Mobile payment, as one of the so-called “new four great inventions” of China, is growing along with the rising number of Chinese tourists overseas, as scan-and-pay for the first time exceeded cash payment, a report showed.

According to the report by Nielsen and Alipay, some 32% of transactions in 2018 were made by Chinese tourists via mobile payment, overtaking cash for the first time, and over 60% of Chinese tourists made payments with their mobile phones in locations ranging from Singapore, Malaysia, and Thailand to Europe, United States, and Australia.

Mobile payment, led by Alipay, began to flourish in China in 2015. The two giants in the business, Alipay and WeChat, are fierce competitors in China and overseas. Both companies have expanded to over 40 countries and regions, eyeing to serve Chinese tourists as well as local businesses.

As of June 2017, the number of mobile payment users reached 502 million in China and some 463 million users use mobile payment in offline scenarios, a report by China Internet Network Information Center showed.

（Photo courtesy of WeChat)

As cash-free payment becomes ordinary for almost all Chinese people – from grocery shopping to travel by train, Chinese people prefer the convenience of mobile payment. Some 90% of surveyed merchants in Singapore, Malaysia, and Thailand reported encountering Chinese customers who inquired whether mobile payment was accepted in their stores. 

In addition to serving Chinese tourists, Chinese mobile payment methods also help to boost the operations of overseas merchants. Some 58% of surveyed merchants said that after adopting Alipay, their foot traffic increased, while 56% saw improved sales.

The number of outbound tourists with a bigger travel budget and greater spending ability continues to rise. The report showed that respondents visited an average of 2.8 countries and regions, up 2.1 in 2017, while the average travel spending and budget reached $6,026 and $6,706, respectively, up 6% and 15%.