Mobile payments are becoming more and more popular in China because of the convenience they add to our daily lives. Competition among service providers has intensified too, with big players investing heavily in their own mobile payment services.

Young people in China are getting comfortable in going out without carrying cash. A smart phone is all that they need.

"A vanilla Latte is 60 yuan. You just open your Wechat payment code and place it here, it will do," said a man.

Fresh data shows that about 80 percent of China's 360 million mobile payment users do so on a daily basis.

"Living in Beijing, more than 80 percent of the purchases are happening on mobile phones," said a Beijing resident.

"I seldom bring more than 100 yuan cash on me, now I only have about 10 yuan, all I need is my smart phone," said a Beijing resident.

China's popular messaging application Wechat promoted its payment services with over 700 thousand shops in China earlier this month.

Tencent has invested 100 million yuan to promote its Wechat payment. That comes as E-commerce giant Alibaba has expanded its Alipay service to Europe to serve Chinese tourists.

"We will consider targeting the 2B market, such as the agricultural and industrial sectors," said Liu Peng, operation manager of Wechat Pay, Tencent.

Some traditional companies have followed the way of WeChat and Alipay. Industrial and Commercial Bank of China, for one, launched its own payment system last month.

"ICBC has launched this smart code so we can build a direct link with our customers. These cash flows will provide credit lines for our customers. We will build a good data platform to better solve financing problems for small and micro firms," said Wang Dufu, deputy director of Credit Card Center, ICBC.

A study shows that the mobile payment market in China is expected to soon exceed 12 trillion yuan and will grow to more than 18 trillion yuan by 2018.