Citi and Bank of Shanghai Team on International Travel Payments

Citi and the Bank of Shanghai have teamed to streamline payments for visitors to China.

The payments solution announced by the two banks Wednesday (Nov. 13) is designed for the Bank of Shanghai’s TourCard — a prepaid card created specifically for overseas travelers to make mobile payments in China — letting visitors add funds to their TourCard digital account with Bank of Shanghai from another source.

“Mobile wallets have become the dominant payment method in China, with over 84% of users utilizing them for transactions in the past year,” Citi said in a news release. “However, international payments are often impacted by credit card acceptance issues, high interchange costs, and foreign exchange charges, causing friction in the process.”

With the Citi/Bank of Shanghai solution, travelers can access local currency in China by connecting a Bank of Shanghai CNY virtual account to their respective digital wallets in the Bank of Shanghai TourCard mini-app. Funds will flow through a Citi full-value transfer solution, powered by Swift’s Swift Go payments solution.

“Around the world, people are expecting more when they move money across borders — more speed, certainty and choice,” said Kevin Wong, Swift’s chief executive for the Asia Pacific (APAC) region.

“This is a great example of how we are working with our community to raise the bar, enabling new options for financial institutions to elevate the experience for their customers.”

Research by PYMNTS Intelligence shows that digital wallets are of great importance to travelers, 74% of whom say the technology is key to their experience.

This sentiment is especially pronounced among wealthier travelers and millennials, with use rates at a respective 83% and 82%. And digital wallet users spend an average of $44 per visit at restaurants, compared to the $33 spent by consumers using traditional payment methods.

“This trend reflects a broader consumer preference for seamless, efficient payment solutions that enhance the overall travel experience,” PYMNTS wrote earlier this year.

The collaboration between Citi and the Bank of Shanghai comes one week after the announcement of an expanded partnership between PayPay, a QR payments operator in Japan, and AliPay+ to allow tourists to make secure payments with their own digital wallets.

Visitors to Japan who use Alipay+ payment partner apps will be able to pay by scanning PayPay QR codes at select merchants throughout the country, while also getting access to special promotions available during the peak travel seasons of Christmas and New Year.