China’s e-CNY digital currency is revolutionizing the way transactions are conducted in the country.
China has upgraded its digital renminbi payment services to enhance the global appeal of its digital currency and enhance the convenience for foreign users. With mobile payments reigning supreme in China, these improvements are set to provide a more seamless experience for international visitors, and additional measures are anticipated to boost the adoption of this digital fiat currency.
The recently introduced “recharge before use” functionality in the e-CNY app enables international users to add funds to the app’s wallet via global payment networks like Visa and Mastercard. Alternatively, foreigners can visit bank service centers to deposit cash into their digital RMB wallet. Any remaining balance in the digital wallet can be refunded to the foreign bank card or account used for the initial top-up.
Before, foreigners in China were unable to pre-fund their e-CNY wallets and had to top them up at the time of making payments. The new feature enables international users to employ convenient online payment methods like “quick pay,” similar to domestic users. This not only streamlines the payment process but also simplifies operations, boosts payment efficiency, reduces waiting times related to foreign card verification, and enhances the overall payment experience.
Following the enhancement, international users can utilize their e-CNY wallets at physical stores participating in trial programs for digital currency acceptance, as well as on online platforms like Didi for ride-hailing, Meituan for takeaway services, Ctrip for travel bookings, and JD for e-commerce transactions.
According to Dong Ximiao, chief researcher at Merchants Union Consumer Finance, mobile payment services are not as commonly used in many foreign countries and regions as they are in China. The recent upgrade in e-CNY payment services is expected to not only offer greater convenience to foreigners within China but also serve as a testing ground for the e-CNY platform, promoting the digital currency on an international scale.
Zhou Maohua, an analyst at China Everbright Bank, believes that this upgrade will benefit foreign users and expand the usage of e-CNY in cross-border transactions, ultimately contributing to the broader adoption of digital RMB and the internationalization of the currency. China’s efforts in developing the digital RMB have been ongoing since 2014, with significant progress seen as of May 31, when approximately 264 million e-CNY transactions, totaling 83 billion yuan ($11.4 billion), were recorded in trial regions, as reported by the People’s Bank of China.
Additionally, Chinese financial technology company Ant Group has introduced seven new digital wallets and payment apps from Asia to the Chinese mainland, bringing the total number of accepted overseas digital wallets on the mainland to 10. This move allows users of overseas digital wallets to seamlessly use their domestic mobile e-wallets across Alipay’s extensive merchant network in mainland China, enhancing cross-border payment options and accessibility for international consumers.
(Source: Liu Zhihua | Zhou Lanxu | China Daily | The Straits Times)
