Payment Challenges and Transformations in China
In China, cash is no longer the absolute king. Thomas Hood, also known as Thousand TomasHood, encountered various payment challenges during his recent trip to Beijing.
Encountering Payment Issues
Interviewee: Upon my arrival in Beijing, I faced some payment issues. Once, while guiding a customer to Emil’s place, the bill amounted to $2500. I attempted to make the payment but encountered difficulties.
Typically, merchants receiving my card would inform me that they did not accept that type of card and inquire about alternative payment methods like UnionPay or WeChat Pay. This was disheartening, but fortunately, my customer was accommodating and suggested an alternative payment method.
Rise of Mobile Payments
80% of daily transactions in China are conducted through mobile phones. Whether it’s shopping, paying utility bills, or government fines, all are seamlessly handled through mobile payments. In fact, living in China without using mobile les modes de paiement can be extremely inconvenient. Historically, tourists were excluded from this payment ecosystem as linking to major platforms like WeChat required a local bank account.
Interviewee: Tourists often face payment challenges as they need a local bank account to link to major payment platforms like WeChat. Some may try using cash or rely on local friends to assist with payments.
Payment Bottlenecks for Small Businesses
Sometimes, small family-run shops may struggle to provide change due to their unfamiliarity with handling cash. With the increasing popularity of online payments, this situation is expected to change. Particularly, WeChat Pay and Alipay now accept international credit cards, providing tourists with more payment options.
Interviewee: Now, WeChat and Alipay accept international credit cards, making payments more convenient for tourists. They can shop in stores, pay at restaurants, or even book cars or bicycles. These payment platforms serve not only as payment tools but also support various services such as hotels, delivery, and shopping, making everything more convenient. Considering the super convenience for foreign tourists in China, they can practically enjoy these services like locals.
Future Trends in Payments
Interviewee: As a business traveler, I also need to track my business expenses to truly understand my overall digital spending. This is beneficial for local Chinese businesses as well, as it allows them to sell more. Sometimes, tourists refrain from shopping due to payment inconvenience, such as not knowing how to use mobile payments, forgetting to carry cash, or not finding an ATM.
Interviewee: So, I believe the Chinese government is implementing plans to stimulate domestic sales and consumption by making payments more convenient, thereby positively impacting the economy.
Integration of Mobile Payments
Interviewee: I tried linking my card to WeChat to see how user-friendly the process is. I downloaded WeChat from the App Store, navigated to “Settings” in the “Me” section, entered my information under “Payment Tools and Methods,” and successfully linked my card. While this process was smooth for me, not everyone has the same experience. Some may encounter difficulties due to less user-friendly application interfaces for foreigners.
Payment Limits and Recommendations
Interviewee:Additionally, WeChat and Alipay have set limits on transactions, such as a single transaction limit of ¥6000 RMB and an annual total limit of ¥60,000 RMB. This may be related to China’s foreign exchange restrictions. It is advisable for tourists to set up their accounts before leaving China to avoid potential payment issues.
Internationalization of China’s Payment System
Interviewee: Overall, China’s payment ecosystem is moving towards greater internationalization. This is a positive change for both tourists and business travelers. However, to achieve maximum impact, certain issues, such as flight and visa convenience, still need addressing. Although borders have reopened, true recovery will take some time. Looking ahead to the coming years, the direction of China’s development is promising.
Video can be viewed at: https://www.youtube.com/watch?v=9HvmX-H9siE