Govt stalls Alipay+ tie-up over data security concerns

New Delhi | Mumbai: Alipay+’s proposal to link with India’s instant payments system for cross-border transactions has been stalled due to national security concerns in New Delhi and questions about the storage and use of customer data, three sources familiar with the discussions said.

The proposal, made by Alipay+ in January, was the first by a China-linked entity in the financial services sector and came against the backdrop of easing tensions between the two neighbours.

Read more: Liquidity management, asset quality among pillars for NBFC growth: RBI DG

New Delhi and Beijing are working on maintaining peace at the border and Chinese President Xi Jinping’s expected visit to attend a BRICS summit in New Delhi later this month has been viewed as an effort to stabilise bilateral relations.

The Indian government’s concerns about Alipay+’s proposal stem from its Chinese links, data-security risks and the potential misuse of customer data, the three sources said. The sources requested anonymity because the discussions are confidential. Reuters is reporting for the first time the Indian government’s views on the matter.

Alipay+ is operated by Singapore-based Ant International, a digital payments and fintech firm that was spun out of China’s Ant Group as an independent company in 2024.