China came into its digital era with a very limited credit & debit card infrastructure. Due to this, it step straight from cash into digital payments. Electronic and digital payment methods have become the payment method of choice for Chinese consumers, whether they are purchasing online or offline.
Chinese consumers are also preferring to the mobile versions of online & e-payment technology. The use of mobile payment apps is now becoming even more prevalent than using PC based online payment platforms, even when consumers are browsing with their PC.
Why is this?
When survey, mobile payment users said that there were their most important reasons for paying via a mobile app:
- Convenience – 87%
- Lots of usage scenarios – 52.6%
- Safety & security – 47.9%
- Favourable subsidies – 42.6%
China Users TGI Payment Method Preferences When Purchasing Different Products
Differences in Payment Preference Between Gender
Payment Preferences for eCommerce
Whether it’s done though an online or mobile payment platform, most of people pay using a digital payments platform. The majority of people reported using these at least 5 times each month. The typical value of a transaction was between 500-1000 RMB.
Scanning QR Codes for Digital Payment
The most common way to pay for O2O purchases is to scan a QR code, which allows the user to pay directly in to the account of another user or company. Users can also offer their own cards to a store clerk to scan and debit as needed.
As you can see, there is a clear relationship between average transaction value and the amount of transactions completed per day. The more a person spends per transaction, the more transactions they are likely to complte per day. These people are likely to be high-income and very comfortable with using mobile payments, making the more willing and able to complete large purchases using QR technology.