China Cards and Payments – Opportunities and Risks to 2024

GlobalData’s 'China Cards and Payments – Opportunities and Risks to 2024' report provides detailed analysis of market trends in the Chinese cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, cards, credit transfers, direct debits, mobile wallet, and cheques during the review-period (2016-20e).

The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2020e-24f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes.

The report brings together GlobalData’s research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers detailed regulatory policies and recent changes in regulatory structure.

This report provides top-level market analysis, information and insights into the Chinese cards and payments industry, including –

– Current and forecast values for each market in the Chinese cards and payments industry, including debit, credit, and charge cards.

– Detailed insights into payment instruments including cash, cards, credit transfers, direct debits, mobile wallet, and cheques. It also, includes an overview of the country's key alternative payment instruments.

– E-commerce market analysis.

– Analysis of various market drivers and regulations governing the Chinese cards and payments industry.

– Detailed analysis of strategies adopted by banks and other institutions to market debit, credit, and charge cards.

Scope

– The licensing of international schemes by the PBOC to set up a domestic bankcard-clearing institution in the country is likely to spur competition in the Chinese payment card market, which has, until now, been dominated by CUP. In June 2020, Express (Hangzhou) Technology Services, a joint venture between American Express and LianLian DigiTech, was awarded the network clearing license from PBOC and CBIRC. As a result, American Express became the first foreign card network to secure a license to clear domestic card payments in China. After a period of two months, the American Express joint venture commenced its operations in August 2020. Earlier, in February 2020, Mastercard, with its joint venture partner NetsUnion Clearing Corp., received approval from the PBOC to set up a domestic bankcard clearing system. However, the company is yet to receive its network clearing license.

– The government is taking several initiatives to push credit card uptake and use. For example, it introduced the ‘Notice Concerning Matters in Relation to Credit Card Operations’, which came into effect on January 1, 2017. It also gave banks the right to independently determine minimum repayment amounts and interest-free periods, which enabled banks to offer tailored credit card products to their customers. The annualized interest rate on credit cards was also capped from at least 12.775% up to 18.25%. Meanwhile, starting January 1, 2021, the interest rates caps on credit cards were completely removed. The interest rate can be determined by the issuer and card holder through independent negotiation. The lower borrowing costs will further push competition between traditional lenders and fintech companies and thereby support overall credit card market growth.

– Buy now pay later’ is an emerging trend globally. The service is also gaining traction in China, particularly among Generation Z consumers. It serves as an alternative flexible payment tool for individuals who lack a credit card. To benefit from growing adoption of ‘buy now pay later’ services, in March 2020, Tencent introduced Fen Fu, a credit feature in its WeChat app, allowing its users to shop and pay later. The interest is calculated on a daily basis and there is no fixed repayment date. Users can repay the amount at any time in full or can pay the due amount in monthly installments. In February 2021, LexinFintech, a consumer finance platform, also announced the launch of its ‘buy now pay later’ service, Maiya, in China.

Reasons to buy

– Make strategic business decisions, using top-level historic and forecast market data, related to the Chinese cards and payments industry and each market within it.

– Understand the key market trends and growth opportunities in the Chinese cards and payments industry.

– Assess the competitive dynamics in the Chinese cards and payments industry.

– Gain insights into marketing strategies used for various card types in China.

– Gain insights into key regulations governing the Chinese cards and payments industry.

Companies mentioned

China Construction Bank

Agricultural Bank of China

Postal Savings Bank of China

Industrial & Commercial Bank of China

Bank of China

Bank of Communications

China Merchants Bank

China Guangfa Bank

Agricultural Bank of China

China Everbright Bank

Visa

Mastercard

American Express

Diners Club

China UnionPay

JCB

Table of Contents

Table of Contents

Payment Instruments

Card based Payments

Merchant Acquiring

Ecommerce Payments

Buy Now Pay Later

Mobile Payments

P2P Payments

Bill Payments

Alternative Payments

Job Analysis

Payment Innovations

Payment Infrastructure & Regulation

Appendix

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