New research brief: Barriers to the full digitization of wage payments in supply chains in China – A rapid assessment

While digital payments have become ubiquitous across China, our newly released research brief reveals that some factory workers are still paid in cash, highlighting key barriers slowing the transition to digital wage payments in the manufacturing sector.

Despite China’s rapid embrace of digital finance, the research finds that digital wage adoption remains uneven, especially in smaller factories or those located in less urbanized areas.

The brief identifies several structural and social factors that contribute to this divide. Factory size, geographic location, and operational costs play a significant role in determining payment methods. Additionally, worker concerns around trust, data security, and limited understanding of taxation and social protection systems further hinder adoption.

The report offers targeted recommendations for brands, factory managers, and policymakers to responsibly encourage digital wage systems.