How to Spend Money in China
1. Embrace the Digital Wallets
The first rule in China’s spending game: digital wallets are king. If you're traveling or living in China, one of the first things you need to do is set up WeChat Pay or Alipay, the two most popular digital wallets. They're accepted almost everywhere—from high-end restaurants to street vendors. Alipay is especially useful for foreigners, as it integrates with international bank cards, making transactions seamless.
| Digital Wallets | Primary Use | Accessibility to Foreigners | Notes |
|---|---|---|---|
| WeChat Pay | Everyday payments | High (with Chinese bank account) | Linked to WeChat |
| Alipay | All types of purchases | High (with or without Chinese bank account) | Supports international cards |
In places like the Silk Market in Beijing or the Yuyuan Garden Bazaar in Shanghai, you can haggle for prices, but you’ll still pay digitally. So, download one of these apps before you arrive.
2. The Cash Dilemma: To Use or Not to Use?
While digital payments have largely overtaken cash in urban areas, rural regions and small vendors in China may still prefer cash. Carry some Chinese yuan (CNY), but don't overdo it. You’ll find yourself reaching for your phone far more often than your wallet.
3. Credit and Debit Cards: Limited but Available
Foreign credit cards like Visa and Mastercard are only accepted in certain places, particularly in major cities. However, if you're planning to explore the more remote areas of China, having a UnionPay card or setting up a local bank account might be more practical. UnionPay is accepted almost everywhere in China and in over 160 countries worldwide, making it a great option for those who want broader financial flexibility.
| Payment Method | Urban Usage | Rural Usage | Notes |
|---|---|---|---|
| Cash | Low | High | Essential for smaller towns |
| Credit/Debit Cards | Medium | Low | Limited to major retailers |
| UnionPay | High | High | Widely accepted |
4. Public Transport: Tap and Go
When riding public transport like subways and buses, you can use your digital wallet to pay by simply scanning your phone. For tourists, this is one of the easiest ways to navigate without worrying about exact change. The Shanghai Metro or the Beijing Subway networks are particularly easy to use with WeChat Pay or Alipay integration.
Taxis and Ride-Hailing services, such as Didi, are also well-equipped for mobile payments. Just don’t forget to check if the driver has a preference for a particular app—sometimes, it’s not just WeChat or Alipay but something like Meituan that’s favored.
5. Shopping: Markets, Malls, and Online
While markets are still haggling-friendly and most use mobile payment, malls and online retailers are 100% digitized. Popular e-commerce platforms like Taobao and JD.com not only accept Alipay and WeChat Pay but also provide convenient delivery options all over China. A quick pro tip: if you can, use Taobao’s app in Chinese—it has more features than the English version.
6. Dining Out: From Street Eats to Fine Dining
Whether you're paying for xiaolongbao at a street stall or enjoying a meal at an upscale restaurant, digital payments are widely accepted. Some high-end restaurants may take foreign credit cards, but it’s always good to check beforehand. Street vendors, though often set up with mobile payment, may occasionally still prefer cash, especially in smaller towns.
7. Tipping Culture: Don’t Bother
Tipping is not part of Chinese culture, and attempting to tip might actually confuse or offend the recipient. In most cases, whether you’re paying digitally or in cash, the amount you see is the amount you pay—no extras needed. However, in very high-end restaurants or tourist-focused services, a small gratuity may be accepted.
8. Internet Restrictions: Plan Ahead
Remember, some of the services and apps you may want to use for spending, like Google Pay, PayPal, or even your favorite banking app, may not work in China due to internet restrictions. Make sure you have VPN access set up before arriving, especially if you need to access foreign banking services.
9. Budgeting and Currency Conversion
Finally, keep in mind the currency exchange rate. While digital wallets will convert automatically if you're linked to a foreign account, it's wise to keep an eye on the conversion rates to ensure you're getting a good deal. The Chinese yuan (CNY) is relatively stable, but knowing how much you're spending in your home currency can help avoid surprises when reviewing your statements.
| Currency | Conversion Rate (as of Sept 2023) |
|---|---|
| 1 USD | 7.28 CNY |
| 1 EUR | 7.82 CNY |
Having a budgeting app linked to your accounts can also be helpful for tracking your expenses.
Final Thoughts
Spending money in China has evolved dramatically over the past decade, with digital payments now leading the way. From using WeChat Pay at high-tech kiosks to handling cash in rural areas, navigating the payment landscape in China is both easy and rewarding. Make sure you're prepared by embracing mobile payments, carrying a bit of cash for emergencies, and having access to a UnionPay card if needed.
So next time you're sipping bubble tea at a vibrant Shanghai market or buying souvenirs in Xi'an, you can confidently pull out your phone or wallet, knowing you’re well-prepared for whatever payment method comes your way.
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