Payment Facilitation in Progress for Foreigners in China
Author:RONG Rong and ZHANG Manjing
The surge in foreigners traveling to China underscores the country's ongoing commitment to promoting high-standard openness and fostering greater interactions between Chinese citizens and international visitors. This year, to facilitate easier travel, work, study, and living conditions for foreigners in China, various departments have introduced numerous supportive policies. A crucial aspect of these efforts has been addressing barriers in payment services for foreigners in China. Significant progress has been made to ensure swift payments.
China Forex reporters conducted on-site visits at several popular tourist and shopping destinations in Beijing. The findings revealed that whether through cash payments, card payments via POS machines, or mobile payments, both the "hardware" and "software" for payments by foreigners have significantly improved, making the payment process smoother. These positive changes are driven by the optimization and innovation of business processes and product functionalities by banks and payment institutions. Additionally, the continuous efforts and initiatives of foreign exchange administrators, guided by the principles of promoting convenience and enhancing openness, have played a pivotal role.
Various Methods Enhance Smooth Experience
Beijing-based travel veteran SUN Lan (alias) reveals that foreign countries generally have a more customary attitude towards the use of cash and bank cards when it comes to payment experiences.Having lived in a European country for a month, she noticed significant differences in payment habits. Contrary to what she was used to in China, where she frequently used Alipay and WeChat Pay, she found that locals abroad preferred cash or bank cards. Although Alipay and WeChat Pay are being promoted in some countries, not all merchants accept these payment methods, and additional fees are sometimes charged.
SUN Lan's insight highlights the often-overlooked hurdles foreigners encounter navigating payment processes in China, which has rapidly transformed into a nation widely known for its adoption of mobile payments. In the fast-paced Chinese market, cash and bank cards are becoming less important in people's daily transactions, which present significant adjustments for foreigners. While using a smart phone app for mobile payments may seem like a simple solution for these visitors, they are actually required to abandon the traditional payment methods they are accustomed to. This shift in payment methods can lead to various inconveniences, such as the complexities of card binding, navigating through different payment channels, and adapting to new payment scenarios.
Focusing on these issues, the State Administration of Foreign Exchange (SAFE) has adhered to the administrative principle of "large amounts by cards and cash as a last resort" by implementing a series of initiatives to enhance the payment experience for foreigners in China. To facilitate mobile payments, SAFE has guided payment institutions to collaborate with banks, enabling the binding of international bank cards to mobile payment tools. This allows foreigners to easily purchase daily necessities in restaurants, supermarkets, and malls by simply scanning a QR code. Additionally, payment institutions and banks have been instructed to raise transaction limits for mobile payments. For card payments, foreigners are now better supported in using their international bank cards on domestic e-commerce platforms such as Taobao and JD.com. To improve cash payments, efforts have been made to optimize the number and layout of foreign currency exchange institutions and facilities. This multi-pronged approach aims to create a payment environment where mobile payments, bank cards, and cash coexist and complement each other, thereby promoting high-standard openness.
In order to gain a deeper understanding of foreigners’ payment experience in China, China Forex reporters conducted on-site visits to various popular destinations, including the renowned Lufthansa Shopping Center, bustling waterfront merchants along the Liangma River, and Solana Shopping Park, conveniently located near Chaoyang Park. At Lufthansa Shopping Center, an Indonesian businessman used a Visa card to complete a payment at a POS machine in less than three minutes. He mentioned that during this short-term business trip, he relied mainly on cash and card payments. The hotel where he stayed features a self-service currency exchange machine and two ATMs in the lobby, making cash exchange and withdrawals easy. He has not encounter any issues with card payments and has expressed interest in trying Alipay or WeChat Pay on future visits to China.
The cashiers at the mall had excellent English language proficiency and a detailed understanding of the various payment methods available. They were also well-versed in nearby foreign exchange points and bank branches, and were able to provide assistance in binding international cards to mobile payment systems, ensuring a smooth and efficient shopping experience. Moreover, the venue has increased the transaction limit for "international cards bound" to a maximum of US$5,000 for a single transaction, with an annual cumulative transaction cap of US$50,000.
The convenience of payment methods continues to grow, extending beyond major shopping malls to smaller, more local establishments. China Forex reporters recently visited a restaurant and a shop by the Liangma River, where staff mentioned they had a special change bag and were well-versed at nearby foreign exchange points to assist guests with cash exchanges. Additionally, they guided foreign guests through the process of binding international cards to Alipay and WeChat Pay. Many foreign customers have successfully completed mobile payments with their assistance.
At Solana stores, payment guides designed to facilitate transactions for foreigners are readily available. Cashiers are equipped with POS machines that accept international cards and provide English guides to help foreigners bind their cards to mobile payment apps. This comprehensive approach ensures that payment processes are smooth and accessible to foreigners.
Regulatory departments create an environment conducive to the prosperity of the market
The enhancement of the front-end payment experience is the result of coordinated efforts by regulators, banks and payment institutions to facilitate smoother transactions. For users, making a payment—whether scanning a QR code or swiping a card—might seem simple. When conducting transactions such as offline purchases and online shopping, this procedure involves moving funds from the u