After last week's policy briefing on payment method optimization, a State Council document said: “The necessary hardware and software reform work to support foreign bank card payments should be accelerated, and touchless payment methods should be accelerated. The possibility of developing the same should be considered.”
“Bank card payment institutions will be required to collaborate with international payment platforms.”
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The document also calls for tougher penalties for stores that refuse cash, and increased provision of currency exchange and cash services to ensure “seamless connectivity” between domestic and foreign payment markets. also stated clearly.
Banks and payment institutions were also asked to simplify account opening procedures.
Following the release of the State Council document, top players in China's digital payments market, including Alipay, WeChat Pay, and UnionPay, issued statements pledging to improve their services in accordance with the guidelines.
But Joe Mazur, a senior analyst at Beijing-based consulting firm Trivium China, said this approach “gives foreign companies an easy but small victory instead of addressing their main concerns” about China's He said this is part of the efforts of policymakers.
We welcome further steps to address remaining challenges, such as differences in payment practices and legal environments.
“Easing payments for foreigners could help margins, but the main concerns foreign investors have about China, including a slow economic recovery and concerns about personal safety,” Mazur said. It hasn't been addressed.”
Raffa Vincenzo, vice president of the Italian-Chinese Economic Association, described the document as a “positive step” but said more work was needed.
“At the same time, we welcome further steps to address remaining challenges, such as differences in payment practices and legal environments, to build a fair and sustainable environment for all,” he said. .
The Chinese government has vowed to further remove financial barriers for foreigners and improve access to financial markets for foreign companies, against a backdrop of challenges in attracting tourists and foreign investment after the easing of coronavirus restrictions last year.
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Due to the Chinese government's strict financial and data controls, China has restricted the use of foreign bank cards for many years.
According to the state-run Xinhua News Agency, the domestic penetration rate of mobile payments has reached 86% in the country, but non-mobile users and foreigners who were unable to use payment methods such as Alipay and WeChat Pay without a local bank account people are still facing. hurdle.
In China, mobile devices are used to pay for everything from food deliveries to holidays.
Furthermore, data company Statista announced in January last year that although only over 64% of Chinese internet users over 50 have used mobile payment services, many Companies no longer keep coins for cash transactions, he said.
The People's Bank of China and various ministries have set up a working group to facilitate payments for foreigners.
