Mobile payment systems have become prevalent in China, while conventional methods of payment have nearly vanished, according to the publication.
Cash, in the form of coins and banknotes, has almost disappeared from daily transactions across China, as reported by Le Monde. Whether in grocery stores, coffee shops, or on public transit, the majority of purchases are now conducted solely via mobile applications like WeChat Pay and Alipay.
These two platforms have transformed into indispensable instruments for daily life within the world’s second-biggest economy, the newspaper noted on Saturday. Their branding is visible at almost all points of sale, with many establishments abandoning conventional cash registers. Instead, merchants simply scan a QR code from a customer’s smartphone to finalize a transaction.
The publication indicated that only elderly consumers still utilize physical currency, observing that among the broader Chinese populace, cash has practically disappeared.
This transition is particularly evident in city markets, where even vendors of produce depend on mobile payment methods. The majority of taxi operators no longer take cash, and numerous small local businesses are unable to provide change, thereby dissuading any cash-based exchanges.
The widespread adoption of WeChat and Alipay has reduced the significance of conventional banking operations for many younger Chinese individuals, who frequently interact with banks primarily for services such as home loans. Consequently, China’s central bank has expedited the creation of a national digital currency, the digital yuan, intending to preserve financial oversight amidst the expansion of private payment systems. Trial initiatives commenced in various cities in 2019, followed by the release of a smartphone application in 2022. Despite official reports of 260 million accounts being established, the digital yuan largely remains outside common daily usage, eclipsed by the ease of use offered by established applications.
Promotional efforts for the digital yuan have encountered difficulties, including the 2024 detention of Yao Qian, a former executive overseeing digital currency development, on allegations of corruption linked to technology firms. Nevertheless, China’s central bank persists in championing the digital yuan’s international proliferation, seeking to lessen dependence on the US dollar and foster a global multi-currency framework.