China Implements Digital Yuan Payments on Subways and Buses

China Implements Digital Yuan Payments on Subways and Buses

Two Chinese cities are promoting the digital yuan for payment in the public transportation system. Commuters on the subway in Ningbo and those taking the bus in Guangzhou will be able to purchase their tickets using the state-issued digital currency.

Transit Fare Payment with Digital Yuan

Ningbo Rail Transit, which runs the subway system in the city of Ningbo in the Chinese province of Zhejiang, has launched payments in Digital Yuan, the Central Bank Digital Currency (CBDC) issued by the People’s Bank of China. The company has announced that 125 stations will accept the coin.

The city’s 9.5 million citizens and visitors can now pay their subway fares through the Ningbo Rail Transit app. Users will have to link an e-CNY wallet opened with any of the six large Chinese banks participating in the efforts to popularize the digital version of the national fiat to the application.

Commuters will be required to scan a QR code with their smartphones at the entrances to make a payment. Some of those who choose the digital yuan option will be rewarded with a bonus, and their ride will cost them a penny in a promotion valid till Sept. 4, reveals a report.

China is constantly expanding the pilot zone for the digital yuan project, with nine subway systems in various parts of the country now accepting digital currency. These include subway stations in the capital, Beijing, where e-CNY payments were implemented last year.

The bus passengers in Guangzhou can now buy tickets with digital yuan. They will be able to use their e-CNY wallets on 10 bus routes, including some sightseeing tours for visitors.

Officials quoted by the local media indicate that the selected bus routes pass through some of Guangzhou’s most scenic spots and popular locations. They also promised to expand the scope of the pilot project in the future.

Commuters and tourists will have to download and install the digital yuan app and set up a wallet on their mobile phones to take advantage of the new payment method. When they get on a bus, they can use the onboard electronic toll terminal to pay for the fare.