Business

Merchants Adapt Mobile Payments Due To Chinese Tourists

One of your best options to celebrate the Chinese New Year is Novotel in Phuket that is spacious, convenient and friendly. There are separate bedrooms for parents and children with the kid’s bedroom equipped with high-class facilities like Play Station. Thailand is one of the popular destinations for Chinese tourists for the Chinese New Year celebrations in February.

Chinese tourists prefer mobile payment options when aboard and merchants have to adapt quickly. From a cash-based society, China has transformed to mobile pay where a QR code in the mobile phone is scanned by street peddlers and high-end department stores. According to Analysys data that was cited in a Hillhouse Capital report, transaction volumes of mobile payments have dramatically increased from $5 trillion in 2016 to almost $16 trillion by the 1st QTR of 2018.

Because mobile payments are deeply ingrained in Chinese daily life, tourist destinations have started to adopt the technology. According to a Nielsen survey, at least three-fourths of supermarkets and convenience stores in popular tourist destinations like Singapore, Thailand and Malaysia are now accepting Chinese mobile payments. Even duty-free stores and luxury stores are accepting the payment method.

The most dominant operators of mobile payments are Alipay run by Alibaba’s affiliate Ant Financial and WeChatPay which is part of Tencent’s messaging app. The increasing and sophisticated demand of Chinese tourists has improved the global coverage of mobile payments.

Merchants in Singapore, Thailand and Malaysia who accept Chinese mobile payments reported a 40% increase in their overall foot traffic. The top three spending categories include shopping, accommodation and dining. Local merchants make the effort to connect to Chinese tourists in order to boost business growth. Even if China’s economy has slowed down, 7 million outbound tourists are still expected for the Chinese New Year which is slightly more than last year’s prediction of 6.5 million.

Preparations are being made at Novotel in Phuket to welcome international tourists who want to experience Chinese celebrations for the New Year. Visitors can enjoy Happy Hour with bar fruit juices, beer, mocktails and cocktails. Another option is romantic dinner with sparkling wine by the poolside.