Culture to Know

Paying for goods and services in China has undergone a remarkable transformation in recent years. From cash-dominated transactions to a highly digitized and seamless system, the Chinese payment landscape is among the most advanced in the world. This article provides an overview of the various payment methods available in China, helping visitors and expatriates navigate their financial transactions with ease.

Content Table:

1. Mobile Payments
   1. Download Mobile Payment Apps
      1. Alipay
      2. WeChat Pay
   2. Prepare for Mobile Payments
   3. How to Pay by QR Code in China
2. Bank Cards
   1. UnionPay
   2. International Credit and Debit Cards
3. Cash
4. Digital Wallets
5. Tips for Foreigners
6. Conclusion

1. Mobile Payments

China is rapidly becoming a cashless society, with mobile payment being the most popular and widely used method of transaction. The convenience, speed, and security of mobile payments have led to their dominance in both urban and rural areas.

Download Mobile Payment Apps

Alipay

Alipay, developed by Alibaba Group, is one of the most popular mobile payment platforms in China. According to feedback from tourists, Alipay is often the preferred option due to its superior success rate in both account linking and payment transactions.

• How to Use: Download the Alipay app, sign up using your mobile number, and link a Chinese bank account or international credit card.
• Acceptance: Alipay is widely accepted in stores, restaurants, taxis, and even by street vendors.

WeChat Pay

WeChat Pay, integrated into the ubiquitous WeChat app, is another dominant player in the Chinese mobile payment market. It provides similar services to Alipay, making it a convenient option for everyday transactions.

• How to Use: Download WeChat, register your account, and link it to a Chinese bank account or international credit card.
• Acceptance: Almost universally accepted, from large retail chains to small local shops.

Prepare for Mobile Payments

1. Ensure Bank Support: Inform your bank beforehand and ensure your card is authorized for international use. Visa, Mastercard, Diners Club International, Discover, and JCB are generally acceptable. Barclays and Wise cards have also been reported to work well.
2. Chinese SIM Card (Optional): While not required for registering on Alipay or WeChat Pay, having a Chinese SIM card can help avoid international data roaming fees. Alternatively, you can activate international roaming on your current plan.

How to Pay by QR Code in China

To pay using WeChat or Alipay in China, there are two methods:

Method 1: Merchant Scans Your Payment QR Code

This method is more common in hotels, supermarkets, large shopping malls, and restaurants. Simply present your payment QR code in front of the scanning device. The corresponding payment amount will be automatically deducted from your account.

• Alipay: To access the payment QR code, find it under the search box on the home page by tapping on “Pay/Collect”.
• WeChat Pay: Tap on “Me” in the bottom right corner, then tap “Money” to show the payment QR code.

Method 2: You Scan the Merchant’s QR Code

Open the app and tap the “+” on the top right corner, and select “Scan”. Then, scan the QR code displayed by the shop and enter your payment amount and password/passcode to complete the transaction.

2. Bank Cards

UnionPay

China’s domestic bank card organization, UnionPay, is the most widely accepted card network in China.

• How to Use: Obtain a UnionPay card from a Chinese bank. Most ATMs and point-of-sale terminals support UnionPay cards.
• Acceptance: Accepted at almost all merchants, hotels, and restaurants across China.

International Credit and Debit Cards

Visa, MasterCard, and American Express cards are accepted in many urban areas, especially in high-end hotels, international chains, and tourist destinations.

• How to Use: Simply present your card for swiping or insert it into the card reader. You may be required to show your passport for verification.
• Acceptance: Less ubiquitous than UnionPay, so always carry a backup payment method.

3. Cash

While mobile payments dominate, cash is still a viable option, especially in rural areas or smaller towns where digital payment infrastructure might not be as developed.

• Currency: The official currency is the Renminbi (RMB), also known as the yuan (¥).
• How to Use: Ensure you have small denominations for convenience. Cash can be withdrawn from ATMs, though there may be fees for international cards.
• Acceptance: Accepted everywhere, but becoming less common in urban areas.

4. Digital Wallets

Apart from Alipay and WeChat Pay, other digital wallets like Apple Pay and Google Pay are available but less commonly used. These platforms can be linked to international bank cards and used in stores that accept contactless payments.

• How to Use: Add your credit or debit card to the digital wallet app on your smartphone.
• Acceptance: Limited, primarily in international retail chains and larger urban centers.

5. Tips for Foreigners

Setting Up Bank Accounts

For long-term stays, setting up a Chinese bank account can simplify your financial transactions. Major banks like ICBC, Bank of China, and China Construction Bank offer services for foreigners.

Currency Exchange

Currency exchange services are available at airports, hotels, and banks. ATMs also offer the option to withdraw RMB directly.

Language Barrier

Most payment terminals and apps offer English interfaces, but it’s helpful to learn basic Chinese phrases related to payments.

Conclusion

China’s payment systems are diverse and technologically advanced, providing numerous options to suit different needs. Whether you prefer the convenience of mobile payments, the security of bank cards, or the simplicity of cash, understanding these methods ensures a smooth experience while navigating China’s vibrant marketplaces and services. Embracing these payment innovations will not only enhance your convenience but also provide insights into the future of global financial transactions.