The Cards and Payments Industry in China: Emerging Trends and Opportunities to 2020

The Cards and Payments Industry in China: Emerging Trends and Opportunities to 2020

Summary

GlobalData’s The Cards and Payments Industry in China: Emerging Trends and Opportunities to 2020 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 credit transfers, cash transactions, checks and payment cards. It also, includes an overview of the country's key alternative payment instruments.
  • E-commerce market analysis and payment methods.
  • 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.
  • Comprehensive analysis of consumer attitudes and buying preferences for cards.
  • The competitive landscape in the Chinese cards and payments industry.
This 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 credit transfers, check payments, payment cards and cash transactions during the review period (2012-2016).

The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, and transaction values and volumes during the review period and over the forecast period (2016-2020). It also offers information on the country's competitive landscape, including the 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 details of regulatory policy and recent changes in the regulatory structure.

The Chinese credit cards market is expected to attract more foreign competitors, as in June 2016, the central bank - People's Bank of China formally opened its credit card clearing market for foreign companies. The rules issued by the central bank and the China Banking Regulatory Commission require foreign companies to comply with national security and cybersecurity standards, and be locally based. The move, which ends CUP’s monopoly, was a result of long-standing demand for international scheme providers - particularly Mastercard and Visa.

In a bid to boost competition in the credit cards market, the central bank relaxed credit card lending rates in April 2016. Effective from January 2017, the new rule allows banks to offer up to a 30% discount on the credit card lending rate. In order to give banks autonomy to set their own terms, the central bank has also decided to eliminate unified rules on banks' interest-free period and minimum monthly repayments. Prior to the regulation, the lending rate was fixed at 0.05% per day; the interest free period can run up to 60 days, while the minimum monthly payment is at least 10% of the monthly bills. The new rule also allows banks to decide whether and how much to charge cardholders for delays in payments.

The cap on merchant service charges on card transactions was introduced in September 2016. According to the National Development and Reform Commission (NDRC) and the central bank, merchant service charges for debit cards are capped at 0.35%, while on credit cards it set as 0.45%. Prior to this new policy, banks could charge a maximum of 0.9% on card payments. With a reduction in revenue, card issuers are likely to cut card benefits for consumers, and instead look at new ways to generate revenue.

Scope
  • This report provides a comprehensive analysis of the Chinese cards and payments industry.
  • It provides current values for the Chinese cards and payments industry for 2016, and forecast figures to 2020.
  • It details the different demographic, economic, infrastructural and business drivers affecting the Chinese cards and payments industry.
  • It outlines the current regulatory framework in the industry.
  • It details marketing strategies used by various banks and other institutions.
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.


