People’s Bank of China Fines Major Businesses Over Illegal Cashless Practices

The People’s Bank of China has fined businesses—including KFC and state-owned entities—for refusing to accept cash following a recent drive to support payment choice and encourage tourism and foreign investment.

Business Insider reports a KFC in Jiangsu Province was fined over $4,000 for declining cash from a customer wishing to pay for a breakfast order. The employee responsible was also fined around $400, which is around two percent of the area’s average annual wage.

Other businesses fined include an Inner Mongolian branch of China Post, an office of New China Life Insurance based in Gansu, and a Jiangsu office of insurance firm PICC Property and Casualty. All of these are state-run businesses.

State media says that while mobile payments now account for around 86 percent of transactions nationwide, the government requires banks to actively facilitate cash use within the country as part of an overall mission to diversify payment options. Xu Hong, Dean of the College of Tourism and Service Management at Nankai University, explains: ‘It is imperative to… provide convenient and tailored services for foreign visitors to meet their payment demand.’ Efforts are also being made to increase acceptance of international credit cards.

Beyond meeting the needs of visitors to the country, improving access to and acceptance of cash will also serve to improve inclusivity for Chinese people such as the very young, the very old and those with certain disabilities. Central Bank data shows around 75 percent of the nation’s seniors continue to use cash.