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A Comprehensive Guide to Setting Up and Using Alipay in China for Foreigners

A Comprehensive Guide to Setting Up and Using Alipay in China for Foreigners

China has rapidly transitioned to a largely cashless and cardless society, with mobile payments becoming the mainstream payment tool. Over 90% of transactions in China are digital, making it essential for travelers to understand the dominant mobile payment platforms: Alipay and WeChat Pay. This rapid digitization has even created a "reverse digital divide," where China is so digitalized that it can be "out of touch" internationally, as many other countries still primarily use bank cards.

The Chinese central authorities have recognized the payment difficulties faced by international arrivals and have established a coordination mechanism to solve this issue. They are optimizing various procedures, including payment services, to ensure foreign tourists enjoy the same level of convenience as domestic tourists in accommodation, transportation, and shopping.

Main Mobile Payment Platform for Foreigners

Alipay Alipay, developed by Ant Financial (an affiliate of Alibaba Group), is a leading mobile payment solution with over a billion active users. It allows users to make online and offline payments, transfer money, pay bills, and book tickets.

Alipay

Setup and Registration for Foreigners

  • Download the App: You can download the official Alipay app from Google Play Store, Apple App Store, or the Alipay website. It is recommended to install and set up the app before arriving in China to ensure readiness upon landing.

  • Choose Language: Alipay has introduced English and other language options for international users. The app automatically switches to the international version with English as the default if installed outside China.

  • Sign Up with Phone Number: Register using your international mobile number. A verification code will be sent to this number for confirmation, and you'll set a login password. Some users have reported needing a Chinese phone number to set up an account, while others managed with foreign numbers.

  • Identity Verification: Due to Chinese financial regulations, identity verification is required. You'll typically need to submit a scan of your passport and potentially additional information like a visa or residence permit. Verification might take a few days, but often completes much quicker, sometimes within an hour or up to 24 hours.

    • Important: As of March 2024, you can spend up to $2,000 USD per year without ID verification. For transactions over $500 USD, ID verification (e.g., passport) is required. Once verified, your annual transaction limit increases to $50,000 USD, with a single transaction limit of $5,000 USD. If verification fails, ensure your passport photo is clear, well-lit, and captures all required information.

Alipay step-by-step

Linking Bank Cards and Funding

  • Directly Linking an International Bank Card (Recommended for ease): Recent updates allow nearly all mainstream foreign credit cards (Visa, Mastercard, Diners Club, Discover, JCB, and UnionPay) to be linked directly. You'll go to the "Me" section, find "Bank Cards," enter details, and verify the card with a small refundable charge.

    • When linking, be very accurate with card info, including middle name (if applicable) and country area code for phone numbers.

    • Payments made this way are charged directly to your linked card and require a 6-digit payment password for each transaction.

    • Some cards may not work, so trying another card is an option.

  • Prepaid Alipay Account via TourCard (Optional): This mini-app creates a temporary virtual local bank account valid for 180 days. It supports VISA, Mastercard, Diners Club International, and JCB.

    • The TourCard has a maximum top-up limit of 10,000 CNY (approximately $1,400 USD) for the entire 180-day period, with a 5% service charge per top-up. If funds are depleted, you'd need to wait for the 180 days to conclude to open a new TourCard account, but you can always link your card directly in the meantime.

    • To activate, search "TourCard" in the Alipay app and follow the instructions, which will also require ID/passport verification.

  • Topping Up (If linking a Chinese bank account or via a friend): If you have a Chinese bank account, you can transfer money directly. Alternatively, a common method is to have a friend transfer funds to your Alipay account, which you can then repay. You cannot directly top up your Alipay balance using a foreign credit card without using the direct linking method or TourCard.

Making Payments with Alipay

  • QR Code Payment: This is the primary method.

    • Scanning Merchant's QR: Open the "Scan" function, scan the merchant's QR code (often displayed on walls or counters), enter the amount (or it may be pre-filled), and confirm payment.

    • Merchant Scans Your QR: Open the "Pay/Receive" function to display your personal QR code, which the merchant scans to charge you. You typically confirm the amount and enter your PIN.

  • Online Shopping: Alipay is integrated into checkout processes on platforms like Taobao or Tmall. Select Alipay and confirm the transaction. For desktop shopping, a QR code is often displayed for scanning with your Alipay app.

