utu, the travel fintech company, has expanded its partnership with Alipay+, Ant International’s global wallet gateway, to offer Alipay (the Chinese mainland) users a more rewarding tax-free shopping experience in Europe when they travel abroad. Travelers can convert their anticipated VAT refund into a higher-value utu voucher, redeemable at participating retailers, directly within the Alipay app before they leave the country.

This partnership represents the next phase in utu’s mission to reshape traveler rewards which began with a successful implementation with global travel retailer Avolta at Milan Malpensa Airport. utu vouchers will now roll out across key downtown and airport retail locations in Italy and other Southern European markets next year, before expanding globally.

Previously, travelers could only receive their VAT refund at the end of their trip. With utu, they can now choose to convert their refund into a utu Voucher offering worth up to 25% more, turning it into immediate spending power while still in the country. Travelers will still complete the standard VAT refund validation process at the airport.

This new travel retail experience will be powered by Al technology to simplify the process for the user, accessible seamlessly within the Alipay app. After completing their standard VAT refund form, travelers can simply choose the utu option within their Alipay digital wallet. In just a few steps, they can use the value of their anticipated VAT refund to receive an upsized utu voucher for immediate use.

Ameer Jumabhoy, Co-Founder of utu, says: “Following the success of our initial collaboration, deepening our partnership with Alipay+ was the natural next step. This alliance offers travelers more choice and value, while helping merchants convert refund value into sales – raising the bar for what’s possible in travel retail.”

Alipay+ connects over 100 million merchants in more than 100 markets with 1.8 billion user accounts of 40 mobile payment partners, including leading global digital wallets and banking apps.

Alba Ruiz Laigle, Head of Business Development, Europe at Alipay+, says: “We’re delighted to expand our partnership with utu to further enhance the travel experience in Europe for Alipay+ users, driving new benefits for both our merchant partners and users alike through this travel innovation.”