China is taking steps to help foreign visitors make full use of convenient payment options following a tourism boom in the first half of 2024, with greater efforts being made to ensure international travelers have access to more seamless financial services and connectivity across the country.
The number of foreign tourists visiting China increased by more than 150 percent in the first half of this year, buoyed by the introduction of a series of visa-free policies for numerous countries, with over 14.6 million foreign arrivals recorded at Chinese ports of entry.
Many of those arriving are enjoying the increasingly convenient payment options available in China, where mobile payments have become almost as natural as breathing. With the highest mobile payment penetration rate globally, China offers a seamless payment experience that can be surprising to many newcomers who are more used to pulling out cash and cards.
In the popular southwestern city of Chengdu, new payment options have made it easier for international guests to navigate transactions. For example, a one-stop payment service center for foreign visitors has been established at the city's Tianfu Airport, offering services such as cash exchange, bank card accounts, and Chinese SIM cards.
On the bustling streets of Chengdu, foreign visitors shared their experience of payments in China, with some saying they are sticking to using cash, while others are embracing paying on the leading apps of WeChat and Alipay.
"We pay for everything with Alipay and WeChat Pay. I love it, we love it," said a traveler.
"[I pay] through WeChat. Carrying cash all of this is like, as the Chinese said, it's 'too troublesome'," another tourist noted.
"[If] you want to buy food, you want to pay your electricity bills, water bills, you want to do banking transactions, everything is in one place," explained another foreigner, highlighting the convenience of China’s ubiquitous mobile payment applications.
In March, the People's Bank of China released a payment guide offering text and pictorial instructions on using bank cards, cash, mobile payments, and the digital yuan, or e-CNY, to help foreigners overcome "payment difficulties" in China.
Previously, foreign card payments could prove complicated at the point of sale, with multiple parties such as overseas card issuers, international card groups, and domestic payment companies all involved. However, financial services firm UnionPay International has been instrumental in streamlining this process, enhancing the experience for global guests.
"From my perspective, the fundamental reason for a 'smooth' cross-border payment is the broader use of UnionPay products," said Larry Wang, chief executive officer of UnionPay International.
"Overseas UnionPay cardholders, with their UnionPay card or e-wallet they applied for and used at home, use them the same after coming to China, without downloading or switching to other apps. As an international card organization, UnionPay cooperates with domestic and foreign commercial banks, acquirers and other parties to bridge the differences in payment habits between different countries, so as to ensure smooth foreign card payment," Wang explained.
Currently, more than 240 million UnionPay cards have been issued in 81 countries and regions, and about 200 UnionPay cooperative wallets have been launched in 36 countries and regions.
China's quest to become a cashless society and the work to offer greater convenience to international travelers is being spearheaded by the country's leading online payment provider Alipay, whose headquarters is based the eastern China city of Hangzhou, which last year hosted the 19th Asian Games. This event gave the company the first chance to test out its more foreign-friendly payment practices.
"From last year's Asian Games, under the guidance and support of regulators, we supported international travelers to link overseas cards, and pay authentication fee for a small amount of payment. In the past, foreigners needed to provide name, nationality, occupation and other personal information, when they attached their bank cards to Chinese payment platforms. The process was complicated. We also recently launched Alipay in 16 languages, helping international visitors to travel across the country with just a phone. In fact, in the past five years, we have been working on improving payment convenience for international travelers to China," said Katelyn Ko, senior product manager for Alipay's dedicated Payment for International Visitors division.
"This morning we just had a training session with tour guides in Hangzhou and we learned lots of industry experiences from them, and their sharing actually were quite impressive. For example, international tourists from different countries and regions, they have different payment habits. We are very happy to learn from them that the younger generation travelers enjoy mobile payment," added Bell Wang, head of international communications at Alipay.
Data from the People's Bank of China shows that mobile payment usage among foreign travelers is rising rapidly as these services gain traction among visitors.
In the first half of 2024, over 5 million inbound visitors used mobile payments, a fourfold increase from the previous year, with more than 90 million transactions amounting to over 14 billion yuan (near 2 billion U.S. dollars). Payment institutions are also continuing to expand their networks and innovate.
"We also continue to link the QR code network at home and abroad following the expansion of e-wallet overseas. UnionPay International has partnered with the international QR code networks of six countries, including Singapore, South Korea, and Sri Lanka," Larry Wang of UnionPay International noted.
China enhances cashless payment services to support surge in foreign travelers
