Beijing and Shanghai top the number of users of cashier-less vending machines and self-service retail outlets, according to a latest report by the China Commerce Association for General Merchandise.
Other cities in the top five also include Shenzhen, Guangzhou and Hangzhou, the report said.
The consumer satisfaction rate jumped to 85 percent from 55 percent after mobile payment options were added to automatic vending machines and self-checkout vending stations.
The product categories have also expanded to include not only coffee and instant noodles but also fresh coconut and even tailor-made dresses.
Those born during the 1990s are the majority users of cashier-less vending machines and self-service retail outlets. WeChat payment's usage data also show that male consumers outnumbered female shoppers when it comes to using self-service vending machines.
The report also revealed the emergence of new retail locations such as community neighborhoods, parking lots and office buildings.
A joint report by the Ministry of Commerce's Department of Circulation Industry Development, China Commerce Association for General Merchandise and Fung Business Intelligence said the retail industry started to reap the benefits of business upgrading in the past year and that customers have welcomed the transformation and emerging retail formats.
"We fully support retailers and e-commerce giants' push into the cashier-less retail formats and this innovative business models are helping the retail industry to gain new development momentum," said Chu Xiuqi, director at the China Commerce Association for General Merchandise.