Union Gaming says casinos ‘unlikely’ to offer Alipay

Union Gaming analyst, Grant Govertsen, has said that although Alipay, an affiliate of Alibaba Group, is now legal for use in Macau, casino operators are unlikely to offer it.
“We would not expect them [casino operators] to offer Alipay Wallet in-person payments on casino floors given how contentious that would be – not to mention potential legal ramifications,” said Govertsen.
Third-party payment service Alipay is now reportedly available in 107 stores in Macau, with more than 51 local brands using the service’s QR code payment system. The company has over 550 million registered users, and facilitates over 8.5 million online transactions exceeding RMB2 billion daily. The Monetary Authority of Macau confirmed the institution’s local operating permit on Friday.
Govertsen said that they believe, “most merchants accepting Alipay are establishments such as restaurants and cafes; although Macau’s largest department store and some electronics retailers are also on board.”
“We do not believe any pawn shops have begun to offer Alipay [yet]. We would, however, expect pawn shops to explore the Alipay option over time, especially if any further UnionPay restrictions are put in place,” he added.
The MSAR government has limited overseas cash withdrawals from China’s Union Pay service to a total of RMB 50,000 until the end of this year. The limit will increase to RMB100,000 per year in January 2016.
On the other hand, Alipay Express can approve up to RMB 5,000 per transaction and a total of RMB50,000 per month.
Meanwhile, Standard & Poor published a new report on Macau’s gaming sector, concluding that a “meaningful rebound in gaming revenue” is unlikely to occur in 2015.
“A newly introduced cap on overseas cash withdrawals through China UnionPay […] may further undermine demand in the Macau gaming industry,” the financial services firm said. Staff reporter