Can I pay with Alipay or WeChat in Bangladesh? A comprehensive analysis of the current status of Chinese mobile payments in Bangladesh

I. Basic situation of Alipay and WeChat Pay in Bangladesh

A common question for Chinese tourists, business people or Chinese living in Bangladesh who are planning to visit the country is: "Can I pay with Alipay or WeChat in Bangladesh?" The answer is:Some scenarios can be used, but popularity is limited. The acceptance of China's two major mobile payment platforms in Bangladesh is still in a developmental stage compared to other countries in Southeast Asia.

Currently, Alipay and WeChat Pay are available mainly at the following locations:

• Some mid- to high-end hotels (especially those that receive more Chinese tourists)
• Some shopping malls and duty-free shops that do business with China
• Selected Chinese restaurants and Chinese supermarkets
• Few tourist attraction ticket sales outlets

It is worth noting that these merchants that can use Chinese mobile payments are mainly concentrated in the core business districts of major cities such as Dhaka and Chittagong. Ordinary street shops, local markets or daily consumption places such as taxis basically do not support these two payment methods.

II. Why is Alipay/WeChat not widely available in Bangladesh?

1. Status of local electronic payment development

Bangladesh's own electronic payment system is developing rapidly. Popular local mobile financial services include bKash, Nagad and Rocket, which have penetrated into the daily lives of the population. Based on 2023 data:

• bKash has over 60 million users
• Nagad has about 50 million users
• Approximately 30 million Rocket users

In contrast, the market space for foreign payment systems is relatively limited.

2. Regulatory policy constraints

Bangladesh has stricter regulatory provisions for cross-border financial flows:

• Strict foreign exchange controls: All transactions involving foreign currencies must be reported through the banking system.
• Data sovereignty requirements: Financial transaction data need to be stored on domestic servers
• High licence threshold: Foreign payment companies need multiple licences to operate

These factors make it more difficult for international digital wallet providers to enter the country's market.

3. Smaller target user groups

Although it has grown in recent years, the number of Chinese people on the ground is still limited:

• About 50,000 resident Chinese
• Less than 100,000 visitors per year

Such a market size can hardly support large-scale infrastructure investment.

III. Recommendations for alternative solutions

The following options can be considered if there is a need for convenient local electronic transactions:

It is recommended to carry a variety of payment instruments to cope with different scenarios, e.g. "credit card + small amount of cash + bKash backup".

IV. Analysis of future development trend forecasts

With the deepening of economic and trade relations between the two countries, the following changes are expected.

1.Pilot expansion
-May add 20 new supporting merchants within this year
-Airport duty-free zone coverage expected to reach 80%

2.Enhanced technical cooperation
Three local banks are already negotiating with Tencent on interface docking matters

3.Limit management relaxation
The single transaction limit may be raised to the $500 level

It is recommended to keep monitoring the monthly revisions of the Measures for the Management of Non-Resident Accounts issued by the Central Bank for the latest policy information.

To summarise, there are a lot of inconveniences in using Alipay/WeChatPay in the country at this stage, but targeted preparations can improve the experience. Proper financial planning will ensure a smooth and worry-free trip!

V. Practical tips on how to use Alipay/WeChat payment in Bangladesh

1. Early confirmation of payment feasibility

Before spending, it is recommended to take the following steps to confirm whether China Mobile Payment is supported:

• View Merchant Logo: Look out for Alipay or WeChat Pay logo stickers at the cashier's counter.
• Ask the clerk directly:: "Do you accept Alipay or WeChat Pay?"
• Verification via APPCheck for partner merchants in Alipay's "Outbound" section or WeChat's "Cross-border Payment" function.

2. Optimising account settings

To ensure a smooth transaction, these preparations should be completed before travelling:

• Open international payment function: Enable offshore access in settings after logging in to your account
• Bundle Dual Currency Credit Cards: Recommended to tie up Visa/Mastercard as a back-up source of funds
• Download the English version of the interface: Facilitate hassle-free communication when displaying payment codes to local merchants

3. Approaches to common problems

Special Reminder: Due to the delay in cross-border settlement, there may be cases where the payment is successfully deducted but not received by the merchant. In this case, be sure to keep the electronic voucher and record the registered name of the merchant (shown on the payment details page) for subsequent appeals.

VI. Guidelines for safe use

Special attention should be paid to the security of funds when using mobile payments overseas:

1.Anti-scratch measures
-Enable fingerprint/face ID authentication
-Disable the micro-privacy payment function

2.Identifying fraudulent practices
Be wary of the so-called "official customer service" to ask for verification code behaviour

3.Emergency Response Process
Immediate execution of unusual transactions detected.
Freeze account
Contact Card Issuing Bank
Report a case and get a receipt

It is recommended to put the domestic customer service phone number (+86)571-2688 into your mobile phone address book as an emergency contact.

VII. Special applications for business scenarios

There are compliance paths for professionals involved in import and export trade.

1.B2B Large Settlement Channel
Transfers of more than $50,000 per transaction can be made through the transit services of institutions such as Standard Chartered Bank

2.Customs Deduction Process
Keeping a record of the transaction with the MTCN number can be used as a proof of import VAT credit

3. "Digital Silk Road" pilot enterprises can also apply for an exclusive tariff package (minimum 0.6%).

Specific qualifications include: annual trade volume with China of over US$2 million + BGMEA accredited membership.

VIII. Cautions due to cultural differences

Avoiding misunderstandings due to differences in habits.

-Religion: Some shops in conservative areas may be reluctant to display a Chinese-language payment gateway.

-Timing: Many exchange centres are closed on weekends (Friday + Saturday), so you need to have enough cash in advance.

-Bargaining culture: just because you see a QR code doesn't mean you can't bargain, it's the norm in the local market.

Best practice is to have small cards with bilingual instructions: "Please scan this code to receive payment in RMB, converted to taka at the real-time exchange rate".

With the signing of the Memorandum of Understanding on Digital Economy Co-operation between China and Bangladesh, a breakthrough is expected by the end of 2024. At this stage, it is most prudent to adopt a combined payment strategy, i.e.: "mobile payment coverage of 30% + credit card of 40% + cash of 30%" ratio to allocate funds for preparation. Stay tuned to us for first-hand policy updates and business opportunities!