Ringing in a Retail Renaissance in San Marino

Long after the powerful kingdoms of Genoa and Venice folded into Italy, one microstate endured. The oldest republic and fifth-smallest nation in the world, San Marino is an enigma of European history. It echoes an era when city-states proliferated across the continent – a tiny, hilly enclave that defied historical forces to maintain its sovereignty, majestic vantage points and storied architecture.

Three picture-perfect, castle-like citadels rise from Monte Titano, the country’s highest peak, peering over sprawling views of north-central Italy. Like its surprising terrain, San Marino is a study in contrasts. Medieval piazzas sit comfortably among sleek malls, and trendy streets give way to ancient alleys. Its Mediterranean energy is fused with old-world charm, an effortless blend of tradition and modernity.

Small but Mighty

Tourism fuels the economy of the 23.6-square-mile republic, which usually welcomes more than three million visitors every year. So when Covid-19 hit, San Marino’s 1,500 retailers felt the impact of sharply dwindling tourist flows – only to emerge stronger.

During the lull, San Marino put its vision of being commercially open to the world into full gear, with the help of current technologies. As Fabio Righi, San Marino’s Secretary of State for Industry, observes, “merchants have been asking for years for greater flexibility and more tools to facilitate purchases by foreign tourists, so the front has always been united in this policy of economic openness, initiated by San Marino’s Ministry of Industry. The objective is to make the offer of merchants competitive from all points of view, first and foremost that of payment instruments. For all these reasons we have begun a specific dialogue with Alipay+ in Europe and invited them to bring their experience to our ancient republic."

In building a stronger dialogue with the world, San Marino recognizes Asia as a key market and unparalleled opportunity – one that BKN301, San Marino’s leading fintech institution, has been quick to seize. With its partnerships with major local banks giving it 95% coverage of the domestic market, BKN301’s next step was to connect local merchants with global customers. To welcome a vast pool of customers from the east, it knew it had to simplify the shopping experience for Asian visitors, starting from the very first point of consumer consideration: their smartphones.

The Oldest Republic Meets the Latest Tech

Introducing Alipay+ to its merchants was an easy fit. As Stiven Muccioli, founder of BKN301, notes, “By connecting to Alipay+, the solution connects e-wallets and mobile banking outside China, and throughout Asia. Therefore, any commercial reality on Alipay+ has access to extraordinary technological, financial and retail marketing services to expand the volume of business internationally.”

Through Alipay+, San Marino’s merchants are now connected with more than one billion customers in Asia and are able to accept any payment made through Alipay – as well as all major Asian wallets supported by the platform. East-west transactions that would’ve taken days or incurred substantial transaction fees are now cleared in seconds.

In addition to seamless digital payments, Alipay+ equips San Marino’s merchants, especially small and medium-sized businesses, with robust marketing solutions that give them instant visibility on a global level. Asian customers can discover store information and exclusive offers, interact directly with merchants and make online and in-store payments with ease, all within their preferred payment method using Alipay+’s solution.

Simple, effective integration is equally crucial for merchants. As Barbara de Magistris, Director of San Marino Outlet Experience – the country’s luxury outlet destination, notes, the most important considerations for merchants adopting new technologies are credibility, security, and ease of implementation and use. “Cash payments are less relevant in luxury retail, especially if you are addressing your product to savvy international travelers,” she explains. “Seamless service is of the essence, and digital payments can guarantee that in a customer journey. Luxury brands need to offer a full range of safe payment circuits – and partners such as Alipay+ can guarantee it.”

A Retail Renaissance

As travel returns to San Marino, renewed optimism is in the air. Secretary Righi notes that “the country’s trade sector has overcome the moment of crisis, returning to almost pre-pandemic levels, thanks to the use of new technologies and e-commerce.” And with a gradual return to normalcy comes the recovery of traditional commerce. San Marino’s in-person retail invitation is hard to ignore, and made all the more compelling by its thousand-year history.

Stores across the country are open every day of the week – and, in a best-kept secret, all duty-free, which means prices are often lower than across the Italian border. Cobbled streets bustle with markets, and the old town center beckons with collectible coins, stamps and curiosities for every fancy. From the treasures of the Middle Ages to the latest tech, and specialist shops to leading fashion brands, San Marino has long excelled in the art of retail.

Here, Alipay+’s suite of end-to-end solutions helps merchants achieve further growth by bridging digital and physical shopping experiences. New solutions like Alipay+ are driving the evolution of banking and financial services in San Marino by speeding up the development of the country’s payments ecosystem, and helping it take its first steps toward a cashless society.

Whole-of-Nation Innovation

As Secretary Righi notes, a nation-wide interest in innovation is closing the gap between “the small size of our Republic and that of the infinitely larger Asian markets, which are now easier to access thanks to tools and partnerships such as the one developed with Alipay+.”

On its path to becoming a global technological hub, San Marino is leveraging the best technologies and exploring the full potential of fintech in accelerating its economic growth – an official sentiment that private sector leaders like de Magistris and Muccioli share.

“Together with BKN301 and Alipay+, we can create the right synergy in this new adventure,” de Magistris says. “Teaming up with a player that’s highly important for the Asian customer in the digital payment solution space completes our strategy to attract these nationalities to our destination."

"Applying innovation and new technologies to the real economy is the vision and the goal of the Republic of San Marino, in order to drive a digital economy for the development of our companies," adds Secretary Righi.

"Innovation is a key driver of development and a determining factor for the success of SMEs and large enterprises,” Muccioli notes. “At the same time – and this is a fundamental point – there is no innovation that can be considered as such if it is not generated by an actual need.”

In Alipay+, San Marino has found the right partner on both counts.