China’s payment vow ‘positive step’ for visitors, foreign investment, but economy and security concerns remain
- State Council vows to further support policies to optimise payment methods and pledges wider support for currency exchange services
- But the move is seen as efforts by Beijing to offer ‘easy but marginal wins to foreign business in lieu of addressing their main concerns’
China’s vow to offer greater acceptance of cash and overseas bank cards represents a “positive step” to attract visitors and investments, but more is still needed to address economy and security concerns, analysts and business associations said.
The State Council on Thursday promised to improve policy support to optimise payment methods, which has been a hurdle for foreigners in a market dominated by domestic players.
It also pledged wider support for currency exchange services for the elderly and global travellers in a bid to create a more user-friendly payment market.
“The work to reform the hardware and software needed to support foreign bank card payments should speed up, and the possibility of developing touchless payment methods should be explored,” the State Council document said following a policy briefing on optimising payment methods last week.
“Bank card clearing institutions would be urged to be in line with international payment platforms.”
The document also vowed to impose greater punishments on shops that reject cash and also offer more foreign currency exchange and cash services to ensure “a seamless connection” between local and foreign payment markets.
