Chinese tourists are increasingly travelling the world, but they are leaving their cash in the bank. Instead they are paying with their cell phones, helping to drive the adoption of digital payment worldwide.
A new study by research firm Nielsen found that 65% of Chinese tourists sampled have used mobile payment while traveling overseas, compared with only 11% of non-Chinese tourists. Over 90% of Chinese tourists would use mobile payment overseas given the option, according to the study.
What’s more, 91% said that if overseas merchants supported the use Chinese mobile payment brands, it would further increase their desire to shop.
The findings are significant for the travel sector worldwide as China is now a driving force in tourism. According to statistics from the China National Tourism Administration, Chinese tourists traveled overseas 131 million times in 2017, an increase of 7% from the previous year.
Nathan Blecharczyk, Airbnbn’s co-founder predicted that Chinese tourism will be Airbnb Inc.’s largest source of business by 2020.
They also spend more than other tourists. Statistics from the International Tourism Association show that overseas spending by Chinese tourists last year was as high as US$261.1 billion, more than any other tourist group. Chinese tourists spent an average of US$762 per person on shopping, far exceeding the US$486 spent by non-Chinese tourists.
According to the Nielson survey, Chinese tourists cited “convenience and speed, and familiarity” (64%) as the primary reason for using mobile payment while abroad. Among other reasons, respondents chose “feeling proud of Chinese mobile payment brands” (48%), “favorable exchange rate” (43%) and “discounts or promotions” (36%).
Nielsen’s study also found that Chinese tourists spend money differently than non-Chinese tourists. According to the study, the top three categories of Chinese tourists’ overseas spending are shopping (25%), accommodations (19%) and dining (16%). For Non-Chinese tourists, however, the top three categories are accommodations (29%), dining (18%), shopping (15%). Duty-free shops ranked as the most popular shopping outlet for Chinese tourists with 62%, followed by department stores (47%) and supermarkets (47%).
Digital payments is far more popular in China than in most other nations, largely driven by use of Tencent’s WePay and Alibaba’s Alipay mobile payment platforms. According to a 2017 report, 74% of Chinese people stated that they can live for more than a month with only 100 RMB in cash, while 84% people reported that they could accept a totally cashless life.
Source: China Money Network
