Alipay makes it easier to get back overseas shopping tax

An Alipay tax-refund sign is seen on the counter. [File photo]

An increasing number of Chinese tourists heading home with purchases will soon find it easier to receive their tax refunds on overseas shopping.

China's Alipay and Swiss tax-refund giant Global Blue launched a service on Monday allowing Chinese tourists to have their refunds on duties sent directly into their Alipay accounts.

About 5,000 retailers across France, Germany, Italy, the United Kingdom and South Korea will be the first to provide the service, while retailers in the Netherlands, Spain and Switzerland are expected to roll out the service in the coming months.

Customers can get a refund in two weeks or less, instead of waiting for up to several months by waiting for a credit card refund.

According to Global Blue, Chinese tourists were the top spender globally in 2013. "About 85 percent of them want cash refunds, because they either don't trust credit card refunds or they don't have credit cards," said David Baxby, chief executive officer and president of Global Blue.

"Alipay is widely used in China and has a good reputation among Chinese customers. Through cooperation with Alipay, we want to enhance the shopping experience for the Chinese global shopper," he said.

Young Chinese couple Lu Zhe and Li Mengyao had just visited a Louis Vuitton store on the Champs Elysees. Li said it was her first time shopping in Paris but they knew tax refunds had become available through Alipay.

However, a Louis Vuitton shop employee said they had never heard of Alipay and knew of only two options for Chinese customers: either a 12 percent tax refund by using credit cards, or lining up at airports but only getting 10.8 percent back in cash.

"It is too troublesome so I never asked for a tax refund," said Wang Yuan, another Chinese customer at the Louis Vuitton shop. She wears many name brands, including Channel and Miumiu, and as a regular visitor of European luxury shops she never bothers lining up for a tax refund and will not use Alipay.

Statistics from Global Blue showed that Chinese tourists received 3 billion euros ($4.08 billion) in overseas shopping refunds in 2012, accounting for only 70 percent of the eligible amount.

Following Chinese people's footprints overseas, Alipay has expanded its services globally.

"A global tax refund is just one part of our international services," said Peng Yijie, chief executive officer of Alipay's international business department. "We are expected to launch more services to offer Chinese travelers easier payment options whether they shop overseas or study overseas," she said, adding Alipay and Global Blue are considering designing a system that may be able to allow Chinese tourists to receive their tax refunds immediately.

"Chinese tourists were the top spenders globally last year for the second year running, purchasing $129 billion worth of goods and services overseas," according statistics from the United Nations World Tourism Organization.

"The number of Chinese outbound tourists is expected to double to 200 million by 2020 from about 97 million in 2013 with 3.5 million of them visiting Europe," according to Alipay.