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That just sounds like banks are worried about getting disrupted by mobile payments. Even beggars in Shenzhen accept Wechat payments these days so I am not buyi

That just sounds like banks are worried about getting disrupted by mobile payments. Even beggars in Shenzhen accept Wechat payments these days so I am not buying the "think of the poor" angle. ATMs and banks lost a lot of their utility since the rise of mobile payments.

07d046 8y ago
The article mentions this: > In many cities, cashlessness is so common that panhandlers and street musicians use WeChat and Alipay QR codes to ask for change. But these anecdotal cases obscure some of the class-related issues that cashlessness can’t fix, and may worsen. The 2017 World Bank Global Findex database, which measures financial inclusion, estimated that some 200 million Chinese rural citizens remain unbanked, or outside of the formal financial system. Cashless payment systems by design require formal enrollment in banks, which are then tied to the mobile payment platforms that WeChat and Alibaba host.
- icebraining 8y ago
  Cashless payment systems by design require formal enrollment in banks I think this is the dubious claim. According to comments in this very thread and on other sites, you don't.
TorKlingberg 8y ago
As the article states, you need a Chinese bank account to use any of the new mobile payment methods.
- jpatokal 8y ago
  It's a bit more complicated than that: you can link WeChat to some credit cards, or get money transferred to your account. However, it's difficult to impossible to do this outside China and/or without a Chinese mobile number. Here in Australia, WeChat/Alipay are starting to proliferate in Chinese shops & restaurants, but it's impossible to join either locally. No shop that I know of will reject cash, but "cash or WeChat/Alipay only" is fairly common.
- olalonde 8y ago
  That's not totally accurate though. I've been using Wechat pay for months without ever linking a bank account. I can't withdraw my Wechat money to a bank account but I can spend it. I think that's precisely what banks are worried about: when more and more people decide they do not really need to link a bank account.
ElBarto 8y ago
Those new operators are now effectively banks and should be regulated as such.
EZ-E 8y ago
> I am not buying the "think of the poor" angle Me neither, opening a bank account takes one hour, costs less than one dollar, you get the bank card the same day, and there are no monthly fees (for debit card). The only case where it could be difficult is for people without ID (ie second child that were hidden back when the one-child policy was still enforced)

07d046 8y ago

The article mentions this: > In many cities, cashlessness is so common that panhandlers and street musicians use WeChat and Alipay QR codes to ask for change. But these anecdotal cases obscure some of the class-related issues that cashlessness can’t fix, and may worsen. The 2017 World Bank Global Findex database, which measures financial inclusion, estimated that some 200 million Chinese rural citizens remain unbanked, or outside of the formal financial system. Cashless payment systems by design require formal enrollment in banks, which are then tied to the mobile payment platforms that WeChat and Alibaba host.

icebraining 8y ago
Cashless payment systems by design require formal enrollment in banks I think this is the dubious claim. According to comments in this very thread and on other sites, you don't.

TorKlingberg 8y ago

As the article states, you need a Chinese bank account to use any of the new mobile payment methods.

jpatokal 8y ago
It's a bit more complicated than that: you can link WeChat to some credit cards, or get money transferred to your account. However, it's difficult to impossible to do this outside China and/or without a Chinese mobile number. Here in Australia, WeChat/Alipay are starting to proliferate in Chinese shops & restaurants, but it's impossible to join either locally. No shop that I know of will reject cash, but "cash or WeChat/Alipay only" is fairly common.
olalonde 8y ago
That's not totally accurate though. I've been using Wechat pay for months without ever linking a bank account. I can't withdraw my Wechat money to a bank account but I can spend it. I think that's precisely what banks are worried about: when more and more people decide they do not really need to link a bank account.

ElBarto 8y ago

Those new operators are now effectively banks and should be regulated as such.

EZ-E 8y ago

> I am not buying the "think of the poor" angle Me neither, opening a bank account takes one hour, costs less than one dollar, you get the bank card the same day, and there are no monthly fees (for debit card). The only case where it could be difficult is for people without ID (ie second child that were hidden back when the one-child policy was still enforced)