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Is cash on the way out in China? [Copy link] 中文

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Post time 2019-8-11 15:31:04 |Display all floors
This post was edited by CeciliaQ at 2019-8-11 15:32

Mobile payments have taken China by storm. Whether it's shopping, buying a meal in a restaurant, taking a taxi, purchasing cinema tickets or paying utility bills, almost every financial transaction can be managed on a mobile phone by scanning a QR code.

Over the past five years, as cash and bank cards have been abandoned in favor of hundreds of millions of virtual wallets, China has emerged as the world leader in mobile payment, in terms of users and value.


In 2018, transactions conducted via the country's third-party mobile payment platforms were worth a staggering 190.5 trillion yuan (27.6 trillion U.S. dollars). Data from the country's central bank show that in the first quarter of 2019, the number of transactions surged by 79.6 percent year-on-year, while the total value saw a rise of over 22 percent.


Not surprisingly, it's younger people who have been most responsive to the new payment method and the greater convenience of the services offered by industry leaders Wechat Pay and Alipay. According to research conducted by the Payment and Clearing Association of China, over 50 percent of mobile payment users are under 30 years old.


By contrast, a mere five percent of users are over 50. "I don't understand how it all works with the QR codes and the phones," one elderly shopper in the eastern city of Hangzhou, told Rediscovering China.


Convenience aside, analysts cite the relative immaturity of the credit card market as a key factor encouraging China to embrace mobile payment.


"In China and other emerging countries, people lack a credit history, so it’s difficult for them to get credit cards from banks," says Fanny Wu, spokesperson for Ant Financial, which operates Alipay. “Fewer people have credit cards or bank accounts, while the penetration of mobile phones is very high, so the market is great for us."


With 583 million people using mobile payment in China last year, up 10.7 percent from 2017, clearly the market is huge, and growing – to the extent that the idea is being touted of creating a "cashless society." However, Professor Liu Zhiqin from leading financial think tank, the Chongyang Institute for Financial Studies based at Renmin University, believes it will never happen. "I don't think this is the target of our society nor of our technology," he says. "People will still need cash. Cash cannot be eliminated. But new technology can make better use of the cash; when and how to use it, to make more value."

And Alipay's Fanny Wu is keen to stress that the company's aim is not to make cash obsolete. "I think for us mobile payment is just an additional option we can provide to our users," she says. "We always think that people are entitled to different kinds of payment solutions, like cash, bank cards, mobile payment and perhaps other methods in the future, and we also believe that they have the right to choose."


Source(s): CGTN


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Post time 2019-8-11 17:19:52 |Display all floors
Its a shame that countries who are turning cashless obviously dont care about the elderly or other vulnerable people. Look at sweden if you want proof......
then there are the queues as staff have to guide people how to pay by phones......
if you want something in life get off your backside, and do it yourself!! don't rely on others to do it for you

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Post time 2019-8-11 17:47:37 |Display all floors
Yes, it is convenient to do payment through WE-CHAT when you do shopping or deal with a sum of money for a serious business. This kind of development on banking is so advanced that it is beyond our expectation decades ago!
If for kidding,let me say as the following:
Money is abstract number for which we should have worked so hard day and night!~~
Childish pure  mindset can simplify your life which let you live in a light way! Without man-made troubles you will work in high efficiency!

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Post time 2019-8-12 07:15:00 |Display all floors
There are old people who can't even answer a call on a mobile. Cash payments will not be a thing of the past, at least not for another 20 years.
Human lives mean nothing when the western warmongers see a bigger gain through war

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Post time 2019-8-12 10:26:36 |Display all floors
parcher Post time: 2019-8-11 17:19
Its a shame that countries who are turning cashless obviously dont care about the elderly or other v ...

Same is happening in China; go to any supermarket and you'd see long queues of elderlies with cash in hand at the only counter that accepts cash, other counters are for cashless payments which elderlies are not familiar with, or don't have smart phones!!  Businesses must spare a thought for those poor elderlies!

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Post time 2019-8-12 11:52:42 |Display all floors
pnp Post time: 2019-8-12 10:26
Same is happening in China; go to any supermarket and you'd see long queues of elderlies with cash ...

yes agreed
if you want something in life get off your backside, and do it yourself!! don't rely on others to do it for you

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Post time 2019-8-12 14:20:39 |Display all floors
Cashless payment may be convenient to those users but it has caused much delays at chekouts, holding up lines of shoppers.  It often fails to work, cashier has to to show user how to, or sometimes  system fails, manager has to be called to reset, etc.  I had been caught in such lines frequently.  Cash payment is fast and smooth, not hiccups.

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