The Nearly Cashless Country Where Tourists Will Likely Need A Mobile Wallet

While spontaneous trips have their charms, you should typically start with figuring out the logistics to plan a successful vacation. Before visiting China, you'll want to sort out how to pay for your purchases while in the country. For many destinations, you only need to exchange currency or use a credit card that doesn't have a foreign transaction fee. However, tourists face a more complicated situation in China. If you want to buy items without difficulty, you will have to download one of the popular mobile payment apps — a trickier process than it sounds.

According to a 2019 Consumer Insights Survey, mobile payments made up 86% of in-store purchases in China — and the country continues to move closer to a completely cashless society. Typically, the process involves scanning a QR code next to the item you want to buy. Not only will you find QR codes for virtual payments in supermarkets and shops, but you'll also likely use them to pay for bus fares. You may even see people asking for money on the streets using QR codes. While that might seem strange to foreigners, mobile payments are the most common way of exchanging money in China.

Technically, cash is still a completely valid form of currency in China, but that doesn't mean people like it when you try to pay that way. If you're planning your dream trip, you're probably learning everything you can about the country, its citizens, and its culture to avoid making any faux pas by accidentally bringing up a controversial political topic (like the "three Ts" to avoid in China) or embarrassing yourself by wearing a green hat. But can using the actual currency ever be wrong? While it's definitely allowed, depending on the situation, you may find locals getting annoyed with you if you try to pay them with cash.

As far back as 2017, it's been difficult to do anything from buying dinner to borrowing a bicycle without a mobile wallet. The Chinese government has consistently tried to crack down on vendors who refuse to accept cash, but in certain areas, it can be very frustrating to try to pay for anything using actual bills. It might also be more expensive for you since cash is so infrequently used, as sellers may be unable to give you change if you don't have the exact amount.

Getting set up for mobile payments in China has long been a source of frustration for visitors, but in the summer of 2023, the process got a little easier. The main apps for mobile payment in the country are WeChat Pay and Alipay; in the past, you couldn't use them without a Chinese bank account. Luckily for travelers, both now allow you to link credit cards from elsewhere in the world to pay. If you're a Visa, Mastercard, or Discover user, they should work for either app.

Now, signing up for Alipay should be as simple as downloading the app. using your email or phone number to create an account (even if your number is based outside of China) and choosing a nickname and password. You should be aware, however, that you'll have to verify your identity with your passport or ID before you can add your credit card, and there are spending limits for foreign travelers. Sometimes, users still have trouble paying with foreign bank cards, so you may want to have some cash as a backup, just in case.