Which online payment solutions in China are the most convenient?

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Which online payment solutions in China are the most convenient for foreigners?

as we all know, China’s online payment industry is developing extremely fast, including a huge shift to mobile devices such as smartphones and tablets. Due to this development, it is predicted that this year the trade volume of mobile payment in China will reach 712.3 billion RMB.

As one can imagine, not only Chinese people want to take advantage of the exploded e-commerce market in China. We often get questions from foreign individuals which platforms they can use. Therefore, in this post we introduce China’s most popular online payment platforms, how foreigners can start using them and which potential issues they might face.

What are the most popular online payment solutions in China?

Based on iResearch’s data, the leading third-party online payment platforms in 2014 were Alipay and Tenpay, whereas Chinapay and 99Bill took up the third and fourth place.

Alipay

Cooperating with 85 banks and attracted over 500 million users, Alipay is the absolute dominant online payment platform in China. It is not an exaggeration to say that an Alipay account can meet all your online payment needs in China. For buyers on Taobao, Tmall and so on, this escrow service is safe and guaranteed. For non-Alipay users immediate transfer service is also provided, giving clients options to choose. Alipay users can pay through credit cards, Chinese debit cards, and their Alipay account. Users without an Alipay account might ask friends or family for help.

Tenpay

Where Alipay is by far the number one online payment solution, Tenpay might be considered to be the most serious competitor. Being part of Tencent, developer of China’s most popular instant messaging apps WeChat and QQ, Tenpay was born with a tremendous client base, and has gained a competitive foothold in the market. WeChat’s payment options allow you to buy their added-value services – including stickers and games, subscription to WeChat’s public account, and services and goods from WeChat’s corporate applications. Their successful Chinese New Year “Sending Red Pocket” campaign again increased people’s awareness and usage of WeChat’s mobile payment service. Proximity payment is also made available through WeChat’s QR code solution. Furthermore, Tenpay allows its users to use QQ points or credits, making itself a great solution for all related business, for instance, QQ games.

Chinapay
Chinapay is the online payment platform of China UnionPay, the official Chinese bankcard association. All Chinese bankcards carry a China UnionPay sign, and the majority of merchants support UnionPay cards’ online payment. Users can finish the process through inserting their card number, identity number and phone number without any further registration. Keep in mind that Chinapay is not as widely used as Alipay or Tenpay. For people who already have an Alipay or Tenpay account it is not essential to register for a Chinapay account.

99Bill
99Bill provides comprehensive overseas payment solutions for businesses and more than two million merchants already registered. For 99Bill users, foreigners or Chinese, it is relatively easy to use the payment system of 99Bill, although for ID verification you do need a Chinese ID number. You could consider to ask a Chinese friend or colleague to register. Foreigners are able to pay with their international bank card (Visa or Mastercard).

How can non-Chinese nationals open relevant accounts?

Alipay
Previously, an Alipay account was only available for citizens of Malaysia, Singapore, Hong Kong, Macao and Taiwan. Recently, it also became available for citizens of Australia, Canada, France, Germany, Indonesia, Italy, Japan, Korea, New Zealand, the Netherlands, Philippines, Russia, Sweden, Thailand, UK, Ukraine, USA and Vietnam. If you do not have a passport or ID number of one of these countries, you could consider to ask a Chinese friend to verify the Alipay account using his/her Chinese ID number. If you already have one, the process to create an account is relatively easy. Below you can find an overview of the necessary steps:

With the Alipay account, you also have access to Alipay Wallet, the most popular mobile payment app (for Android), to experience an easy, secure, fast and totally free payment solution while walking around. The app allows you to store and manage your credit cards, gift cards and discount coupons electronically. The Alipay Wallet provides the possibility to transfer funds via the Internet, through barcode recognition, QR code recognition and the so-called “sound wave payment”. This payment system utilizes white noise generated by one smartphone to carry digital information to another Alipay Wallet-equipped smartphone in the proximity. These Online-to-Offline (O2O) options are one of the key selling points of the Alipay Wallet.

Tenpay
Foreign users can go to Tenpay’s website and download the “contact us” form. File a request for opening a Tenpay account and send it to [e-mail] and Tenpay will respond within five days.

Since version 5.3.1.16, WeChat users just need to follow a few simple steps to add a card and activate the wallet. This can be achieved with basically all types of Chinese bankcards. Below you can find an overview of all steps:

Foreigners could have difficulties with the wallet option as it might not be automatically visible in their WeChat. If you change your language settings (Settings > General > Language) into Chinese, the wallet will automatically be visible if you go back to the “Me” page. Select 钱包 in the most right, top corner of the screen. In the next screen you find a balance. Underneath this you can press “+添加银行卡” after which you have to fill in your bank account number and you can follow the abovementioned steps.

99 Bill
As mentioned, for foreigners it is possible to create a 99Bill account, however, you do need a Chinese ID verification number. A Chinese friend or colleague could therefore be helpful. See the payment steps below to guide you through the process:

What kind of problems foreigners may encounter?

No matter which online payment solution, for foreigners there is a great chance to face two potential problems: language and ID verification.

Among our recommendations, only WeChat runs in multiple languages, while both Alipay and Tenpay offer English access for business accounts. However, problems might be faced in case one needs to contact the customer service. In general, the employees on the other side of the line will not speak English and help from a Chinese friend or colleague could be helpful.

As for ID verification, Alipay requires foreign users to upload a scan of their passport, including the visa page, which will be manually checked by Alipay. Therefore, it takes a few days before your ID has been verified. Foreign users do not need to open a Chinese bank account, since Alipay accepts international cards like Visa and MasterCard. Please note that a 3% transaction fee will be charged.

For WeChat it is much simpler; ID verification occurs automatically when you want to add a card to pay or transfer money. Therefore, you can start using WeChat wallet directly. Different banks provide different options and ID verification is available for cards from ICBC.

Which platform should you choose?

Among the various online payment solutions, Alipay is definitely the first choice. This platform is relatively easy to setup and is widely spread over China’s e-commerce sector. If you are interested in trying something new, WeChat wallet is our second recommendation, based on its popularity and great potential. Especially the development of paying through QR codes is interesting and might soon become the most convenient solution.

Needless to say, for businesses operating in China or targeting the Chinese consumers from abroad, an e-commerce presence is an absolute must. To optimize your operations one should be aware of China’s most popular payment solutions and know how to integrate them into your operations. On the other side, for foreign customers who are planning to stay for a longer period in China it is helpful to set up an Alipay and WeChat wallet account for their online shopping.

If you have any questions in regard to mobile payment in China, please do not hesitate to contact Maxxelli Consulting at [e-mail]

source: http://www.maxxelli-consulting.com

Which online payment solution in China are the most convenient for you? Welcome to share your stories by commenting below(click "写留言" at the bottom of the page)!
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