Introduction
China has a diverse and highly developed payment ecosystem. From traditional currency to the cutting – edge mobile payment methods, it offers a wide range of choices for both locals and foreigners. This article will provide you with a detailed overview of payment in China.
Currency in China
The official currency of China is the Renminbi (RMB), and its basic unit is the yuan (¥). Banknotes come in denominations of 100 yuan, 50 yuan, 20 yuan, 10 yuan, 5 yuan, and 1 yuan. Coins are available in denominations of 1 yuan, 5 jiao (0.5 yuan), and 1 jiao (0.1 yuan). While cash is still widely accepted, especially in smaller shops, markets, and some
rurl areas, electronic payment has become the dominant way of payment in most parts of the country.
Payment Methods
Mobile Payment
Mobile payment has revolutionized the way people in China conduct transactions. The two most popular mobile payment platforms are Alipay and WeChat Pay.
Alipay: Developed by Ant Financial, Alipay offers a wide range of services. It can be used for various purposes such as shopping in physical stores, online shopping on e – commerce platforms like Taobao and Tmall, paying utility bills (such as electricity, water, and gas), and even for booking transportation tickets. It is extremely popular across the country, from large – scale shopping malls in big cities to small street vendors in rural areas.
WeChat Pay: Integrated within the popular social media app WeChat, WeChat Pay has a vast user base. It has similar functions to Alipay. In addition to payment for daily purchases, it is also commonly used for person – to – person transfers, which is very convenient for splitting bills among friends or family. It is widely accepted in restaurants, convenience stores, and many other business establishments.
Other Electronic Payment Methods
UnionPay: China UnionPay is a major payment network in China. UnionPay cards can be used in ATMs for cash withdrawals and in most merchants that accept card payments. It also offers mobile payment options like QuickPass, which allows for contactless payment. UnionPay is not only popular in China but also widely accepted overseas in many countries and regions.
Online Banking: Many Chinese banks provide online banking services. Customers can transfer money, pay bills, and conduct other financial transactions through their bank’s official websites or mobile banking apps. This method is more suitable for more complex financial operations and is mainly used by individuals who are more familiar with online financial management.
Traditional Payment Methods
Cash: As mentioned before, cash is still in use, especially in some places where the owners may not have access to electronic payment devices or prefer cash transactions. However, its usage has been gradually decreasing with the rise of electronic payments.
Bank Cards: Debit cards and credit cards issued by Chinese banks are widely used. Most merchants, especially larger ones, have card – payment terminals. Visa and MasterCard are also accepted in some international – oriented hotels, shopping malls, and high – end restaurants, but their acceptance rate is lower compared to domestic bank cards.
Scope and region of application
Mobile payments like Alipay and WeChat Pay are almost universally accepted in urban areas across China. In big cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, you can use them to pay for almost everything, from a cup of coffee at a local café to high – value purchases in luxury stores. Even in small towns and rural areas, an increasing number of merchants, including local grocery stores, street food vendors, and farmers’ markets, have started to accept mobile payments. UnionPay cards are also widely accepted in most commercial establishments, both in urban and rural areas. However, in some very remote and underdeveloped areas, the availability of electronic payment methods may be limited, and cash may be the main or only option.
Conditions and steps for foreigners to open mobile payment
For Alipay
Eligibility: Foreigners need to have a valid passport and a Chinese bank account (either a debit card or a credit card). Some banks in China, such as the Industrial and Commercial Bank of China (ICBC), Bank of China, and China Construction Bank, offer services for foreigners to open bank accounts. The requirements for opening a bank account usually include presenting a valid passport, providing proof of address in China (such as a rental contract), and sometimes a work permit or student ID.
Download and Registration: Download the Alipay app from the official app store (either iOS or Android). Open the app and click on “Sign Up”. Choose the option for international users. Enter your mobile phone number (a Chinese mobile number is recommended, but some international numbers may also be accepted). Then, create a password.
Linking a Bank Card: After registering, log in to your Alipay account. Click on “My Card” or a similar option to add a bank card. Enter the details of your Chinese bank card, including the card number, expiration date, and the CVV code. Alipay will send a verification code to the mobile phone number associated with your bank card. Enter the code to complete the card – linking process.
For WeChat Pay
Eligibility: Similar to Alipay, you need a valid passport and a Chinese bank account.
Download and Registration: Download the WeChat app. Open the app and sign up. If you already have a WeChat account for social use, you can directly log in. Go to the “Me” section and click on “Pay”.
Linking a Bank Card: In the payment section, click on “Add Bank Card”. Enter your bank card information as required, including the card number, name as it appears on the card, expiration date, and CVV code. WeChat Pay will send a verification code to the mobile number linked to your bank card. Enter the code to complete the card – linking process.
Payment Precautions
Security: When using mobile payment, make sure to protect your device with a strong password or biometric authentication (such as fingerprint or face recognition). Do not share your payment passwords or verification codes with anyone. Be cautious when using public Wi – Fi for payment transactions, as it may pose security risks. It is recommended to use a secure and trusted network.
Transaction Records: Keep track of your payment transaction records. Both Alipay and WeChat Pay provide detailed transaction histories. Regularly check these records to ensure that all transactions are legitimate. If you notice any unauthorized transactions, contact the customer service of the payment platform immediately.
Currency Conversion: If you are using a foreign – issued bank card for payment in China, be aware of the currency conversion fees. Some banks may charge relatively high fees for converting foreign currencies into RMB. It is advisable to check with your bank in advance to understand the fee structure.
In conclusion, payment in China has become extremely convenient, especially with the prevalence of mobile payment. Foreigners can easily adapt to the local payment methods by following the steps mentioned above, and enjoy a seamless shopping and payment experience in this vibrant country.