  • Paying Bills: Alipay allows paying utility bills, mobile top-ups, and even traffic fines.

  • Transportation: Alipay is widely accepted for taxis and public transport in many Chinese cities, including metro and bus rides in Shanghai and Beijing. For taxis, drivers often present a QR code for payment. For public transport, you can activate a transportation QR card within the app by selecting your city and providing identity details.

  • Other Functions: Alipay is an "App that serves for everything". It can be used for renting bikes (e.g., Hello Ride), ordering Didi (taxi service), renting Power Banks, paying for washing machines, and vending machines. It also has an intuitive translator and real-time currency exchange.

Limitations for Foreigners with Alipay

  • Peer-to-Peer Transactions: Foreign users cannot send or receive money from individuals; it's strictly for purchases from businesses.

  • Cash Withdrawal: Alipay is not designed for direct cash withdrawals from foreign bank accounts.

  • International Purchases: Primarily for domestic payments within China, though it's expanding internationally.

  • Top-up Restrictions: You generally cannot directly top up your Alipay balance using a foreign credit card, but you can link your card directly for payments or use TourCard.

  • Offline Use: Alipay requires internet connectivity to function properly.

  • Personal Payment Codes: Some personal QR codes (used by individual vendors) may not support foreign credit cards, only Alipay balance or local Chinese credit cards. In such cases, ask the merchant for other payment codes.

  • Fees: While Alipay generally doesn't charge additional fees for using a foreign credit card, your card issuer may apply foreign transaction fees. The Tour Pass has a 5% service charge for top-ups.

General Payment Challenges and Solutions for Foreigners

  • "Reverse Digital Divide": China's rapid mobile payment development has made it challenging for foreigners accustomed to bank cards. Many domestic merchants are unwilling to pay high cross-border credit card transaction fees (2.5% to 3.5% for foreign cards vs. ~0.6% for domestic cards and 0.38% for Alipay).

  • Cash Acceptance: While some merchants may accept cash for the exact amount, fewer and fewer handle cash, and many may not have change, politely declining cash payments.

  • International Card Acceptance: Foreigners have encountered obstacles using international cards, as many stores lack POS devices or card readers for international payment networks like Visa, Mastercard, and Apple Pay. Shanghai has been leading efforts, installing over 36,000 POS machines that accept foreign bank cards in key locations since late 2023.

  • Hailing Taxis: Payment difficulties are particularly prominent in taxis, as most Chinese taxi drivers use car-hailing apps and QR codes for payment, handling less cash or POS devices.

  • Privacy Concerns: Some overseas users may be unwilling to provide real-name personal information due to privacy concerns.

  • Recommendation: To navigate China effectively, it's recommended to download both Alipay and WeChat Pay apps and prepare both payment methods if your budget allows, as they complement each other and cover different scenarios.

China's Efforts to Facilitate Foreigners' Stay

China's central authorities are actively addressing payment difficulties and streamlining procedures for inbound tourism, from visa applications to hotel check-ins and shopping. Measures include:

  • System Upgrades: Alipay and WeChat Pay comprehensively upgraded their systems in July 2023 to better support international bank cards.

  • Policy Initiatives: The State Council and People's Bank of China have issued "Opinions on Further Optimizing Payment Services to Facilitate Payments," emphasizing the needs of the elderly and foreigners.

  • Enhanced Services at Entry Points: At major airports like Beijing Capital International Airport (PEK) and Daxing International Airport, service centers are available to help with Alipay/WeChat installation or provide RMB cash withdrawals from ATMs.

  • Increased Card Acceptance: Cities like Shanghai have taken the lead in installing POS machines that accept foreign bank cards in commercial, cultural, and tourism sites, airports, and railway stations. The coverage rate of key merchants accepting foreign cards in Shanghai and Zhejiang Province has exceeded 90%.

  • Visa Policies: China has implemented various measures to expand international exchanges, including new visa-free policies for citizens from several countries and simplified visa procedures. This includes shortening visa application forms, lowering visa fees, exempting some applicants from fingerprinting, and providing walk-in visa application services.

These efforts demonstrate China's determination to continue opening up and welcome tourists from all over the world. In 2023, inbound travelers recovered to 62.9% of 2019 levels, with a significant increase in mobile payment transactions by inbound travelers in Q4 2023, totaling 35 million transactions amounting to 5 billion yuan ($695.6 million).

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