Uber’s Alipay Relationship Expands

Uber is taking a page out of Chinese rival Didi Kuaidi’s expansion strategy. The ride-hailing app company announced a new partnership with Alibaba’s financial wing that would allow its users traveling outside mainland China to pay for their rides in RMB using Alipay.

The partnership is an extension of Uber China’s service, which is already supported by Alipay in the country. Now, with the new arrangement in place, Uber users will have the same access that Didi Kuaidi‘s users have enjoyed through the company’s partnership with U.S.-based Lyft, India-based Ola and Grab in Southeast Asia.

The competition between the two companies seems to be intensifying by the day as they race to get their grip over the lucrative Chinese markets that reportedly see over 125 million Chinese citizens take trips out of mainland China.

Uber said its cross-border payment service will first be launched in Hong Kong, Macau and Taiwan — the three top travel destinations for Chinese tourists — and will then be further extended to other markets around the world in 2016.

“We are increasingly seeing very strong demand from mainland Chinese riders using Uber in other markets internationally, and this partnership enables us to provide these travelers with a more convenient, hassle-free payment solution,” said Eric Alexander, head of business for Uber Asia.

While among the ride-hailing companies in China Didi Kuaidi holds a tighter grip over the market, Uber’s partnership with Alipay is set to put it in a unique position now as it will have access to a potential user base of 400 million Chinese riders who are registered with Alipay.