China's Alipay launches cross-border payment service to let Chinese customers shop on US sites

China's half billion online shoppers will soon have an easier way to shop in the U.S.

Alipay, the payments unit recently spun off from Chinese e-commerce powerhouse Alibaba, is launching a service for U.S. retailers called ePass. Alipay has already been working in beta mode with retailers such as luxury deal site Gilt.com, The Gap and H&M.

The move will let U.S. retailers tap into the estimated 500 million Chinese online shoppers who spent $298 billion online in 2013.

Users of ePass will see an ePass payment option when they check out on a retailer's site. Chinese shoppers pay in yuan using their Alipay account and Alipay transmits the payment to merchants in 14 currencies via 180 international financial institutions. Customs duties are calculated at checkout.