Alipay announced the enhancement of its Tap! services by upgrading the Alipay Tap! devices widely used by millions of merchants into an AI agent-powered network, building the world’s first large-scale AI-powered offline business operations network.
By connecting AI agent “Xiaoyu” to Alipay Tap! devices, Alipay helps merchants enhance their digital operations and expands AI agent-powered services to more offline businesses. Since its launch two years ago, Alipay Tap!, a contactless payment and customer engagement solution, has served 400 million users and millions of merchants through 30 million Tap! devices.

Alipay Tap! merchants can now simply talk to “Xiaoyu” to receive intelligent analysis of their operations and actionable insights for improvement. “Xiaoyu” also offers a range of capabilities, including top-selling product marketing, membership management, and integration with Taobao Instant Commerce for merchants operating within the network. “Xiaoyu” is also available for developers and independent software vendors (ISVs) to integrate SaaS agents and other business operation skills.

For small and medium-sized merchants without AI agent development capabilities, Alipay launched a dedicated AI agent offering tailored Alipay Tap! integration, AI-generated marketing materials, fast ordering and delivery based on a mature supply chain, and 24/7 business analytics.

Enhancing Alipay Tap! services with AI is another step in Alipay’s AI strategy, following the introduction of its full-stack AI payment infrastructure and an AI-powered version of the app this year.

In May 2026, Alipay launched a next-generation AI payment infrastructure consisting of AI Pay, AI Wallet, AI payment processing solution, and Token Pay. At its foundation lies China's first Agentic Commerce Trust Protocol, which leverages partnerships for development and an intelligent security system to safeguard every AI-driven transaction. Together, these solutions build the trust and transaction infrastructure essential for scaling the agentic economy.

Agentic commerce is gaining momentum in China, as transactions processed through Alipay AI Pay surpassed 300 million as of May 2026. Businesses and brands across industries are integrating Alipay AI payment with Alipay Tap! to enhance both merchant operations and consumer experience.