China Raises Mobile Payment Limits for Foreign Visitors
China announced a significant increase in mobile payment limits for foreign visitors on Friday, aiming to address payment challenges and enhance their overall experience in the country. This move comes as China seeks to improve accessibility and convenience for international travelers, recognizing the widespread adoption of mobile payment within its borders.
Zhang Qingsong, deputy governor of the People’s Bank of China (PBOC), the country’s central bank, announced the policy changes. Major payment institutions like Alipay will be guided to raise the single transaction limit for foreigners using mobile payments in China from $1,000 to $5,000, with the annual cumulative transaction limit growing from $10,000 to $50,000.
These changes are part of a wider effort by the Chinese government to address the difficulties faced by many foreign visitors who rely on traditional methods like bank cards or cash for payments. Recognizing that mobile payment has become the dominant payment method in China, the PBOC is actively facilitating its use by foreign visitors.
This approach includes supporting payment institutions to streamline the process of linking foreign bank cards to mobile payment accounts, as well as simplifying identity authentication procedures. Additionally, the central bank has previously addressed the issue by simplifying bank card payments for large transactions, promoting mobile payment options for smaller purchases through QR codes, and guaranteeing cash as a last resort.
Data from the central bank reveals that nearly 4 million foreign visitors utilized mobile payment in China last year, conducting over 70 million transactions with a total value exceeding 10 billion yuan (approximately $1.38 billion).
These policy changes are further bolstered by a guideline approved by the State Council, China’s Cabinet, on February 23rd. This yet-to-be-published document aims to promote the acceptance of foreign bank cards, guarantee cash accessibility, enhance the convenience of mobile payment options, and optimize account services for foreign visitors.
Beyond the central bank, other government entities are also contributing to this initiative. Shi Zeyi, head of the Ministry of Culture and Tourism’s international exchange and cooperation bureau, stated that the country will maintain offline, manned ticketing services at tourist attractions while optimizing online and offline payment experiences for foreign tourists.
These efforts coincide with China’s recovering inbound tourism sector. During the recent Spring Festival holiday, the country received 3.23 million inbound travelers, according to data from the Ministry of Culture and Tourism.
Liu Chunsheng, an associate professor at the Central University of Finance and Economics, believes that improving the convenience of mobile payment services will significantly enhance the experience of foreign visitors in China, as mobile payment has become an essential part of daily life in many situations. He further views these changes as a sign of China’s commitment to opening its market wider following the COVID-19 pandemic, offering more business opportunities to the global community.
The direction set by the Central Economic Work Conference held in December further emphasizes the importance of facilitating business, study, and travel in China for foreign visitors. These initiatives, including the increased mobile payment limits, showcase China’s ongoing efforts to create a more welcoming and accessible environment for international visitors.