China: First Country to Stop Using Paper Money

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Due to a scientific forecast on July 24th, analysts believe that China will become the first country in the world to stop using paper money. This is inevitably the result of the growing popularity for mobile payment platforms.

Already, more and more Chinese consumers are familiar with paying for their daily purchases with their smartphones instead of cash. The boom of e-commerce and online shopping initiated a beneficial climate for digital payment platforms, such as paying through the instant messaging application, WeChat Pay and Alipay.

In China, mobile payment can be used for the majority of goods and services such as a gas bill, language classes and going for coffee with friends. It is also seen to be more convenient with businesses such as restaurants in Beijing only accepting mobile payment.

Some payment platforms are growing and now want to provide consumer and business credit scoring, investment products and short-term lending. This, of course, coincides with the Chinese government’s objective of increasing consumer spending and access to financial services.