UniCredit Bank Hungary Zrt. signed an agreement with Alipay Europe to offer cashless payment solutions to Chinese tourists in Hungary.

The partnership between the units of UniCredit SpA and Alibaba Group Holding Ltd. will allow Chinese visitors to use their homeland app to make purchases in Hungary. UniCredit's head for Central and Eastern European countries, Carlo Vivaldi, said the deal is the first step in extending the service in other countries in the region.

The companies also noted that Hungary has the largest population of Chinese citizens, about 20,000, in the Central European region.

Alipay, the payment arm of Alibaba, is one of the dominant players alongside Tencent Holdings Ltd.'s Tenpay in China's third-party payment market.