Financial Cards in China
Euromonitor International's Financial Cards in China report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
Get immediate access to strategic market analysis when you buy reports online
Tables: 80 | Publication date: Mar 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Financial cards in circulation; Transactions
Executive summary
China UnionPay network progress
China UnionPay (CUP) has plans to enlist 60% more merchants and roll out 14 million terminals, including mobile telephone payment services early in the forecast period. UnionPay owns and operates the country’s sole bank card transaction system, and stands to gain from overseas banks keen to make inroads into China’s fledgling local currency credit card environment with its support, after the banking market opened up at the end of 2006. Like Visa or MasterCard, CUP wants to be accepted worldwide, with service expanded overseas and extended acceptance.
New bank card regulations
At the start of 2007 China Banking Regulatory Commission (CBRC) allowed foreign banks to open subsidiaries in Mainland China to issue credit cards. The government also removed regional restrictions and other limits on foreign-funded banks, giving them the same treatment as Chinese banks. The government will encourage and guide foreign banks to set up incorporated banks registered in China, which will enjoy the benefits of the country’s banking sector. Foreign banks with Chinese corporate status can issue local currency credit cards. In order to cope with competition from foreign banks, the country has initiated reforms of its state-owned banks which had high non-performing loan ratios. Three of the four largest state-owned commercial banks are listed on the stock market.
China Merchants Bank uses credit cards for growth
China Merchants Bank (CMB) was rated the best in the general category for its popular dual-currency credit cards in 2006 according to a survey conducted by the Chinese credit card portal 51credit.com. It will focus on its credit card business to offset its lack of outlets and compete with state-owned counterparts. Although the bank has the lead in the country’s lucrative credit card business, it intends to push its advantage by issuing more options for cardholders.
New rural payments system required
A growing middle class and a decade of double-digit annual growth in retail sales have attracted businesses hoping to cash in on emerging China. Yet outside the main cities, in the vast expanse of rural China, which is home to 750 to 800 million people, the reliance on cash makes it difficult for consumers to spend, and for retailers to sell. Recognising the need for a new rural payments system, People’s Bank of China directed domestic banks to devise a solution. China views the development of a low-cost, non-cash payment network in rural areas as critical to increasing rural spending and closing the wealth gap between rural and urban areas.
Foreign banks optimistic for business
The business of foreign banks operating in China is booming, and will continue to expand, with a growing Chinese middle class, soaring foreign investment and the opening up of the regulatory environment. Bank of Communications, the mainland’s fifth-largest lender and the strategic partner of HSBC, released a new credit card targeting China’s growing group of young professionals and executives. Foreign lenders are not allowed to launch credit cards in China without a domestic partner. These banks believe there is a huge development potential with China’s rapid economic growth, with only a few predicting that the country will not be able to maintain strong growth over the forecast period.
Table of contents
FINANCIAL CARDS IN CHINA : MARKET INSIGHT
EXECUTIVE SUMMARY
China UnionPay network progress
New bank card regulations
China Merchants Bank uses credit cards for growth
New rural payments system required
Foreign banks optimistic for business
KEY TRENDS AND DEVELOPMENTS
Banks accelerating card issuing
EMV still a long way off
Card usage on the increase
China tourists spending high with credit cards
M-commerce grows, but is outpaced by online payments
OPERATING ENVIRONMENT
Consumer credit and lending
Issuer Fraud
Acquirer fraud
E-commerce
M-commerce
ATM and POS terminals
Cash Withdrawal vs. Card purchase
Governmental regulation and legislation
MARKET INDICATORS
Table 1 Number of POS Terminals 2004-2007
Table 2 Number of ATMs 2004-2007
Table 3 Disposable Income 2002-2007
Table 4 Consumer Credit 2002-2007
Table 5 Value Lost to Fraud 2002-2007
MARKET DATA
Table 6 Financial Cards: Transactions 2002-2007
Table 7 Financial Cards: Value 2002-2007
Table 8 Financial Cards: Number of Cards in Circulation 2002-2007
Table 9 Financial Cards: Number of Accounts 2002-2007
Table 10 Domestic versus Foreign Spend 2007
Table 11 Card Expenditure by Sector 2007
Table 12 Card Expenditure by Location 2007
Table 13 Financial Cards: Number of Internet Transactions 2002-2007
Table 14 Financial Cards: Internet Transaction Value 2002-2007
Table 15 Financial Cards: Number of Cards by Issuer 2002-2006
