Visitors to benefit from payments revamp

China is expected to step up efforts to facilitate a seamless payment mechanism for foreigners and the elderly, and create a more friendly, inclusive and multichannel payment environment, experts and business leaders say.

This is not only part of the country’s continued opening-up endeavour, but is also conducive to improving the payment infrastructure so as to accelerate the building of a unified domestic market, as well as boosting consumption and people’s livelihoods, they said.

The State Council, China’s Cabinet, has issued a guideline to coordinate efforts among authorities to promote the acceptance of foreign bank cards, guarantee the use of cash, improve mobile payment convenience and further protect consumer rights while choosing payment methods and optimising account services.

Foreign visitors now can access a payment guide issued by the People’s Bank of China, featuring text and graphic instructions on using bank cards, cash, mobile payment and e-CNY in China.

No identification is required for transactions below a certain amount when foreigners use mobile payments such as Alipay, Weixin Pay and UnionPay. Some international e-wallets, such as TrueMoney of Thailand, and Naver Pay used frequently in South Korea, will be directly accepted by many merchants in China. Foreigners can also open bank accounts with passports or other valid identification at major banks such as Industrial and Commercial Bank of China.

Recent efforts by the authorities and financial institutions will help remove various inconveniences and confusion encountered by foreigners staying in China. This is increasingly important because more foreigners will work or live in China amid the country’s rapid economic development and deepened internationalisation, said Liu Chunsheng, an associate professor in the School of International Trade and Economics at the Central University of Finance and Economics in Beijing.

This is also a sign that China is devoted to promoting high-level opening up and is providing the world with more business opportunities, Liu said.

China Construction Bank said it has been customising services for the elderly, bridging the digital divide, and it also supports various valid identification documents for card issuance and use by foreigners in China. Its ATMs accept foreign cards for cash withdrawals, and branches offer cash exchange services.

The bank said it will continue to improve foreign currency exchange capabilities, strengthen the acceptance environment for foreign card payments, and collaborate with UnionPay and international card organisations to set up innovative payment solutions and provide better service to foreigners in China.

The bank said it aims to promote the development and complementary use of various payment methods, including mobile payments, bank cards and cash, to build a compatible and synergistic payment service system.

Dong Ximiao, chief researcher at Merchants Union Consumer Finance, said financial institutions and local governments are expected to further raise awareness on the issue and create a more open, inclusive, and diverse payment system and environment for all groups of people.

“The choice of payment methods and the development of payment tools should fully consider the differences between urban and rural areas and among different groups. It should not only be measured by quantity or speed, but also should respect the usage habits and rights of different groups of people,” Dong said.

The inconvenience experienced by some foreign visitors can be mainly attributed to the differences in payment habits between China and other countries, he said.

He called for China to further improve the acceptance environment for foreign bank cards, and gradually increase the number of point-of-sale terminals accepting foreign cards in key cities and important business districts.

International card organisations should reduce foreign card transaction fees and leave appropriate room for profitability for merchants, he said.

Ling Hai, president for the Asia-Pacific region, Europe, the Middle East and Africa at MasterCard, emphasised the importance of improving multiple payment channels to improve payment convenience for inbound travellers.

“The ecosystem in China has evolved into more digital wallet and QR-based, but that’s not how the rest of the world works. For any inbound traveller, behaviours are very difficult to change, and that’s a huge area still worth investment and development.”