  • Executive Summary
    • Market overview
    • Key facts
      • Table China, Key Facts, 2016
      • Table China, Regional Benchmarking of Payment Cards, 2016
    • Top five industry events
  • Payment Instruments
    • Current payment environment
      • Table Figure 1: China, Payment Instrument Shares by Transaction Value (%), 2012 vs 2016
      • Table Figure 2: China, Payment Instrument Shares by Transaction Volume (%), 2012 vs 2016
  • E-Commerce and Alternative Payments
    • E-Commerce market analysis
      • Table Figure 3: China, E-Commerce Value
    • Alternative payment solutions
      • Alipay
      • Tenpay
      • PayPal
      • Apple Pay
      • Samsung Pay
      • Huawei Pay
      • Mi Pay
      • QuickPass
      • Visa Checkout
      • MasterPass
  • Regulations in the Cards and Payments Industry
    • Regulatory framework
      • CUP's payment guidelines
      • E-commerce regulation
    • Anti-money laundering
    • Foreign direct investment regulations
      • Table China, Mode of Entry of Foreign Banks
  • Analysis of Cards and Payments Industry Drivers
    • Table Figure 4: China, Population and Economic Indicators
    • Table Figure 5: China, ATMs, POS Terminals and Household Consumption
  • Payment Cards
    • Table Figure 6: China, Payment Cards Transaction Value and Cards in Circulation, 2012-2020
  • Debit Cards
    • Debit cards market analysis
      • Table Figure 7: China, Debit Card Penetration and Turnover Per Card
    • Competition in the debit cards market
      • Table Figure 8: China, Debit Cards Scheme and Issuer Transaction Value Share, 2016
    • Debit cards comparison
      • Table China, Debit Cards Comparison and Key Features, 2016
  • Pay Later Cards
    • Pay later cards market analysis
      • Table Figure 9: China, Pay Later Card Penetration and Turnover Per Card
    • Competition in the pay later cards market
      • Table Figure 10: China, Pay Later Cards Scheme and Issuer Transaction Value Share, 2016
    • Pay later cards comparison
      • Table China, Gold Credit Cards Comparison and Key Features, 2016
      • Table China, Premium Credit Cards Comparison and Key Features, 2016
      • Table China, Charge Cards Comparison and Key Features, 2016
  • Prepaid Cards
    • Table Figure 11: China, Prepaid Cards in Circulation and Transaction Value, 2012-2020
  • Appendix
    • Abbreviations and acronyms
    • Supplementary data
      • Table China, Payment Instrument Transaction Values (CNY Trillion), 2012-2016
      • Table China, Payment Instrument Transaction Values (US$ Trillion), 2012-2016
      • Table China, Payment Instrument Transaction Volumes (Billion), 2012-2016
      • Table China, Payment Cards in Circulation by Type (Million), 2012-2020
      • Table China, Volume of Payment Card Transactions (Million), 2012-2020
      • Table China, Value of Payment Card Transactions (CNY Billion), 2012-2020
      • Table China, Value of Payment Card Transactions (US$ Billion), 2012-2020
      • Table China, Debit Cards in Circulation (Billion), 2012-2020
      • Table China, Debit Card Transaction Volumes, 2012-2020
      • Table China, Debit Card Transaction Values (CNY), 2012-2020
      • Table China, Debit Card Transaction Values (US$), 2012-2020
      • Table China, Debit Cards in Circulation by Scheme (Billion), 2012-2016
      • Table China, Debit Card Transaction Values by Scheme (CNY Trillion), 2012-2016
      • Table China, Debit Card Transaction Values by Scheme (US$ Trillion), 2012-2016
      • Table China, Debit Card Transaction Values by Issuer (CNY Billion), 2012-2016
      • Table China, Debit Card Transaction Values by Issuer (US$ Billion), 2012-2016
      • Table China, Pay Later Cards in Circulation (Million), 2012-2020
      • Table China, Pay Later Card Transaction Volumes, 2012-2020
      • Table China, Pay Later Card Transaction Values (CNY), 2012-2020
      • Table China, Pay Later Card Transaction Values (US$), 2012-2020
      • Table China, Pay Later Cards in Circulation by Scheme (Million), 2012-2016
      • Table China, Pay Later Card Transaction Values by Scheme (CNY Trillion), 2012-2016
      • Table China, Pay Later Card Transaction Values by Scheme (US$ Trillion), 2012-2016
      • Table China, Pay Later Card Transaction Values by Issuer (CNY Billion), 2012-2016
      • Table China, Pay Later Card Transaction Values by Issuer (US$ Billion), 2012-2016
      • Table China, Credit Cards in Circulation (Million), 2012-2020
      • Table China, Credit Card Transaction Volumes, 2012-2020
      • Table China, Credit Card Transaction Values (CNY), 2012-2020
      • Table China, Credit Card Transaction Values (US$), 2012-2020
      • Table China, Credit Cards in Circulation by Scheme (Million), 2012-2016
      • Table China, Credit Card Transaction Values by Scheme (CNY Trillion), 2012-2016
      • Table China, Credit Card Transaction Values by Scheme (US$ Trillion), 2012-2016
      • Table China, Charge Cards in Circulation (Million), 2012-2020
      • Table China, Charge Card Transaction Volumes, 2012-2020
      • Table China, Charge Card Transaction Values (CNY), 2012-2020
      • Table China, Charge Card Transaction Values (US$), 2012-2020
      • Table China, Charge Cards in Circulation by Scheme (Million), 2012-2016
      • Table China, Charge Card Transaction Values by Scheme (CNY Billion), 2012-2016
      • Table China, Charge Card Transaction Values by Scheme (US$ Billion), 2012-2016
      • Table China, Prepaid Cards in Circulation (Million), 2012-2020
      • Table China, Prepaid Card Transaction Values (CNY Billion), 2012-2020
      • Table China, Prepaid Card Transaction Values (US$ Billion), 2012-2020
    • Definitions
      • Table Definitions of Commonly Used Terms
    • Common payment card features
      • Table Common Features of Payment Cards
    • Methodology
    • Bibliography
    • Further reading

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