Cash, Credit Cards, or Alipay in Shanghai: What Foreigners Actually Need (2026)

Yes — cash and foreign credit cards work in Shanghai, but Alipay is the only payment that works everywhere. Cash is legal tender, so shops cannot refuse it, but most taxi drivers and small stalls in 2026 cannot break a ¥100 bill. You will overpay or walk out without your snack. Physical Visa or Mastercard works at four-star and five-star hotels, the Bund's upscale restaurants, and large malls like IFC or K11 — about 20% of the spots a tourist actually visits. Everywhere else, including the metro turnstile, a Family Mart, a Didi taxi, and most restaurants under ¥300 per head, expects a QR-code scan. Set up Alipay before your flight. Link a Visa, Mastercard, JCB, or Discover card directly inside the app — no Chinese bank account needed since 2024. Transactions over ¥200 carry a 3% foreign-exchange fee; under ¥200 is free. Verification needs a passport photo and can take up to 24 hours, so do this on home Wi-Fi, not at Pudong arrivals. Carry ¥300–500 in ¥10 and ¥20 notes as backup for old taxis, temple donation boxes, and stalls in places like Qibao Old Town where a phone signal drops. The app needs data to generate the payment code, so add a roaming plan or local eSIM before you land.