Alipay has announced significant enhancements to its Tap! services by integrating AI agents into its widely used devices, creating the world’s first large-scale AI-powered offline business operations network. This development aims to bolster merchant growth and improve digital operations for businesses, including small and medium-sized enterprises (SMEs).

By connecting the AI agent "Xiaoyu" to Alipay Tap! devices, merchants can now access intelligent analysis and actionable insights to optimise their operations. "Xiaoyu" offers capabilities such as top-selling product marketing, membership management, and integration with Taobao Instant Commerce. This upgrade is particularly beneficial for SMEs lacking AI development capabilities, offering tailored integration, AI-generated marketing materials, and 24/7 business analytics.

The enhancement of Alipay Tap! services with AI is part of Alipay’s broader AI strategy, which includes the recent launch of a next-generation AI payment infrastructure. This infrastructure features AI Pay, AI Wallet, and Token Pay, all underpinned by China's first Agentic Commerce Trust Protocol. This protocol ensures secure AI-driven transactions, essential for scaling the agentic economy.

Agentic commerce is rapidly gaining traction in China, with over 300 million transactions processed through Alipay AI Pay as of May 2026. Businesses are integrating Alipay AI payment with Tap! services to enhance operations and consumer experiences. For instance, consumers can now interact with Haier's AI agent via smartphone to receive personalised recommendations and complete payments seamlessly.

In June 2026, Alipay further advanced its AI capabilities with the launch of an upgraded AI agent, "Ah Bao," transforming Alipay into the world’s first AI-native super app, facilitating easier access to services for its one billion users

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