Table 16 Financial Cards: Number of Cards by Operator 2002-2006
Table 17 Financial Cards: Point of Sale Transactions by Acquirer 2002-2006
Table 18 Financial Cards Forecast: Transactions 2007-2012
Table 19 Financial Cards Forecast: Value 2007-2012
Table 20 Financial Cards Forecast: Number of Cards in Circulation 2007-2012
Table 21 Financial Cards: Forecast Number of Accounts 2007-2012
Table 22 Financial Cards Forecast: Number of Internet Transactions 2007-2012
Table 23 Financial Cards Forecast: Internet Transaction Value 2007-2012
DEFINITIONS
Cards by Type
Cardholder Behaviour
Card Expenditure by Sector
Value Lost to Card Fraud
Consumer Credit
Market Background
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - CHINA
BANK OF CHINA - FINANCIAL CARDS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Bank of China: Key Facts
Summary 3 Bank of China: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
CHINA MERCHANTS BANK - FINANCIAL CARDS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 China Merchants Bank: Key Facts
Summary 5 China Merchants Bank: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
CHINA UNIONPAY CO LTD - FINANCIAL CARDS - CHINA
STRATEGIC DIRECTION
Summary 6 China UnionPay: Key Facts
Summary 7 China UnionPay: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
INDUSTRIAL & COMMERCIAL BANK OF CHINA - FINANCIAL CARDS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Industrial & Commercial Bank of China: Key Facts
Summary 9 Industrial & Commercial Bank of China: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
WATCHDATA TECHNOLOGIES LTD - FINANCIAL CARDS - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Watchdata Technologies Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SMART CARDS IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 24 Smart Cards Sector Performance: 2002-2007
Table 25 Smart Cards Sector Performance: % Growth 2002-2007
Table 26 Smart Cards: Memory Vs Microprocessor 2004-2007
Table 27 Smart Cards: Contact Vs Contactless 2004-2007
Table 28 Smart Cards: Forecast Sector Performance: 2007-2012
Table 29 Smart Cards: Forecast Sector Performance: % Growth 2007-2012
ATM TRANSACTIONS IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 30 ATM Cards Sector Performance: 2002-2007
Table 31 ATM Cards Sector Performance: % Growth 2002-2007
Table 32 ATM Cards: Forecast Sector Performance: 2007-2012
Table 33 ATM Cards: Forecast Sector Performance: % Growth 2007-2012
DEBIT TRANSACTIONS IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 34 Debit Cards Sector Performance: 2002-2007
Table 35 Debit Cards Sector Performance: % Growth 2002-2007
Table 36 Debit Cards: Number of Cards by Issuer 2002-2006
Table 37 Debit Cards: Number of cards by Operator 2002-2006
Table 38 Debit Cards Transactions by Acquirer 2002-2006
Table 39 Debit Cards Transaction Value by Operator 2002-2006
Table 40 Debit Cards: Forecast Sector Performance: 2007-2012
Table 41 Debit Cards: Forecast Sector Performance: % Growth 2007-2012
CREDIT CARD TRANSACTIONS IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 42 Credit Cards Sector Performance: 2002-2007
Table 43 Credit Cards Sector Performance: % Growth 2002-2007
Table 44 Personal Credit Cards Sector Performance: 2002-2007
Table 45 Personal Credit Cards Sector Performance: % Growth 2002-2007
Table 46 Corporate Credit Cards: Sector Performance: 2002-2007
Table 47 Corporate Credit Cards: Sector Performance: % Growth 2002-2007
Table 48 Credit Cards: Number of Cards by Issuer 2002-2006
Table 49 Credit Cards: Number of cards by Operator 2002-2006
Table 50 Credit Cards Transactions by Acquirer 2002-2006
Table 51 Credit Cards Transaction Value by Operator 2002-2006
Table 52 Personal Credit Cards Transactions by Acquirer 2002-2006
Table 53 Personal Credit Cards Transaction Value by Operator 2002-2006
Table 54 Corporate Credit Cards Transactions by Acquirer 2002-2006
Table 55 Corporate Credit Cards Transaction Value by Operator 2002-2006
Table 56 Credit Cards: Forecast Sector Performance: 2007-2012
Table 57 Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 58 Personal Credit Cards: Forecast Sector Performance: 2007-2012
Table 59 Personal Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 60 Corporate Credit Cards: Forecast Sector Performance: 2007-2012
Table 61 Corporate Credit Cards: Forecast Sector Performance: % Growth 2007-2012
CHARGE CARD TRANSACTIONS IN CHINA
HEADLINES
TRENDS
PROSPECTS
PRE-PAID CARD TRANSACTIONS IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 62 Pre-paid Cards Sector Performance: 2002-2007
Table 63 Pre-paid Cards Sector Performance: % Growth 2002-2007
Table 64 Pre-paid Cards: Number of Cards by Issuer 2002-2006
Table 65 Pre-paid Cards: Number of cards by Operator 2002-2006
Table 66 Pre-paid Cards Transactions by Acquirer 2002-2006
Table 67 Pre-paid Cards Transaction Value by Operator 2002-2006
Table 68 Pre-paid Cards by Type 2004-2007
Table 69 Pre-paid Cards: Forecast Sector Performance: 2007-2012
Table 70 Pre-paid Cards: Forecast Sector Performance: % Growth 2007-2012
STORE CARD TRANSACTIONS IN CHINA
HEADLINES
TRENDS
PROSPECTS