• A combination of a strong startup culture and innovative funding mechanisms have led China's fintech industry to grow by leaps and bounds.

A combination of a strong startup culture and innovative funding mechanisms have led China's fintech industry to grow by leaps and bounds. (Photo : Getty Images)

China is fast emerging as a leader in financial technology (fintech), thanks to a combination of its strong startup culture and innovative funding mechanisms. Such allows the Chinese market to avoid the mistakes that caused the 2008 global financial crisis, which rattled traditional financial structures.

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Such is manifested by the recent announcement of Ant Financial, which touts its Alipay e-payment platform for ease in VAT refunding. Chinese tourists shopping overseas can now receive VAT refunds through their smartphones in three major European airports: Helsinki, Milan Malpensa and Munich.

Ant Financial, which is owned by ecommerce giant Alibaba, also collaborated with Finnish mobile payment provider ePassi to enable shoppers using Alipay to shop and pay for services in all Finnair flights. The collaboration has effectively introduced the world's first in-air mobile payment service, per China Daily.

With economic boom translating to more Chinese tourists going abroad, Alipay's venture with ePassi envisions a wealth of opportunities for its in-air shopping services in Finnair. Currently, the Chinese e-payment platform is accepted in over 100 merchants in Finland, Yibada reported.

China's fintech scene has revolved round the country's strong cultivation of startups, many of which source their funds through deep venture capital and groundbreaking alternative financing measures. Through that, five of the world's top 10 fintech firms, per KPMG's 2016 report, are Chinese.

Through such a vaunted stature, China has become the go-to place for international fintech ventures to expand their opportunities. Crossover fintech investments are now in place between the country and the U.K., while Irish fintech firms have visited the country to meet with their Chinese counterparts.

Moreover, Chinese fintech firms are currently looking for more foreign investments. Among those firms include Wind Financial Information--known as the "Chinese Bloomberg,"--which is currently looking for European investors that would purchase its Asian asset class data.

Watch New China TV's feature on Alipay's partnership with ePassi in Finland below: