Digital payment in China: one billion people already pay with their mobile phone in the country

Is it the end of cards? Today, digital payment in China is already more popular than the cash transaction itself. Although it has really taken off in recent years, this is not a recent invention.

Throughout this article you will learn about the history of this payment method, its advantages, characteristics and how the country is benefiting from this new consumption habit. Check below what we have prepared and find out everything about the topic!

How does digital payment work in China?

Digital payment in China is made through mobile devices. In just three years virtually the entire country has moved from paper money to mobile apps, moving trillions of dollars.

But don't think that this is only true for large urban centres and department stores. Restaurants, pharmacies, small shops and even among street performers, digital payments dominate.

The companies with the largest market share are WeChat and Alipay, representing 90% of the entire market. Both work by means of payment via QR Code, a two-dimensional barcode. To make the payment, just set the amount with the merchant or seller and generate the code in the application.

Then, the seller uses a code reader so that the amount is charged and debited from the account at the same time. It is fast, easy and safe. Even the small villages in the interior of the country have adopted the method, and the whole of China can now be considered connected.

Why is digital payment a success?

The exponential growth of digital payment in China is largely due to the consumption habits of the population. Traditionally, the population does not usually bet on credit cards, since they do not like to owe money to any institution.

Digital models bring confidence and there is also the issue of security. You no longer have to carry paper money around and run the chance of losing it, and you don't need to have local currency, helping with international travel.

China should be seen as a model market, a mirror for how the rest of the world can work digital payments in a positive way. Today, the challenge for the rest of the countries is due to the portion of the population without access to the necessary technology and the cultural obstacles of each nationality.

However, with the right incentives and a well-studied local penetration plan, issues like this can be circumvented and, in the medium term, digital payment can become a reality.

Digital payment in Brazil

Digital payment in China has already replaced the other two most popular payment methods (cards and cash) in a broad aspect in people's lives, but how can this happen in our country?

Fintechs will dominate the market, and that is a fact. Today, digital wallets are already spreading in Brazil, as are several other similar and complementary services.

Alymente is an excellent example of using this technology to meet a market need. The flex benefits platform offers companies the ability to bring together in one place all the value offered in terms of benefits for their employees. Incredible, isn't it?

This means that, instead of handling several benefit cards (meal, food, mobility, culture, among others), the total balance is inserted in an app that, through digital payment systems, allows the employee to choose where he or she wants to use that amount.

It is solutions like this that allow systems like QR Code payment to become part of Brazilians' lives and help spread the concept.
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