Local governments in China issue free digital coupons to stimulate consumption amid coronavirus pandemic

Local governments in China are distributing free digital coupons on mobile payment platforms like Alipay and WeChat Pay to help stimulate domestic consumption as the coronavirus pandemic hammers the world’s second-largest economy.

On Sunday, Jiaxing city in Zhengjiang province, announced that it would issue 200 million yuan (US$28.2 million) worth of digital consumer coupons to the public, of which 150 million yuan could be redeemed through WeChat Pay, operated by internet giant Tencent Holdings.

Last Thursday, the Hunan Federation of Trade Unions announced that employees and trade union members in the province would receive vouchers that can be used at 340,000 merchants in Hunan, also via WeChat Pay.

Hangzhou, the capital of Zhejiang province, plans to distribute 1.68 billion yuan worth of consumption coupons to support more than six million local offline merchants, in sectors ranging from retail to catering, to stimulate consumption. On Friday the city began distributing the first batch – two million coupons valued at 50 yuan each – that can be redeemed when paying for items, either online or offline, using Alipay.

Alipay is operated by Ant Financial, an affiliate of Alibaba Group which owns the South China Morning Post.

Nanjing, the capital of Jiangsu province, has distributed 318 million yuan worth of consumption coupons, for use in services such as catering, sports and tourism, as well as welfare for low-income communities. From March 15 to March 22, citizens in Nanjing were able to apply for the coupons, which provided discounts of 50 or 100 yuan, through the local public service app “My Nanjing” and redeem discounts via Alipay.