China’s Rush to Mobile Payments Left Some Citizens Behind

The future is digital, and no country has embraced that ideology more than China. Most vendors in the country no longer accept cash. Instead, everyday transactions are conducted by scanning a QR code and paying through a mobile wallet. While this process is straightforward for most banked Chinese citizens, it creates a pain point for visitors who can’t access the country’s mobile payments platforms, like WeChat Pay and Alipay. However, it isn’t just tourists who are affected. Many Chinese citizens who aren’t as fluent in technology, or don’t have access to it, are left with no way to pay for essential items. Because that includes a large portion of the country’s elderly population, Chinese officials were prompted to take action. The People’s Bank of China recently issued a directive to authorities that retailers who sell day-to-day items—including supermarkets, pharmacies, and restaurants—should be able to accept cash.

Bridging the Gap

The mandate isn’t likely to hinder the country’s end goal of becoming a fully cashless economy. Instead, it’s intended to bridge the gap until digital platforms are more widely adopted. This directive also addresses the challenges tourists have encountered and represents the latest step in a concerted effort to streamline the visitor experience in China. The country has been working to boost tourism, especially after its strict COVID regulations caused a slowdown. These efforts are beginning to yield results. Alipay reported a tenfold spike in mobile wallet usage after it supported connectivity to 10 foreign mobile wallets. China also announced the introduction of 50 new taxis in Shanghai, with roughly 2,000 more expected by late 2024. These taxis will support payment via foreign credit cards, while also accommodating cash payments.

Cashless Status Quo

While the issues tourists face can largely be solved through partnerships with overseas financial platforms, the solution might not be so simple for elderly Chinese citizens. Although the government has mandated that retailers accept cash, there are doubts about how closely the new rules will be followed or enforced. Chinese news agency Xinhua reported that just 3.7% of the money in circulation in the country is cash. If there’s only lukewarm enforcement of the new directive, vendors may not have much incentive to veer from the cashless status quo.