Digital wages

Barriers to the full digitization of wage payments in Chinese supply chains – A rapid assessment

While digital payments are the norm in China, some factories still pay wages in cash. This research explores the barriers to digital wage adoption, especially among older, less educated, and migrant workers. It finds that factory size, location, and operational costs impact payment methods, and concerns over trust, security, and limited understanding of taxes and social protection slow the transition. The report offers targeted recommendations for brands and factory managers to promote responsible adoption of digital wages.