thanks to its advanced AI technology, Alipayโs version goes a step further by providing detailed captions for uploaded photos.
Navigating antitrust pressures
Beijingโs regulatory actions in recent years have shaped the rivalry between Alibaba-owned Alipay and Tencent. Both companies have had to open their previously exclusive ecosystems, allowing greater platform interoperability. For instance, in September, Alibaba announced that Taobao and Tmall, its flagship online marketplaces, would accept WeChat as a payment option alongside Alipay. By early October, Tencent enabled WeChat users to open Taobao links and place orders directly within its messaging app.
This regulatory push is part of Beijingโs broader antitrust campaign targeting online platform operators. In 2021, Chinaโs market regulator fined Alibaba US$2.8 billion for anti-competitive practices, and the scrutiny has led both Alibaba and Tencent to adapt their strategies.
Despite these challenges, Alipayโs latest feature demonstrates its commitment to staying ahead of the curve in a fast-evolving tech landscape. The addition of AI-powered image search aligns with its mission to provide innovative and convenient solutions for its one billion users, solidifying its place as a leader in Chinaโs digital economy.
