The Cashless Revolution

China has sprinted ahead of the West in payment and financial technology.

One billion people can pay, borrow and invest through built-in-China superapps like Alipay and WeChat. China’s payment systems operate far more cheaply than the credit card systems that dominate in the United States and Europe. Chinese superapps have elbowed out banks and the government. This new breed of financial services is so powerful that a consumer in the United States, Europe, Japan or Korea would need dozens of apps to approach the utility of a single Chinese superapp. With the speed of their adoption, these financial services have all but replaced cash. Even panhandlers have adjusted to China’s post-cash society – they post QR codes to accept donations.

The rise of China’s superapps carries a notable downside. As Beijing continues to tighten its control over Chinese society, a distinct possibility arises that the fintech revolution will only intensify the government’s control over individuals. Beijing adds millions of names to a blacklist every year. In one example, an investigative journalist reported about official corruption and then found...