An increase in flights between China and New Zealand and a thirst for more immersive and unique travel experiences has made New Zealand a hot destination for Chinese tourists in the post-COVID world.
Chinese travellers made up the second highest audience for New Zealand international tourism with over 200,000 visitors in the past 12 months (Xinhuanet, 2024), up considerably from 17,000 in 2022 (Stats NZ, 2024).
New Zealand is also a popular choice for international students. In 2023, New Zealand hosted over 69,000 international students, with 35% of these from China (ICEF Monitor, 2024).
We’ve found that many businesses outside of China are unaware of the difficulties that Chinese tourists, students and migrants face when trying to access Chinese funds for payments in other countries.
In this article we’ll discuss the difficulties Chinese visitors face when trying to spend money in New Zealand, outline the solutions available and how your business can provide a greater experience for these consumers.
Payment difficulties faced by Chinese visitors in New Zealand
For Chinese tourists, students and migrants who wish to spend funds in New Zealand, there are significant hurdles to overcome:
- Not all businesses accept online payments from Chinese debit cards. Most websites are built to take payments from Visa, Mastercard and American Express card schemes, however most Chinese cards are from UnionPay (Datos Insights, 2023). This can cause difficulties when trying to pay for university student accommodation or booking a holiday.
- There are restrictions in sending funds outside of mainland China. Chinese residents have an annual limit of $50,000 USD, however using an electronic wallet such as Alipay can bypass this legally. This can cause limitations for student tuition and accommodation, rent, car payments, holidays or total costs for long-term migration to New Zealand.
- Also, international payments in China can’t be made online or in a bank app, they must be conducted at a bank branch. The payer must provide proof of identification and give reason why they’re sending funds overseas. This can cause difficulties when the payer has already relocated to New Zealand or requires funds non essential funds.
New Zealand businesses that wish to do businesses with Chinese tourists and international students need to offer payment solutions which overcome these difficulties.
The solution: Asian wallets
Asian wallets such as Alipay and WeChat Pay are the solution to these international payment difficulties. Fortunately they’re also two of the most commonly used payment methods in China, they’re familiar and Chinese consumers will be looking out for them. New Zealand merchants who offer these wallets are able to gain an advantage over their competitors in attracting and generating loyalty from Chinese customers.
Here is a quick summary of two Asian wallet giants, Alipay and WeChat Pay:
Alipay
Alipay is a mobile payment app and digital wallet where users can store their debit and credit card details.
Users are able to pay for in-store purchases, online shopping, utility bills and transportation using Alipay without using their credit or debit card. Launched in China in 2004, it has become China’s leading third party payment solution, with over 1.2 billion users globally.
Alipay acts as one place to securely store valuable identification and financial information including your driver’s license, insurance card, ecommerce contact and shipping details, hotel reservation and airline ticket to name a few.
Alipay is also a helpful financial tool, offering micro-loans, credit scoring, insurance and investment products such as assets, stocks and funds.
WeChat Pay
WeChat Pay is a digital wallet and payment method that is offered as part of the Chinese WeChat app. Users can store their credit or debit card details in the digital wallet and use this wallet to make in-store and online payments without presenting their card or manually entering card details.
WeChat Pay was launched in China in 2013, three years after WeChat launched as an instant messaging service. While WeChat Pay is newer than similar Asian wallets like Alipay, it’s a safe and fully fledged payment network.
The payment process starts when the payer scans a WeChat Pay QR code from the WeChat Pay app. The customer initiates the payment and completes verification such as a pin or facial recognition transaction. Payment details are encrypted for privacy and security purposes, then sent from the merchant’s point-of-sale system to WeChat Pay.
This payment functionality creates a familiar, trusted and seamless payment experience, given that users are already active in WeChat daily for other activities such as social media and messaging.
How do Asian wallet payments work?
Asian wallets offer New Zealand businesses and educational institutions a way to easily enable payments from Chinese consumers. This can enable your business to stand out from competitors, and yield an increase in revenue, loyalty and satisfaction.
There are enormous opportunities from small retail and hospitality venues, to large vendors in the tourism and education industries.
Asian wallet in-store payments
Retail businesses can accept Alipay and WeChat Pay in-store payments via a QR code. After passing approval, your business is provided with QR codes for customers to scan, enter the payment amount and complete the transaction. For Chinese customers, it’s the same process they would use in China.
For businesses it’s a simple and low cost payment method to setup. You’ll also gain access to an online platform where you can view and reconcile payments.
The following businesses face excellent opportunities:
- Restaurants, cafes and hospitality venues frequented by Chinese such as university suburbs, tourist destinations, ‘Chinatowns’ and airports.
- Convenience stores, particularly in city central business districts, tourist areas and near universities.
- Pharmacies and healthcare providers.
- Public transport.
- Tourist attractions.
- Wineries.
Asian wallet online payments
If your business is online, you can add Alipay and/or WeChat Pay as a payment method with the inclusion of a payment gateway on their website or app.
The customer selects their preferred Asian wallet, initiates the payment and completes verification such as a pin or facial recognition transaction. Payment details are encrypted then sent to Alipay or WeChat Pay. Merchant’s are provided with a portal where they can view the number and value of these transactions.
Businesses that provide essential services for international students can use Asian wallets to remove hurdles in receiving payment for the following:
- Higher education and school tuition
- Rent
- Utilities
- Phone bills
- Public transport or purchase of a vehicle
For tourism, accepting wallets online enables you to receive bookings from Chinese tourists before they have left home, taking payments for items such as:
- Airfares
- Accommodation
- Tours and unique experiences
To offer these payment options on your website or app, once your business has been approved you’ll be provided with an API code which is added to your website to offer Alipay and/or WeChat as a payment option.
How your business can accept Asian wallets
Does your business receive Chinese customers? Would you like to help your Chinese customers by providing a more inclusive payment option? Would you like to stand out from the crowd and attract more Chinese tourists or international student customers?
At Novatti we work with businesses in New Zealand to enable simple and seamless payment methods for Chinese customers using Asian wallets such as Alipay and WeChat Pay.
We’ve been listed on the Australian Stock Exchange since 2016, have an Australian Financial Services (AFS) licence and the stringent monitoring of legal, compliance and risk.
Complete the form below to arrange a friendly chat with our Asian wallets specialists.
Sources
Xinhua. (2024, June 7). China was New Zealand’s Second-Largest Visitor Market. Retrieved from https://english.news.cn/20240607/a208bb5547114aa7ad5d0fb3b233bcbe/c.html Accessed on 12 August 2024.
ICEF Monitor. (2024, July). New Zealand Hosted Over 69,000 International Students in 2023. Retrieved from https://monitor.icef.com/2024/07/new-zealand-hosted-over-69000-international-students-in-2023. Accessed on 9 August 2024.
Stats NZ. (2024, January 31). International Travel: December 2023. Retrieved from https://www.stats.govt.nz/information-releases/international-travel-december-2023/#annual.
Datos Insights. (2023). Mastercard and Visa gain global share amidst China’s spending slowdown. Retrieved from https://datos-insights.com/press-release/mastercard-and-visa-gain-global-share-amidst-chinas-spending-slowdown/. Accessed on 9 August 2024.
