For anyone who has visited China since 2016, the prevalence of mobile payments is likely to have stunned them. Chinese consumers now spend 90 times more on their smartphones than Americans according to Forrester Research. Everything from restaurants, to clothes, to hotels, to borrowing a bike is paid for with the simple scan of a QR code in a payment app – a different process than contactless payments at home. A year ago, mobile payments accounted for 45% of purchases in McDonalds’ 2,400 China restaurants, and usage has soared since. There are vendors who no longer accept cash and cards anymore and even beggars have a personal QR code handy for passers-by.
As recently as 2010, China was predominantly a cash-based society. It was not uncommon for Chinese to stow stacks of red bills under the mattress as they had little trust or patience for the banking system. Credit card companies worked hard to change this by providing countless incentives to lure consumers onto plastic, yet just 15-20% have ever signed up. The majority of consumers leapfrogged credit cards to go straight to the much more convenient and widely accepted mobile payment apps.
Yet even with the explosive growth of Chinese mobile payments abroad, it continues to be the area most in need of improvement in overseas markets, according to a Hotels.com survey of Chinese travellers.
Payment methods is the top-equal factor influencing Chinese travellers’ purchasing decisions overseas – more important than price according to Nielsen. This is supported by an iResearch Global study which found 67% of all Chinese tourists say they prefer to use mobile payments when travelling. The same study found they are four times more likely to buy if QR payment is an option, when compared to credit card and cash.
For many Chinese tourists, students and migrants, the Alipay or WeChat Pay logo is a familiar beacon, an accreditation that shows a business cares about them, and is servicing their needs. It helps the feel-good factor that not only increases their willingness to spend, but also advocacy of a business.
Of all the things you can do to help Chinese sales, accepting payments is arguably the quickest win. We are fortunate in New Zealand that through Smartpay you can integrate Chinese payments into compatible point of sale systems with a simple update to your terminal software.
The seamless integration allows businesses to accept Chinese mobile payments with a QR code to scan, providing a very similar experience to how Chinese pay in their homeland. Visitors will even have the ability to pay in CNY and see the transaction in Chinese. With no fixed terms and merchant fees lower than equivalent payments with credit cards, it seems like a no brainer.
Smartpay’s simple and seamless QR payment solution makes it easy for you to take QR code payments on your Smartpay Terminal. There’s no sign up cost and no minimum term. Learn more about adding Alipay and WeChat Pay to your EFTPOS terminals.