What are the top 5 alternative payout methods in China?
This week we've turned our focus to China. To close it out, we'll answer one of the most frequently asked questions about this market:
What are the top 5 APMs in China we should focus on in 2024?
1. Mobile Wallets
Alipay and WeChat Pay continue to dominate the Chinese market. Their convenience, security, and widespread acceptance make them a preferred choice for both consumers and businesses. These platforms have evolved beyond mere payment tools, integrating social media, e-commerce, and personal finance management into a seamless experience.
Factor in the unique aspects of UnionPay's offerings (including rapid push-to-card payouts, tap-and-go payments, and ubiquitous global acceptance), and
Despite regulatory challenges, cryptocurrencies are rapidly gaining popularity as an alternative payout method in China. The decentralized nature of cryptocurrencies like Bitcoin and Ethereum offers a level of security and privacy that is appealing to a segment of tech-savvy consumers and businesses looking for innovative solutions.
3. QR Code Payments
QR code payments are not new in any market. They continue to be a preferred method due to their simplicity and efficiency. This method allows for quick and contactless transactions, which are highly valued for their speed, security and ubiquity. An increasing number of businesses (both small and large) continue to find QR codes easy to implement, offering a hassle-free solution to customers for payouts and payments.
4. E-Invoicing Platforms
For B2B transactions, e-invoicing platforms are becoming increasingly popular. These platforms facilitate efficient and transparent transactions. Delivering increased flexibility and transparency, businesses are dramatically improving their cash flow management operations. The automation of invoicing processes reduces errors and increases the speed of payments which leads to improved business partner satisfaction.
5. Bank Transfers via Fintech Apps
Bank transfers have (and always will be) a predominant method of issuing and receiving payouts. On the edges of this core capability, a new generation of fintech apps are revolutionizing the traditional bank transfer process. Apps that offer frictionless cross-border services that comply with China's stringent regulations are particularly in demand as they provide both individuals and businesses with cost-effective and efficient ways to manage international payouts.
These alternative payout methods, and many more, will help redefine the financial landscape in China in 2024 and beyond. Businesses looking to succeed in this market must support these platforms as well as rapidly adapt to their evolution to deliver flexible, secure, and efficient payout solutions for their payees and business partners.
Embracing these methods will not only enhance payee and business partner satisfaction, it also streamlines business processes, reducing costs and errors, and paves the way for greater growth and profitability.