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Alipay's 'Touch and Pay' Turns 30 Million Devices into AI Business Hubs

Alipay is taking its 'Touch and Pay' system to the next level. On July 8, the company announced a major AI upgrade that transforms millions of merchant-side payment devices into what it calls 'Touch Device Agents.' Alongside this, Alipay launched the 'Touch Everything Agent' service platform for small and medium-sized businesses, plus an 'AI Open Base' for developers.

Two years after its debut, 'Touch and Pay' now boasts 400 million users, 2,300 ecosystem service providers, and over 30 million offline AI touchpoints. That makes it the world's first large-scale offline AI business network.

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Bridging the Physical and Digital Worlds

The upgrade lets users tap their phones on a merchant's 'Touch and Pay' device to activate AI agents. These agents can deliver coupons, special offers, and other services. But it doesn't stop there. The same touchpoints can connect users to AI services in areas like travel, healthcare, and cultural attractions. In effect, Alipay has blurred the line between the physical world and AI agents, making every tap a gateway to intelligent interaction.

This is the latest step in what Alipay calls the 'three-year three jumps' plan. Year one focused on smoother payments. Year two turned 'Touch and Pay' into a new offline service entry point. Now, in year three, it's becoming a full-fledged AI business entrance for merchants.

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Meet Xiaoyu: The Merchant's AI Assistant

At the heart of this upgrade is 'Xiaoyu,' the industry's first merchant 'Touch Device Agent.' Xiaoyu integrates payment, membership, marketing, delivery, and store traffic management into one AI-powered system. It also opens up new skills like Alipay subsidies, cashback rewards, government subsidies, membership management, product marketing, Taobao flash sales, and even Gaode map rankings.

Merchants can interact with Xiaoyu across multiple devices—'Touch and Pay' terminals, POS machines, and smartphones. Just talk to Xiaoyu, and it handles everything from data analysis to business strategy. That means even small shops can operate with AI assistance, solving long-standing problems like weak digital marketing, poor data insights, and the disconnect between in-store and online operations.

And this network isn't closed. Alipay is opening it up to all merchants, service providers, and developers through SaaS tools, intelligent agents, and business skill components. The goal is to push AI beyond the digital realm and make it a real driver of commerce.

Small Merchants, Big AI Dreams

You might wonder: what about small businesses that can't afford custom AI development? Alipay's answer is the 'Touch Everything Agent' service. Just tell it what you need, and it handles the rest.

This service bundles three AI capabilities:

  • AI Creative Designer: Generates eye-catching touch materials in seconds.
  • AI Manufacturing Expert: Taps into a mature supply chain to recommend from over 300 material specs, enabling fast ordering and delivery.
  • AI Touch Manager: Works 24/7 to track data, analyze performance, and handle revenue settlement.

With this, every 'Touch and Pay' touchpoint becomes a merchant's personal AI agent. Even the tiniest shop can step into the AI era with minimal effort.

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Industry Solutions and New Species

Alipay's offline AI network now covers industries from restaurants and convenience stores to shopping malls, hotels, transportation, and more. Partners like Green Town, Fenjiu, Sinopec, and Haier have launched their own 'Touch and Pay' industry solutions.

Since its launch, the user base has grown from zero to 400 million. That scale has spawned 'Touch and Pay native new species'—innovative products built around the tap interaction. Examples include smart charging for ride-hailing, AI-powered game warehouses, solar umbrellas, portable WiFi, and smart postcards.

Connecting Touch and Pay with AI Payment

Alipay's AI payment system has already processed over 300 million transactions. Now, companies like Haier are linking 'Touch and Pay' with 'AI Payment' to create a seamless cycle: users tap to activate a merchant's AI agent, which handles product info, recommendations, and orders, then completes payment through Alipay's AI system.

To help merchants boost AI-driven marketing, Alipay launched the AI Marketing Suite. It offers tools for pre-sales, flash sales, and repeat purchases, improving conversion and retention. And for developers, a virtual resource platform provides one-stop access to cloud resources, APIs, and skills, making it easy to build AI-powered applications.

Key Points:

  • Alipay upgrades 'Touch and Pay' devices into AI agents, creating a network of 30 million offline touchpoints.
  • New 'Touch Everything Agent' service lets small merchants access AI without technical skills.
  • Merchant AI assistant 'Xiaoyu' handles payments, marketing, and data analysis.
  • The network connects 400 million users and spans industries from retail to healthcare.
  • Integration with 'AI Payment' completes the offline-to-online business cycle.