China to bring down payment barriers for foreigners to revive tourism
- Mobile payments limits will be increased and tourist attractions encouraged to accept cash and bank cards, central bank says
- Platform operators must also accept more cards issued by foreign banks
The central bank said on Friday that foreigners would be able to spend up to US$5,000 on a single mobile payment transaction, up from the previous US$1,000 limit.
The annual mobile payment ceiling for foreigners would rise from US$10,000 to US$50,000, putting them on a par with Chinese nationals, according to the People’s Bank of China.
Major tourist attractions across the country will upgrade payment facilities to accept the range of transaction methods, from mobile payments, to bank cards, and cash.
Hotels, restaurants, retailers, public transport and taxis must also accept cards and cash, and foreign currency exchange services will be improved.
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“We want to share with foreign friends the mobile payment method that we Chinese like the most, while respecting their habit of making large payments via bank cards,” PBOC deputy governor Zhang Qingsong said.
Zhang added that cash payments must be accepted, and Chinese banks and financial institutions were encouraged to allow foreigners to open accounts.
“We encourage current payment methods, future payment methods and traditional payment methods to develop in parallel and complement each other,” Zhang said.
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China has become a largely cashless society, with mobile payments the most common daily transaction method among China’s some 940 million mobile internet users.
Mobile devices are used to pay for everything from groceries to holidays. Few businesses accept international cards, and many no longer keep change for cash transactions.
But this has been a barrier for foreigners, who are locked out of Chinese mobile payment platforms by Beijing’s rigid financial and data control laws and have to rely on cash and foreign bank cards.
To address the problem and stimulate tourism, the central bank and various ministries have established working groups to make payments more convenient for foreign travellers.
Major Chinese mobile payment operators, such as Alipay and WeChat Pay, have been instructed to accept more cards issued by foreign banks and simplify users’ identity verification process.
“We will give guidance to the payment operators … so that mobile payment, which is widely used by Chinese people, can work and work well with foreigners, and our foreign friends will be happy and willing to use it,” Zhang said, adding that the central bank would strengthen their risk control over transactions.
