By 2030, China’s fintech transaction value is forecast to grow from US$4.86 trillion in 2025 to US$10.06 trillion.
Payments, wealth management, digital lending, and other financial services have flourished under tech conglomerates like Alibaba (Alipay) and Tencent (WeChat Pay).
In 2024, mobile payments dominated everyday life across China, and segments like digital assets and online investment tools show strong growth.
However, strict regulations and an ever-evolving environment require foreign financial institutions to prepare carefully.
This guide breaks down the essential considerations for expanding a financial services business into China, covering everything from the regulatory framework to creating an online presence that can compete in the market.
Disclaimer: This guide is informational and does not constitute legal advice. Chinafy is not a legal or corporate advisory entity, and, given that every business is different, we suggest consulting with your internal legal counsel if you would like advice on any legal or compliance-related concerns, or alternatively we can connect you with one of our partners.
TL;DR
Huge fintech market: China’s digital payments user base is expected to reach 1.245 billion by 2028.
Growing wealth management demand: The digital investment market’s AUM may hit US$1,623 million by 2025, driven by middle-class growth.
Duopoly in B2C payments: WeChat Pay and Alipay are dominant, but niche opportunities exist in B2B fintech solutions.
Evolving regulation: The era of “wild west” fintech has ended. Clearer rules favor transparent, compliant foreign firms.
Website performance hurdles: Sites often load slowly or partially within China. Chinafy can help optimize performance.
China’s near-cashless society offers an enormous user pool. Mobile transactions are the norm, and consumers are accustomed to e-wallets for everyday purchases. Fintech adoption is high, which makes new financial services easier to introduce if they adapt to local habits.
China encourages fintech innovation but imposes strict rules to prevent fraud and protect consumers. This regulated environment can favor dependable, compliant foreign companies that meet local standards.
With the middle-income population expanding and the economy maturing, there is a greater appetite for wealth management, insurance, and investment products. Average Assets Under Management (AUM) per user in the digital investment space may exceed US$206.80 by 2025, indicating a strong market for products offering higher returns or international diversification.
WeChat Pay and Alipay command much of the retail sector. However, smaller fintech providers focus on B2B services, such as digital infrastructure for banks or specialized solutions for SMEs. Partnering with these niche players can expedite market entry.
China’s fintech history has seen rapid growth and subsequent regulatory clampdowns, most notably in P2P lending, which faced widespread fraud and was ultimately cleaned up by authorities. As a foreign financial services provider, you’ll need to stay on top of:
Licensing requirements: Banking, investments, lending, and insurance each have distinct frameworks.
Data protection: China’s Personal Information Protection Law (PIPL) mandates strict data privacy and compliance measures.
Capital controls: Cross-border transactions face added scrutiny. Compliance with foreign exchange rules is essential.
The era of unchecked expansion is over. Although the regulatory environment is complex, it is designed to protect consumers and foster stability. Foreign entrants with solid compliance and consumer protections often find a receptive environment for sustainable growth.
Lifestyle integration: Many users expect financial services to exist within super-app ecosystems (e.g., WeChat) or e-commerce platforms (e.g., Taobao).
Trust signals: Prominent local partnerships, Mandarin-language interfaces, and recognized payment options add credibility. Trust is a key factor in China’s financial sector. Consumers often lean on established brands, governmental endorsements, or large-scale platforms.
User experience: Chinese consumers prefer seamless digital journeys, quick payments, and in-app service options.
By 2024, China’s digital payments accounted for over half of all global digital transactions. To succeed, your fintech or financial services platform must seamlessly integrate with Chinese digital wallets and e-commerce networks.
Integration with WeChat Pay and Alipay: Being compatible with these duopoly platforms is key to widespread user adoption.
Sophisticated risk and fraud detection: Given massive transaction volumes, platforms need cutting-edge anti-fraud measures.
With total AUM in digital investments projected at US$1,623 million by 2025 and an expected Digital Assets revenue growth of 9.78% in 2026, numerous opportunities arise for:
Robo-advisory services
Online brokerage for retail investors
Cross-border payment gateways (subject to capital flow rules)
China’s state-owned banks and established tech conglomerates (Alibaba, Tencent) remain influential. Forming a joint venture, licensing your technology, or providing back-end solutions to these institutions can help navigate local regulations and scale faster.
Local banks: They often need advanced tech for lending, risk management, and digital wealth solutions.
B2B fintech: Specialized providers focus on supply chain finance or analytics. Joint solutions can boost market standing.
Insurance providers: Online underwriting tools are in demand, opening the door to partnerships with foreign insurers.
Even if you partner with local financial institutions, your digital platforms must be accessible and fast for Chinese users. Many foreign websites and apps still face performance issues.
Blocked or slow third-party resources: Services like Google APIs, YouTube videos, and hundreds of lesser known third-party resources perform poorly or are restricted, causing severe loading delays.
Infrastructure limitations: Hosting your site outside of China, even with a global CDN, can introduce high latency, as data has to travel further to get to the end user in China.
Before making any changes, run speed tests from within China to see how your site performs. If you discover performance issues, consider the following:
Use a China-compatible CDN: Some content delivery networks have PoPs in mainland China (e.g., Tencent Cloud, EdgeNext, Alibaba Cloud) but typically require a local business entity and ICP filing. It’s also important to note that CDNs alone cannot solve all performance issues, as they won’t accelerate third-party resources that are blocked in China.
Minimize blocked or slow third-party resources: If you’re tailoring your site to a China-only audience, it makes sense to remove or replace resources from non-performant or blocked domains. This can improve loading speeds and ensure your site remains functional. However, if you’re using your existing global site, doing this would be detrimental to global visitors.
The way third-party resources work in China differs and evolves over time so there is no one-off list or means to edit these resources. Changes will likely have to be made on an ongoing basis.
Consider onshore hosting: Hosting in China can sometimes be beneficial from a business-level perspective but comes with regulatory obligations like setting up a local entity and obtaining an ICP license. Also, like with using a China CDN, hosting your site in China doesn't automatically make it work there. It’s still necessary to optimize your website for third-party dependencies, content compliance and user experience.
Chinafy offers an agile approach for both companies with either an onshore or offshore presence. Chinafy optimizes your existing site for Chinese users without necessarily requiring local hosting.
Removes, replaces or optimizes third-party resources: Chinafy combines both in-person and platform-level features to detect and replace blocked or slow resources that cause loading delays.
Leverages a China-friendly CDN: Speeds up content delivery with an onshore CDN or near-China CDN depending on whether your business meets certain prerequisites.
Requires minimal IT involvement: Typically takes only a couple of weeks to implement and maintain both global and China-specific performance in parallel.
China offers an expansive space for global banks, fintechs, and digital asset providers. Its massive consumer base, near-cashless society, and supportive regulatory stance create both opportunities and challenges for newcomers.
Regulations first: Strict rules shape operations. Adapting early prevents setbacks.
Adapt to local preferences: Mobile-friendly design, Simplified Chinese content, and recognizable payment solutions build trust.
Leverage partnerships: Aligning with local banks, insurers, or niche fintech players can speed up entry.
Optimize online performance: Websites or apps must load quickly. Onshore hosting or solutions like Chinafy address bandwidth and regulatory issues.
A thorough strategy and compliance-driven approach help foreign financial services businesses tap into China’s expanding market while meeting the evolving needs of tech-savvy users.
The insights shared in this article are based on our research, observations, and experiences at the time of writing. They are intended to inspire ideas and foster conversation, not to replace professional consulting advice tailored to your unique situation. Always consider your specific needs before making business decisions.