China streamlines cross-border transactions with unified QR code trial

Making payments in China will soon become easier for foreigners.

ICYDK: In July, the central bank (PBoC) launched a pilot program to bring domestic QR code payment platforms under a common technical framework known as the “unified gateway.”

• The goal was to simplify how foreign payment apps can connect to various Chinese QR code networks – making payments hassle-free for foreign visitors.

According to Caixin, participants initially included only Ant Group’s Alipay and Ant International, but now they include more payment platforms such as Tencent’s WeChat Pay and Tenpay Global.

• Several foreign platforms, including those from Singapore, Malaysia, and Thailand, have also joined the gateway.

Why it matters: China’s leading digital payment platforms – WeChat and Alipay – have maintained separate technical, security, and settlement protocols, rendering their QR code systems incompatible.

• That creates hurdles for domestic consumers, and also adds redundant engineering and compliance burdens for foreign payment apps.

Get smart: The pilot is part of Beijing’s broader efforts to attract foreign tourists and  spending.

• It also helps remove a technical hurdle to China’s push for cross-border payment connectivity – a key plank of RMB internationalization.