(Yicai Global) June 29 -- China's e-commerce behemoth Alibaba Group Holding Ltd. [NYSE:BABA] will work with the Tianjin municipal government to build the first cash-free city in northern China as the company continues to pursue its strategy to push for cash-free cities.

Ant Financial Services Group, financial services arm of Alibaba, signed a cooperation agreement with the Tianjin government yesterday to build the populous northern city into a cash-free one, online media outlet IThome.com reported.

Tianjin is the third Chinese city that has inked an agreement with Ant Financial this month after the central city of Wuhan and the southeastern city of Fuzhou.

Per the agreement, the two sides will work together to promote the application of smart internet technologies in the provision of public services. Passengers in Tianjin will be able to pay fares for buses and expressways by using Alipay by scanning a QR code within this year. Reimbursement for medical expenses via mobile devices and remote verification of collection of pensions will also be unveiled through trial programs.

Tianjin has 15.5 million permanent residents. Alipay, the online payment service run by Ant Financial, has 6.9 million users registered with their real names, according to data from Ant Financial. The firm said in February that it hopes to help China become a cash-free society in five years. The city of Hangzhou in Zhejiang province, where Alibaba is based, has become the world's largest cashless city where residents can make payments for a long list of purchases without using cash.