Cashless payments have become mainstream in China, but cash is still valuable and the government supports cash payments, says financial expert Sara Hsu, an associate professor at the University of Tennessee, specializing in supply chain management in the Guardian. A “[recent] directive pushes China’s policy of inclusive finance further to ensure that both elderly Chinese and foreigners can participate in economic transactions,” says Hsu.
The Guardian:
For most people it’s simple enough, but using them usually requires a Chinese bank account, or providing extensive identification to connect to a foreign account – if the foreign bank allows it.
The hegemony of this system can also make life difficult for China’s citizens who don’t have the level of technological literacy required for the modern world.
“China is one of the top countries for using cashless payment systems, but penetration is not 100%,” says Sara Hsu, an associate professor at the University of Tennessee, specialising in supply chain management.
“Elderly Chinese still often prefer to pay with cash and some struggle with using mobile payments.”…
Then, last week, the PBOC together with several ministries issued a joint notice requiring local commerce authorities to ensure retailers and hospitality venues in key business and tourist districts were fully equipped to take foreign payments, and that retailers linked to people’s daily lives – including markets, breakfast shops and pharmacies – could take cash.
“The situation has improved to some extent, but this [recent] directive pushes China’s policy of inclusive finance further to ensure that both elderly Chinese and foreigners can participate in economic transactions,” says Hsu.
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