Market Research Report
The Cards and Payments Industry in China: Emerging Trends and Opportunities to 2020
|Published by||GlobalData||Product code||294174|
|Published||Content info||58 Pages
|The Cards and Payments Industry in China: Emerging Trends and Opportunities to 2020|
|Published: March 14, 2017||Content info: 58 Pages||
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 -
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.