Chinese people prefer to pay by mobile phone
Chinese tourism is greatly expanding these years. Results from 2016 show a 12 % increase in spending, which makes Chinese tourists the biggest spenders in international outbound tourism – especially when it comes to shopping.
The Chinese banks dealt with 8.6 billion payments from mobile services in the second quarter of 2017, which is an increase of 33.84 percent compared to the year before. The Chinese people are very accustomed to using their mobile devices as a payment method. It is a service, that they appreciate making use of when they are abroad.
To cater the Chinese tourists, multiple stores in Europe have started to offer the Chinese people’s favourite mobile payment solutions: AliPay and WeChat Pay.
What is AliPay?
AliPay is a lifestyle mobile application with more than 529 million users. The application consists of a combination of payments, finances, and shopping. The platform is owned by Ant Financial, who is a part of the Alibaba Group. With AliPay, the user is able to transfer money, collect coupons, purchase flight tickets and much more. The application features a shopping platform, where stores can promote their offers towards Chinese tourists. Here the user can locate all the stores that accept AliPay as well as get directions.
A payment with AliPay is made through QR codes that are created in the application – ready to be scanned by the retailer. Learn more by watching the video below.
Click on the image above to watch a video of AliPay.
AliPay has made its way to the Danish market
Chinese tourists are now able to pay with AliPay in a number of stores in Denmark. A few of the companies that seized the opportunity are Hotel Skt. Petri in Copenhagen and the department store, Illum. Time will show whether more stores and companies wish to cater the Chinese tourists in the near future.
What is WeChat Pay?
WeChat Pay is a mobile payment solution built into the popular multiplatform, WeChat. WeChat is a part of the Chinese company, Tencent, which ranks among the top five internet companies worldwide. The platform has 938 million active users per month – 600 millions of whom are using WeChat Pay to make mobile payments. The application has multiple features and is used for almost everything from social media platform to payments.
Similar to AliPay, WeChat Pay creates QR codes directly on the mobile device. To make a payment, the sales assistant scans the QR code and the payment is processed. Learn more by watching the video below.
Click on the image above to watch a video of WeChat Pay.
WeChat Pay arrives in Europe post to AliPay success
The popular mobile application, WeChat, has now arrived in Europe.
Munich Airport is the first spot in Germany, where Chinese tourists can make use of WeChat Pay as a payment option. Back in 2016, the airport implemented AliPay in their stores. In the course of three months’ time, the Chinese tourists had spent 92 percent more money in the airport than was usual before. With the great results, the airport now wanted to provide another mobile payment solution to cater the Chinese tourists, namely WeChat Pay.
What are the benefits for the retailers?
With AliPay and WeChat Pay’s reach into Europe and the rest of the world, retailers are able to attract Chinese tourists, as the tourists can trace their mobile payment providers directly on their mobile phones. The tourists are able to see products, opening hours and potential discounts of the different providers.
When users make a payment with either AliPay or WeChat Pay abroad, the customer always pays in Chinese Yuan (RMB), while the stores receive the payment in their local currency. This means that it is not necessary to create a Chinese bank account, as the revenue is sent to the store’s usual bank account.
The retailers in Europe who provide the mobile payment solutions, therefore, have the opportunity to brand themselves towards the Chinese tourists without any larger adjustments.
From early spring 2018, NaviPartner is ready to implement AliPay and WeChat Pay as a part of our customers’ POS solutions in order for them to attract Chinese tourists to their stores.