Home > Blogs > eCommerce Seller Resources > Chinese payment methods: How to collect payments from customers in China

Chinese payment methods: How to collect payments from customers in China

Last update: June 5, 2025

Contents

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.

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
Widely accepted: T/T is an internationally recognised method, making it a reliable choice for cross-border payments Clear audit trail: It provides a clear record of payments for both parties Flexibility: Can be done before or after delivery, depending on negotiated terms	Delays due to currency controls: China’s strict regulations on currency outflows can lead to delays in receiving payments High fees: Both the sender and receiver may have to pay high international transfer fees Risk of non-payment: If goods are shipped before payment, there’s a risk you might not get paid

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
Very secure: The buyer’s bank guarantees payment, so you don’t have to worry about non-payment Trusted worldwide: Letters of credit are globally recognised and commonly used for larger transactions Negotiable terms: Buyers and sellers can negotiate specific conditions in the L/C to suit both parties	Complicated paperwork: The process involves lots of documents, which can cause delays or disputes if not done correctly Higher cost: L/Cs come with administrative fees for both you and the buyer and can be expensive to process Time-consuming: The process can take longer than direct bank transfers due to the involvement of banks and checks

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
Easy to use: Payments are quick and can be done via a phone Lower fees: These apps typically charge lower fees than international bank transfers Instant payments: You can receive payments immediately	Merchant setup required: You can’t simply receive payments like personal Alipay or WeChat transfers; you need to be registered as a merchant to accept business payments Currency issues: Payments are made in RMB, so there will be currency conversion fees and may be even transaction fees for receiving the payments into your bank account Less common for large transactions: While great for smaller payments, these apps aren’t widely used for big wholesale deals

Pros

Cons

Easy to use: Payments are quick and can be done via a phone
Lower fees: These apps typically charge lower fees than international bank transfers
Instant payments: You can receive payments immediately

Merchant setup required: You can’t simply receive payments like personal Alipay or WeChat transfers; you need to be registered as a merchant to accept business payments
Currency issues: Payments are made in RMB, so there will be currency conversion fees and may be even transaction fees for receiving the payments into your bank account
Less common for large transactions: While great for smaller payments, these apps aren’t widely used for big wholesale deals

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
Streamlined process: The platform handles transactions, saving you time Trustworthy for buyers: Buyers trust these marketplaces, making them more comfortable with the purchasing process Secure payments: The platform holds the customer’s payment upon purchase, ensuring you’ll get paid once the order is fulfilled	Commissions: Platforms typically take a commission from each sale, reducing your overall profit Fees: Payments may be made in RMB, so you’ll need a RMB account or risk currency conversion fees when transferring to AUD Payment schedules: E-commerce marketplaces often operate on a weekly or monthly payout schedule, which means you may have to wait to receive your funds after a sale

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
Convenience for buyers: Card payments are quick and easy, especially for large transactions Instant processing: You receive payments faster than with traditional bank transfers or letters of credit	Fees: Credit card transactions usually come with merchant fees, which can eat into your profits Card acceptance: If you’re not set up to major Chinese cards, you won’t be able to receive payments

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
Faster payments: Payments can be received within the same day, as they use domestic networks instead of international ones like SWIFT Hold funds: There’s no need for immediate currency conversion. You can hold funds in Chinese yuan until you’re ready to convert them to AUD, potentially saving on conversion fees if the exchange rate improves Lower fees: Multi-currency accounts often have lower fees compared to traditional bank transfers	Requires setup: You need to set up the multi-currency account in advance Exchange rate risk: Exchange rates can fluctuate and converting at the wrong time could reduce the value of the payment

Pros

Cons

Faster payments: Payments can be received within the same day, as they use domestic networks instead of international ones like SWIFT
Hold funds: There’s no need for immediate currency conversion. You can hold funds in Chinese yuan until you’re ready to convert them to AUD, potentially saving on conversion fees if the exchange rate improves
Lower fees: Multi-currency accounts often have lower fees compared to traditional bank transfers

Requires setup: You need to set up the multi-currency account in advance
Exchange rate risk: Exchange rates can fluctuate and converting at the wrong time could reduce the value of the payment

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.

Based in Sydney, Jim is responsible for the WorldFirst business across Australia and New Zealand. He brings with him over 25 years of experience helping Business Owners, CFO’s and Treasury Managers overcome the challenges with cross border payments and navigating volatile foreign exchange markets.

Jim Vrondas

Author

Country Manager ANZ at WorldFirst

The simpler way to pay and get paid

Save money, time, and have peace of mind when expanding your global business.

Get started

Multi-currency accounts, competitive FX, and global transfers — Everything you need to pay and get paid internationally

Who We Are >

Named a Top Global Fintech Company by CNBC & Statista, we’ve supported 1.5M+ businesses since 2004.

Chinese payment methods: How to collect payments from customers in China

Top ways to collect payments from China