Mobile payment in China: Alipay, WeChat Pay, digital yuan

In Germany mobile payments have been debated for years; in China they have long been a fact of daily life. Handelsblatt correspondent Stephan Scheuer explains how people in Beijing get by without cash.

China is a land of contrasts: on one side, traditional markets where farmers haggle over their goods; on the other, modern metropolises with high-speed trains and super-apps. But the majority of Chinese people have one thing in common: they pay for almost everything with their smartphone.

Questions and answers about mobile payment in China

Last updated May 2025

How does mobile payment work in China?

Mobile payment has become the norm in China. By 2019, according to the central bank, around 86 per cent of the population were already using mobile payment services – and by 2025 the number is even higher: more than one billion people in China now pay by smartphone, even for tiny amounts. Only a handful of people still carry cash regularly.

The principle is simple: users link their bank or credit card to an app – typically Alipay or WeChat Pay. The app generates a QR code which is scanned at the checkout, or alternatively the user scans the merchant’s code. The transaction is processed within seconds. Whether at a traditional market, in a taxi, at the supermarket or from a street vendor: a single scan and everything is done.

This convenience has meant that mobile payment has almost completely replaced cash. In cities such as Beijing and Shanghai there have even been cases of merchants refusing to accept cash – even though that is not permitted by law. The central bank has repeatedly stressed that cash, as legal tender, must be accepted everywhere.

Which companies are the key providers?

The two dominant providers are WeChat Pay (from tech giant Tencent) and Alipay (from Alibaba’s Ant Group subsidiary). Together they hold over 90 per cent of the mobile payments market. Both apps now offer far more than just payments: transfers, insurance, travel booking, appointments – everything is integrated.

WeChat Pay is built into WeChat, the messaging and social app with over one billion monthly active users. Alipay is closely linked to Taobao, China’s largest online shopping platform. Both services can be conveniently connected to Chinese bank accounts – and since recently also to foreign credit cards.

What can be paid for by smartphone in China?

In short: almost everything. Whether at the supermarket, a restaurant, in a taxi, at the cinema, for rubbish collection fees, at the weekly market or from a street vendor – QR codes are everywhere. Even beggars stick QR codes on cardboard or signs to receive donations digitally.

Sharing services such as bicycles or electric scooters also run via these apps. Users scan a code on the bicycle, it unlocks automatically, and at the end the amount is charged automatically. Public transport, petrol stations, electricity or water bills, pharmacies – all of this can be paid for by smartphone. The flow of money is entirely digital.

Can travellers in China also pay by phone?

Yes – and this is one of the most important developments of the last two years. Previously it was extremely difficult, as a Chinese bank account and a Chinese phone number were required. Since 2023/2024 both Alipay and WeChat Pay have opened their systems to foreign visitors. You can now add a Visa or Mastercard (credit or debit card).

To do this you need to:

Download the relevant app (Alipay or WeChat) from the App Store.
Register with your passport and phone number (foreign numbers accepted).
Link your credit card (Visa or Mastercard).
Pay by QR code in shops – just like a local.

The system works surprisingly well. However, some instructions in the app appear only in Chinese, and help from a local or good preparation can be useful. The QR code approach also takes some getting used to: almost everything works via scans rather than traditional card terminals.

Further information:

Is a Chinese bank account required?

No – since the opening for tourists, an international credit card combined with a passport is sufficient. There are, however, some limitations:

Exchange fees can be relatively high.
There are sometimes limits on maximum transaction amounts.
Not every merchant supports card payments via the tourist model.

An alternative: China’s central bank offers the e-CNY app – the wallet for the digital yuan. Foreign Visa and Mastercard cards can also be linked there. This makes e-CNY a useful additional option for travellers.

Further information on the digital yuan:

What is the digital yuan (e-CNY)?

The digital yuan, also known as e-CNY, is China’s state-issued digital currency. Unlike Alipay and WeChat Pay, which enable bank transactions through apps, e-CNY is genuine central bank money – digital cash.

The advantage: no Chinese bank account is required; the e-CNY app can be used directly with foreign phone numbers and credit cards. The payment method is also QR-code-based and works even offline (via NFC or Bluetooth), which is particularly useful in rural areas or where the network is unavailable.

So far e-CNY holds only a small market share compared to the major platforms, but it is being strategically expanded. By 2025 it can already be used reliably in pilot cities and many tourist centres.

Is biometric payment (e.g. facial recognition) used?

Yes – and increasingly so. Many fast-food chains and supermarkets have facial recognition devices. Once registered, a brief look at the camera is enough for the amount to be automatically deducted from the wallet. Alipay in particular has promoted this system under the slogan “Smile to Pay.”

At the same time there are data-protection concerns. In 2025 China’s data-protection authority introduced rules stating that biometric payment cannot be made compulsory. Those who do not wish to use the feature can continue to pay manually by app or QR code.

Are there alternatives to Alipay and WeChat Pay?

Yes – several. In everyday life for most people, however, they play almost no role:

UnionPay Cloud QuickPass: the state-backed service is of most interest to traditional bank customers.
JD Pay and Meituan Pay: platform-specific wallets for purchases or food delivery orders.
Douyin Pay: from TikTok parent company ByteDance, mainly for in-app payments within the Chinese Douyin app.
e-CNY: the state digital currency, as described above.
Apple Pay / Google Pay: technically available in China, but with very low adoption.

What regulatory developments are there?

The Chinese government has intervened strongly in the fintech sector since 2020 – including by restructuring Ant Group (Alipay) and imposing billion-euro fines on Tencent and Alibaba.
Since 2023 platforms must make their QR codes interoperable – meaning a single code can support multiple payment services.
The integration of the digital yuan into existing platforms is politically desired and technically under development.
Facial recognition cannot be made compulsory – alternative methods must be offered.

Further links on regulation:

This page was last updated in May 2025 and is based on publicly available sources including China’s central bank (PBoC), SCMP, Caixin, Reuters and Handelsblatt.