Ban on Alipay Transactions for Americans

Summary#

The No Alipay Act of 2025 is a proposed new federal law; it does not amend an existing Act. It would prohibit financial transactions between AliPay (China) Internet Technology Company Limited and a “United States person,” including use of Alipay-operated apps and payment processing services. The bill’s title describes the prohibition, but the text does not state a separate goal.

  • The ban would cover financial transactions that meet the bill’s broad definition, including certain transactions involving funds, monetary instruments, or financial institutions.
  • “United States person” would include U.S. nationals, lawful permanent residents, U.S.-organized entities (including their foreign branches), and anyone physically present in the United States.
  • The bill lists no exceptions, penalties, enforcement agency, or process for deciding whether a transaction is covered.
  • The bill was introduced and referred to the House Committee on Financial Services. It is not law; whether it will pass is uncertain.

What it means for you#

  • People covered by the definition: You would be prohibited from making covered financial transactions with Alipay, including through its apps or payment processing services. The ban would apply to anyone physically present in the United States, even if they are not a U.S. national or permanent resident.
  • Businesses organized under U.S. law: The prohibition would also apply to these entities, including their foreign branches.
  • Other people and businesses: The bill does not define “United States person” to include every person or business connected to the United States. Whether a particular transaction is covered would depend on the bill’s definitions.
  • The public generally: The bill does not create a benefit, tax, fee, or new public service.

Money#

No publicly available information on the bill’s cost.

  • The bill does not specify public spending, staffing, fees, fines, or a funding source.
  • It does not state a start date.

What is unclear#

  • The bill does not explain how the prohibition would be enforced or who would enforce it. It sets no penalty.
  • “Financial transaction” is defined broadly, but the bill does not explain how the ban applies to indirect transactions or transactions involving other companies.
  • The bill does not set out exceptions, such as for particular types of payments.
  • The bill does not provide rules, timelines, or a process for determining whether a transaction is prohibited.

Case for#

  • A possible argument for the bill is that a direct prohibition could stop covered U.S. persons from making financial transactions with Alipay, including through its payment services.
  • The bill’s definitions name both the company and the people and entities covered, giving the prohibition a stated scope.

Case against#

  • The definition of “United States person” reaches anyone physically present in the United States, as well as U.S.-organized entities’ foreign branches. The bill does not explain how that reach would work in practice.
  • The bill’s broad definition of financial transaction, combined with no listed exceptions, could make it unclear which transactions involving Alipay are prohibited.
  • The bill does not specify enforcement, penalties, funding, or a process for resolving uncertainty about coverage.