On the other hand, as he travels between Fujian, Guangdong, and Sichuan provinces, using cold, hard cash was a hassle for him. After all, the only time he opened his wallet was mainly to pay street vendors, but even stall owners and hawkers often prefer mobile payments. They rarely accept international cards, and Cheung has noticed that many do not offer change for cash transactions.
“Frankly, I think this is the difficulty that comes with being a foreign tourist,” Chan lamented. “Chinese payment methods mainly cater to the demands of local residents.”
Data shows foreign tourist numbers have not yet reached China's pre-pandemic levels
Data shows foreign tourist numbers have not yet reached China's pre-pandemic levels
The kinds of payment problems encountered by Zhang and other outsiders pose a major challenge for the Chinese government, which is seeking to foster people-to-people exchanges as part of a broader effort to improve foreign relations and boost the country's economic recovery. ing.
According to immigration statistics, China will record approximately 424 million people entering and exiting the country in 2023, an increase of 266% compared to 2022, when the country was hit by a lockdown. Of these, 206 million were mainland residents, and 183 million were tourists from Hong Kong, Macau, and Taiwan. The remaining 35.48 million trips were made by foreigners from other countries, accounting for only 8.37% of the total.
Ease of payment, or lack thereof, deters foreigners from visiting China, in addition to other considerations such as Western countries' push for separation from China, Beijing's national security concerns and related crackdowns. This is cited as one of the contributing factors.
However, within the larger framework of deterrence, making it easier for foreigners to steal one's own money should be one of the easiest hurdles to clear, but problems still remain.
In July, two major mobile payment providers, WeChat Pay and Alipay, enabled international travelers to link credit or debit cards issued by Visa, Mastercard, and other major international operators. This comes after years of restrictions on the use of foreign bank cards. Beijing's strict financial and data management.
With this change, even overseas travelers who do not have a Chinese bank account can now pay with WeChat Pay or Alipay in the same way as local residents, including registering with their real name.
More than 95% of Chinese residents have a personal bank account, and mobile payment penetration has reached 86%, one of the highest in the world, according to central bank data.
State media outlet Xinhua News Agency said the data reflects “how easily and quickly people in both urban and rural areas can access modern financial services.”
That's all well and good for the majority of Chinese people, but what about tourists and those who struggle to use or cannot afford mobile devices?
Outsiders who link international cards to mobile payment apps will be charged a 3% service fee for transactions over 200 yuan (US$28) and cannot process a single transaction over 6,000 yuan (US$845).
“Some foreign tourists don't accept the use of mobile payments,” said Charlie Chen, who runs EasyTour China, a travel agency based in Guangxi.
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China expands visa-free travel to six new countries
China expands visa-free travel to six new countries
Chen said many tourists, especially those from Europe and the United States, are reluctant to enter personal data into mobile payment apps due to privacy concerns, while travelers from Southeast Asia are reluctant to enter their personal data into mobile payment apps in China. He said that there is a relatively high tendency to use it.
Digital payments have also become a challenge for China's elderly, as society widely accepts cashless transactions. More than 75% of elderly people across China frequently use cash, and the proportion of elderly people in rural areas using cash is even higher at 80.4%, central bank officials said.
In major Chinese cities such as Beijing and Shanghai, international cards issued by overseas operators such as Visa and Mastercard can be used in business districts, popular tourist spots, and transportation hubs where foreigners are most likely to spend money. Is possible.
Easy Tour China's Chen also said fewer merchants now accept international credit cards, including some three- and four-star hotels, compared to before the pandemic.
“Cash remains the primary payment method for international travelers,” Chen said.
Visa-free travel to China could provide the 'extra stimulus' Beijing seeks
Visa-free travel to China could provide the 'extra stimulus' Beijing seeks
The main places international travelers can exchange money are airports and banks. However, travelers can be held back by limited bank hours, excessive paperwork, and unexpected documentation requirements.
It has also become more difficult to withdraw cash from ATMs, Chen added.
The main reason for this is the steady decline in the number of ATMs across the country since 2019. According to central bank statistics, the total number of ATMs nationwide fell below 1 million for the first time in 2021, and fell below 900,000 in 2022. Thousands more were eliminated each quarter last year.
The People's Bank of China will optimize payment methods for international travelers by providing more convenient mobile payment services and expanding acceptance of international credit cards, representatives of the People's Bank of China said at its annual business meeting in early January. promised.
However, no details or timeline regarding such changes have been disclosed.
