Student blogger Amanda Bogan, MAIS ’18, shares an overview on how mobile payments have changed daily life in China.
As anyone who has visited China in the past few years knows, mobile payment platforms such as Wechat Money ( 微信钱 ) and Alipay ( 支付宝 ) have dramatically altered payment methods and almost entirely eliminated the need to carry around cash in most parts of China. Though I was somewhat skeptical before I started using mobile payment platforms myself, I now use them every day for most of my regular purchases in Nanjing. Making mobile payments is easy, convenient, and can simplify and expedite a variety of regular transactions, such as buying lunch from local street vendors, making online purchases, or paying back a friend. While most places still accept cash, its use is becoming less and less common and storekeepers will sometimes prefer that customers pay using mobile payments, or will not be able to make change for customers paying with large bills. Below, I’ll go through the basic steps for setting up an account and some perks of using mobile payments.
Different Mobile Payment Platforms
There are two major providers for mobile payments in China: Alipay and WeChat Money, run by Chinese fintech giants Alibaba and Tencent, respectively. Almost all stores and vendors will accept both of these two payment methods, so it is possible to use only one of the two platforms and get by just fine. However, a notable exception is certain online stores and vendors. For example, JD Mall's largest shareholder is Tencent, and therefore only accepts payments via WeChat, whereas JD's top competitor, Taobao, is part of the Alibaba group, and only accepts Alipay. Personally, I only used WeChat for my first year in Nanjing, but eventually set up an Alipay account as well so I could also make purchases on Taobao.
Setting up a mobile payment account
Both Wechat and Alipay now allow registration using international bank cards, however there are some limitations on the kinds of cards that will be accepted, and you may accumulate some fees associated with converting currencies. Generally speaking, most students will set up a Chinese bank account for their time in Nanjing. (ICBC, Bank of China, and China Construction Bank all have branches located near the Hopkins-Nanjing Center.) When setting up a bank account, it is best to confirm with the bank that your account can support mobile payments. Once you have opened an account, linking your account to WeChat or Alipay is fairly simple—both apps have English versions and will walk you through setting up your account. For Alipay you simply download the app and then you will be prompted to enter the necessary personal information (such as your bank account and passport number). To link your account for using WeChat Money, start by opening up WeChat, clicking on the “Me” icon at the bottom of the screen, then select “wallet,” and then select “cards” from the top menu and fill in the necessary information.
Perks to making mobile payments
Besides the obvious perk of never needing to count your change and being able to leave your wallet at home, due to competition between the different mobile payment platforms, there are often special discounts given to users. For example, last week when I took my roommate out for dinner, the restaurant we went to offered a 15% discount if I paid using Alipay. When making regular purchases via WeChat Money or Alipay there will often be a small automatic discount taken at the time of purchases, generally ranging from a few cents to a couple kuai.
There are also popular apps such as 大众点评 and 美团 that will offer specials for local restaurants and other stores, providing you pay using WeChat or Alipay.
Most of what I know about mobile payments and buying things in China I learned from my roommate and other Chinese friends. If you have questions while getting started with mobile payments or online purchases, most Chinese student will be knowledgeable and willing to help!
Written by Amanda Bogan, MAIS ‘18
Please note recommendations on using mobile payment apps and on the specific apps mentioned above are the student’s own. The Hopkins-Nanjing Center does not endorse specific mobile payment apps.
