Singapore is ranked global leader in mobile payment usage among Chinese tourists, fueled by the country’s maturity in mobile payment solutions, according to a joint report by Nielsen and Alipay. The availability of mobile payment is among the top three factors affecting Chinese tourists’ overseas shopping habits.
The Southeast Asia region maintains its leadership in mobile payment usage among Chinese tourists, with Singapore and Thailand positioned at #1 and #6 in the global ranking, reflecting the region’s maturity in mobile payment solutions. Other countries on the list of «Top 10 countries where Chinese tourists love to use mobile payments» include South Korea, Japan, Australia, France, New Zealand, Canada, the UK, and the U.S.
In Singapore, an early adopter of Chinese mobile payment solutions, almost all merchants (97 percent) indicated steady improvement compared to the previous year in terms of mobile payment usage and the amount of mobile spending by Chinese tourists. «Chinese mobile payment engagement level and the depth of usage among Chines tourists continued to increase…as such, overseas merchants are showing a more open attitude towards the application of Chinese mobile payment platforms and digital operations,” said Justin Sargent, President of Nielsen China in a media statement.
These results are encouraging more overseas merchants to deepen the use of Chinese mobile payment platforms as they go digital. Nearly seven out of ten (66 percent) surveyed merchants in Singapore, South Korea, and the U.K. hope to carry out more digital store operations through Chinese mobile payment platforms and hope to further their promotional and marketing activities leveraging Chinese mobile payment platforms.
«The trend of more overseas merchants going beyond payment to adopt more digitalized services is a promising one, as it helps brick-and-mortar businesses become better integrated with the digital economy while bringing more personalized experiences for consumers around the world,» said Angel Zhao, President of Ant Financial’s International Business Group. Slightly under two-thirds of merchants surveyed in Singapore, South Korea and the U.K. (63 percent) said that they are likely to recommend Chinese mobile payment systems to their industry peers.
Surveying 4,837 Chinese travelers and 547 overseas merchants, the report provides a new look at the digitalization trend of the overseas retail sector at a time when online and offline businesses are increasingly merging and Chinese tourists are poised to have even more influence as they travel abroad.
Destination related insights
- Among all the countries surveyed, the usage of Chinese mobile payments in Singapore, South Korea, and Japan was highest, with Singapore in the leadership position.
- 77% of Chinese tourists in Singapore use mobile payments for their transactions.
- Total spending via mobile payment of Chinese tourists increased significantly in countries where Chinese mobile payment adoption is relatively mature.
- In Singapore, Malaysia, Thailand, Japan, and South Korea, the usage rate of mobile payment among Chinese tourists was high, reaching 70% in both 2018 and 2019.
- Correspondingly, the total amount spent by Chinese tourists increased by 14% in Singapore and Thailand and 23% in Japan and South Korea between 2018 and 2019.
Merchant related insights
- More overseas merchants intend to deepen the use of Chinese mobile payment platforms as they go digital.
- 66% of surveyed merchants in Singapore, South Korea, and the UK hope to carry out more digital store operations through Chinese mobile payment
- 66% hope to further their store’s promotional and marketing activities leveraging Chinese mobile payment platforms.
- 97% of surveyed merchants in Singapore indicated steady improvement compared to the previous year in terms of mobile payment usage and the amount of mobile spending by Chinese customers.
- 63% of surveyed merchants in Singapore, South Korea, and the U.K. said that they are likely to recommend Chinese mobile payment systems to their industry peers.
Tourism-related insights
- In 2019, destinations located a four-hour flight away such as Japan, South Korea, Thailand, and Singapore, remained the most popular choices for Chinese tourists.
- In addition, the U.S., Australia, U.K., and Canada were also among the top 10 countries, which indicated that Chinese tourists were fairly keen on traveling to English-speaking countries.
- Thailand and Singapore were among the Top 10 overseas destinations visited by Chinese tourists in 2019 and the Top 10 Countries for Overseas Travel Plans in 2020.
- In 2019, compared with last year, Chinese tourists born in the 1990s spent nearly 12% more on a single overseas trip while those born in the 1980s spent 15% more. An underlying reason for the increased travel expenses may be the desire for a more in-depth experience of local cultures.
- Top three factors affecting Chinese tourists’ overseas shopping habits are:
- Payment methods accepted by the merchant (37%);
- Product variety and quality (36%); and
- Product price (36%)