Get this: Chinese tourists made 137,000 trips to Canada in the first quarter of 2019 and on average, each tourist spent $2,300 during their trip.
Canadian vendors who accept Chinese mobile payments made the most in this tourist boom.
Chinese tourists keep very little cash on them as their go-to medium is mobile payments. In fact, if given a choice, 90% of Chinese tourists would prefer paying via their phone instead of other payment mechanisms.
The many available options, including WeChat Pay for users and AliPay for users, which are swift, safe, and above all, highly convenient – imagine how comfortable traveling must be without worrying about the cash in your wallet!
58% of the merchants who provide mobile payment saw an increase in foot traffic and 56% experienced a higher turnover. This is why if you haven’t yet introduced mobile payment as a transaction option, now might be the right time to do it.
Consumers prefer mobile payments because they no longer have to worry about currency conversions or carrying local money and keeping it safe.
Mobile payments are authorized and confirmed on your phone – a payment is transacted from the mobile wallet in exchange for goods and services.
This is undoubtedly a lot more convenient than handling and managing cash – it is safe, secure, and hassle-free.
This is why around 92% of China’s urban population uses WeChat Pay or AliPay, and the same goes for 47% of China’s rural population.
Additionally, the global mobile payment industry is expected to grow at a compound annual growth rate (CAGR) of 28.7% from 2019 to 2026.
If that isn’t enough to convince you to go mobile, know that the number of people making mobile payments will amount to almost 700 million by 2022 – cashless transactions are the new norm.
On the contrary, the U.S. is still far behind in mobile payment adoption because they have a well-established card and rewards system – whereas, for the most part, China has been a cash-based economy until now.
However, they are catching up fast – considering the massive influx of Chinese tourists and their ability to spend handsomely on shopping, local businesses would be wise to allow mobile payments.
You would not want to send a potential customer to your competition just because you don’t support WeChat pay or AliPay for users.
Did you know that around 60% of global mobile payment users are Chinese?
China has been prosperous in the transition to mobile payments is because of the quality internet that is available to locals across the country – all to provide convenience for consumers.
As of September 2019, there are 1.6 billion mobile phones registered in China and the majority of owners have access to mobile payment platforms.
This is why many countries, travel service providers and vendors are quickly realizing how critical mobile wallets are to attracting Chinese tourists.
A 2019 study reported that 90% of Chinese travelers use AliPay, and 66% used WeChat Pay, and these numbers are growing faster than we thought possible initially.
Canadian vendors need to understand that by offering mobile payment facilities, they not only assist their Chinese clientele but also ensures that the customers leave happy with your services every time.
Mobile payments and mobile wallets are embedded in China’s consumer culture where paying cash is considered odd.
Consumers need prompt access to all that they desire. And now they have an added convenience of making payments via phones and gone are the days of carrying cash or credit.
In China, it is quite common for the locals to go days without opening their wallets, and they look forward to having the same convenience while traveling abroad.
Plus, they no longer feel the need to visit local exchanges to convert money – mobile payment providers such as WeChat Pay and AliPay seamlessly handle it all.
Additionally, mobile payments help them avoid credit card fraud, identity theft and other related crimes that are quite common across the world.
The phone and mobile wallet remain password protected and in case the phone gets lost or stolen, the information remains safe inside and can be deleted remotely if the need be.
In June 2019, the combined transaction volume for AliPay and WeChat Pay was 110.4 trillion Yuan.
AliPay has a market share of 54.2%, whereas coming in second WeChat Pay had a share of 39.5%.
Staggering figures, right?
The swift transactions and ease of use are just as favourable to retailers as they are to consumers.
The added benefit is that these services can also be used to pay for mobile top-ups, utility bills, air tickets, etc. all from a smartphone.
This is why when someone from China is visiting Canada, they would want to make payments via WeChat Pay for users and AliPay for users. If you can facilitate them, your business ends up being the winner.
Breathtaking landscapes. A diverse and friendly culture. A rich and engaging history. And a dedication to hospitality that is second to none.
There is no denying the fact that we have a genuinely world-class tourism industry here in Canada – and our businesses are better off thanks to it.
Many small and large business owners here welcome thousands of tourists from China each year. If you operate such a business, why not build a reputation for inclusivity by accepting mobile payments?
If you want to learn more about how to accept WeChat pay, AliPay, and other mobile wallets – let us help you.
SnapPay, a leading North American payment platform, specializes in providing user-friendly cross-border-transaction solutions for merchants and consumers for mobile, online, and in-store transactions.
We have successfully deployed many payment systems that can accept WeChat and AliPay payments. No need to worry about exchange rates and the challenge of handling international transactions – users will pay in Yuan, you will receive in dollars.
Get in touch with us, and we will have you ready to welcome Chinese consumers in no time!