Alipay, a mobile and online payments platform operated by Ant Financial Services Group, an affiliate of Alibaba, announced in September that it would collaborate with Japanese partners to strengthen cashless experience across the country for tourists before the 2020 Olympic Games begin in Tokyo.

"We look forward to working with a wide range of Japanese partners to achieve this ambition, and in doing so contribute in some way to driving the local economy of areas across Japan," said Eric Jing, executive chairman and CEO of Ant Financial.

According to Alipay data, Chinese visitors' spends through mobile payments are growing rapidly in Japan.

From July to August this year, a Chinese tourist in Japan used Alipay to spend nearly 3,900 yuan ($562) per trip on average, up 52 percent year-on-year, boosting total transaction volume by 165 percent.

Alipay's collaborations with regional Japanese banks such as Hida Credit Union and Kyoto Shinkin Bank have allowed it to make its payment services available at tourist spots and shops in major cities.

The company said it is seeking to further expand its merchant network through tieups with more small and micro-sized merchants and by cooperating with local mobile payment platforms such as Line Pay and Paypay.

Alipay was launched in Japan in December 2015 to provide services to Chinese visitors at local merchants. It is currently available in all 47 prefectures across Japan. It is also available at a wide range of tourism-related outlets like airport shops, department stores, restaurants and popular attractions.

Alibaba's success in Japan has inspired other Chinese players to follow suit.

WeChat Pay, which is owned by tech giant Tencent Holdings Ltd, became an official mobile payment partner for Japan's Fuji-Q Highland in July.

Most of the stores in the park can use WeChat Pay. Visitors can also use WeChat to buy tickets at a discount, explore the map and check how long queues are at ticket counters and entrances.

Zheng Hongmin, marketing director of Tencent's WeChat Pay international business, said the payment tool division of Tencent collaborates with companies in the retail and catering industries. "But now, we want to bring convenience to Chinese tourists in more aspects like entertainment."