Queueing at the Post Office for renminbi? You might want to pack a spare power bank instead. China is becoming a cashless society, thanks to the phenomenal rise of digital wallets Alipay and WeChat Pay linked to Chinese bank cards.
Hardly a week goes by without an account emerging somewhere online of a Chinese taxi driver / noodle vendor / street artist / landlord accepting payments through the phone. It’s ubiquitous. A Shanghai friend tells me no one carries cash in her city anymore, and even her granny is a convert. There’s also a “Cashless Day” on 8 August to perhaps convince remaining luddites, though quite what’s in store for that is anyone’s guess (bonfires of paper currency?).
I don't even have a wallet. There is once I have to borrow cash from a passerby and pay her back via WeChat. Friend says good pickup line.
— Pei Li_李沛 (@teamlipei) July 17, 2017
The numbers are eye-watering, as you might expect of the world’s most populous nation. WeChat Pay, the payment wallet inside the WeChat app, is used by 600 million people (equivalent to 10 United Kingdoms). Alipay is just behind with more than 450 million users.
Considering that many of us in 2017 are still scribbling in chequebooks, and digging out coins from the back of the sofa (although there are signs of change – no pun intended), China’s advances are impressive.
It also means that if you’re looking to visit China’s big cities, or selling goods and services to people, it’s best to keep in mind their preference for mobile.
In the UK, high-street shops have been catering for Chinese visitors for some time, with the likes of Selfridges, Holland & Barrett, The Body Shop and Harrods all accepting Alipay in their stores.
Tourism organisations are also getting in the act: in July, the Royal Edinburgh Military Tattoo joined WeChat Pay as part of its goal to offer online ticketing for Chinese visitors, and later take the military showcase to China in 2020.
The fintech startup recently announced a deal to help online retailers worldwide sell more easily to people in China. Users may reportedly now activate Alipay and WeChat Pay on their dashboard and accept payments from either system.
Amidst much talk about the “Belt and Road” initiative – or a new Silk Road forged across land and sea – it seems as if the biggest trade routes between China and the rest of the world are being developed through mobile technology, something we can all relate to.