A Comparison of the Stimulus Payment Approach of China and the United States in the Wake of COVID-19

Electronic payments have their roots in the 1870s, when Western Union debuted the electronic fund transfer (EFT) in 1871. Since its introduction, it has passes through a number of modifications with the aim of improving the previous system. In this study, the researcher attempts to compare the stimulus payment approach of the People’s Republic of China and the United States of America in the wake of Covid-19. Whilst the Chinese government is using or had the electronic payment to pay stimulation packages to the citizens, America on the other hand is making payment via checks and this payment takes a longer time as compared to electronic payment. On why the American government is not employing the electronic payment, it was revealed that they (Americans) are very comfortable in using checks. Besides, majority of them have been using it whilst only few people uses the electronic payment. The study further revealed that among others, the Chinese adopted the electronic payment because historically, they are known for technological breakthrough and innovation and also, they do trust the system. Again, the Red Packet, which was introduced by WeChat Pay is part of their culture. The researcher also suggested that for the US government to adopt electronic payment to pay stimulation packages, there is the need for the government to have a talk with the existing companies and also new I.T. firms where necessary to discuss how it would be done whilst engaging in massive public education. Despite the success of the China electronic payment system, the researcher suggested, among others, that China should strengthen the industry chain corporation among third-party and financial institutions.