Chinese payment methods: How to collect payments from customers in China
Last updated: 5 Jun 2025
Discover the best ways to collect payments from Chinese customers while navigating cross-border regulations and optimizing your cash flow
Key takeaways
- Each available payment method comes with its unique fees, setup requirements and processing times
- Bank transfers (T/T) are a reliable method for cross-border payments but they come with high fees and sometimes even delays
- Letters of credit (L/C) offer secure payments backed by a buyer’s bank but involve complex paperwork, higher costs and longer processing times
- Alipay and WeChat Pay are widely used for smaller transactions, offering lower fees and instant payments but they require merchant setup and have transaction limits
- Chinese e-commerce platforms streamline payment processes but charge commissions, and payouts may take weeks to process.
- Multi-currency accounts allow global businesses to hold Chinese Yuan, avoiding immediate or unnecessary double conversion. They also offer competitive exchange rates.
China is Australia’s largest trading partner and one of the world’s biggest consumer markets. According to McKinsey, China’s vast market size will directly translate into an additional RMB 10 trillion in retail sales in the next 5 years. At this scale, China will become the single-largest growth market worldwide.
For Australian businesses, this presents a huge opportunity.
If you’re selling goods in China – whether to distributors, supermarkets, agents or on e-commerce platforms- receiving payments can be relatively straightforward, but there are some things to be aware of.
The payment methods you use to get paid can greatly impact the speed and security of transactions. It can also directly affect your profit margins.
While China’s business environment has modernised significantly, the Chinese government still implements strict measures on the flow of funds, especially cross-border payments. So, it’s important to ensure your marketplace collections are streamlined and follow all the necessary regulatory requirements.
Table of Contents
Top ways to collect payments from China
Bank transfers (telegraphic transfer or T/T)
A bank transfer (often referred to as a telegraphic transfer or T/T) is one of the most common methods of payment between Australian companies and Chinese buyers. It involves money being sent electronically from one bank to another.
| Pros | Cons |
|---|---|
Letters of credit (L/C)
A Letter of credit is a financial guarantee from the buyer’s bank that you’ll get paid once you meet certain conditions, like delivering the goods.
| Pros | Cons |
|---|---|
Alipay and WeChat Pay
Alipay and WeChat Pay are popular mobile payment apps in China, mostly used for smaller transactions.
Both mobile payment apps are now a staple among Chinese customers, offering online shopping, social networking and a wide range of other services. Alipay holds 54% of the digital payment market share in China, followed by WeChat Pay with 42%.
In 2023, Alipay had 1.25 billion users, with 900 million of them residing in China. WeChat Pay had 935 million users in the same year.
| Pros | Cons |
|---|---|
- Open 15+ local currency accounts and get paid like a local
- Pay suppliers, partners and staff worldwide in 100+ currencies
- Collect payments for free from 130+ marketplaces and payment gateways, including Amazon, Etsy, PayPal and Shopify
- Take control of spending with the World Card, a business expense card that saves you more with 1% cashback. Learn more
- Save with competitive exchange rates on currency conversions and transfers
- Lock in exchange rates for up to 24 months for cash flow certainty
E-commerce platforms
If you’re selling on Chinese e-commerce platforms like Tmall Global or Taobao, these platforms will handle the customer transactions for you. During the setup process, you’ll be asked to provide your business bank details so funds can be deposited directly into your account after fees and commissions are deducted.
| Pros | Cons |
|---|---|
Credit card payments
If you’re set up to receive credit card payments as a merchant, this can be a convenient way to get paid by Chinese buyers.
| Pros | Cons |
|---|---|
Multi-currency accounts
A multi-currency account allows businesses to hold, send and receive multiple currencies through a single account, eliminating the need to convert funds immediately. It’s becoming a popular alternative to bank transfers for cross-border payments.
So, by using a multi-currency account, you can collect payments in CNH, hold the CNH funds in your account to pay your suppliers and shipping partners based in China, and then repatriate the remaining funds back to your account.
| Pros | Cons |
|---|---|
WorldFirst makes it easy to do business in China
Picking the right payment method for your business can streamline your cash flow. Whether you go with bank transfers, multi-currency accounts or mobile payment platforms like Alipay, it’s important to choose what works best for your situation.
It’s also just as important to find a payment partner that can help you make fast, reliable and secure international payments at competitive exchange rates.
The World Account is your easy, fast and secure solution to global business payments. You can get paid from around the world in 20+ currencies, including CNH, USD, AUD, NZD, EUR, SGD, JPY and more.
To open a CNH account, you don’t need to set up a legal entity for your business in China and get a local address. You can have a business registered in Australia and directly open a CNH bank account through WorldFirst. Each local currency account is opened under your business’s name. You’ll also get a bank account number and bank code to make marketplace collections easier.
Setting up a World Account and receiving payments is free. You are only charged when sending payments.
With a World Account, you can:
- Leverage local account details and domestic payment networks to ensure your money reaches you faster
- Sell like a local by accepting payments from customers in their local currency
- See your account balances with one login and move money between your currency accounts when it suits you
- Hold collected funds in your account to pay business partners directly or repatriate funds back to your bank account any time at competitive exchange rates
- Lock in exchange rates for up to 24 months and make revenue more predictable
Disclaimer: The information contained is general only and largely our views. Before acting on the information you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, estimates, mentioned products/services and referenced material constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. WorldFirst shall not be responsible for any losses or damages arising from your reliance of such information.
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