One-Third of Chinese Tourist Payments Made Through Mobile

The mobile payment’s penetration of the Chinese tourist market continues to grow with 3.4 times out of 10 transactions made through the channel in 2019.

Whilst the user base remained stable, usage increased compared to 2018 when 3.2 out of 10 transactions were made through a mobile payment platform, according to a report jointly released by Nielsen and Alipay. This was in spite of the fact that Chinese tourist was increasingly shifting travel destinations from popular East Asian countries in favor of more distant locations where cash is more prominent.

«In contrast to Asian tourism markets where Chinese mobile payment solutions were adopted earlier, some European countries are witnessing an acceleration of the acceptance of Chinese mobile payment solutions,» the report explained.

In the U.K. and France, for example, the percentage of Chinese tourists who used mobile payments increased to 65 percent in 2019 while per capita mobile-based spending rose about 10 percent.

Despite only being ranked as the sixth most popular travel destination for the Chinese in 2019 (9 percent), Singapore was a leader in mobile payments (77 percent).

Unsurprisingly, the city-state is reaping the rewards from its early and collective efforts including the government’s decision to name e-payments as a national priority in its 10-year plan for a «Smart Nation». And 66 percent of the surveyed merchants in Singapore hopes to run more digital retail operations and improve marketing through mobile payments platforms, the report added.

Rounding out the remaining top five Chinese tourist mobile payment leaders are South Korea, Japan, Australia and Thailand.