Ant Financial Services Group, the financial affiliate of Chinese Internet giant Alibaba Group Holding Ltd., has announced a partnership with the city of Fuzhou to build what it called a "cashless society", according to state media reports.
Over 20 institutions and companies, including Fuzhou Municipal Bureau of Commerce, Green Payment Card, State Grid Fujian Electric Power Company and New Hua Du Supercenter Co., Ltd. have joined And Financial's "cashless alliance". According to the plan, over 90% of stores in Fuzhou will be ale to operate without cash by the end of this year, said Hang Dong, vice mayor of Fuzhou.
Fuzhou is the third city to cooperate with Ant Financial to develop a cashless shopping environment, behind Hangzhou and Wuhan.
This April, Ant Financial set up the cashless alliance in Hangzhou, attracting 15 enterprise at that time, including Alipay, Carrefour China, Beijing Capital International Airport and bike sharing start-up ofo. Chinese media reported that in Hangzhou, currently over 95% of supermarkets and convenience stores, and over 98% taxies accept Alipay.
Earlier this month, Wuhan city also announced to partner with Ant Financial with 28 institutions and enterprises joining the cashless alliances. The city plans to have 5,000 buses accepting Alipay by the end of this month, and have Alipay covering a number of services including railway and ferry tickets, parking and online car hailing.
In the case of Fuzhou, Ant Financial will cover four areas including transportation, commercial services, public services and government services, which means in the future people living in that city will be able to shop, travel and even see a doctor by simply carrying their smart phones.
Currently, around 95% of taxis, 85% supermarkets and convenience stores and 80% restaurants in the city accept mobile payment, with people in their twenties and thirties accounting for over 80% of the users.
Yuan Leiming, vice president at Ant Financial said at a conference in May that he believed China will fully realize a cashless society in five years.