Between receiving money through AliPay and receiving cash, which one is better?

In this era, it must be said that making payments through applications is commonly seen in transactions. Almost 100% of Chinese people tend to transfer money via an application called 'Alipay', to the extent that they hardly use cash anymore.

However, when traveling or working in Thailand, the use of Alipay is often found in various tourist spots or famous stores.

Is it good for general stores to accept payments through Alipay?

When stores have Chinese customers coming in to purchase goods or use services, they might be hesitant about whether they should accept payments through Alipay or cash. Each method has its own pros and cons. Let's consider them together.

Receiving money through AliPay

Benefits of accepting payments through Alipay

From the perspective of Chinese customers

Payments can be made without needing cash, as the majority of the population in China prefers to pay through Alipay or WeChat Pay instead of using cash. If a store can accept payments through Alipay, it facilitates the payment process for Chinese customers.

From the perspective of the store

The store can sell products of higher value because there's no limit in payment. If the store accepts only cash, Chinese customers will spend only the amount of cash they have prepared. However, if the store can accept Alipay, customers can transfer and pay in higher amounts.

Disadvantages of accepting payments through Alipay.

Stores will incur a fee, which on average is around 1.8-2.5%.

Receiving cash

Benefits of accepting payments through cash

Cash remains a method many people use. It's easy and fast, without the need to worry about internet connectivity, and there are no fees involved.

Disadvantages of accepting payments through cash

There might be communication issues regarding the quantity of products, and if Chinese customers don't have enough cash, it could result in missed sales opportunities.

Therefore, knowing the pros and cons of both types will help stores make more informed decisions.