According to our research report, “China Credit Card Market Outlook to 2013”, the Chinese payment card industry, like all the various sectors of the economy has undergone through a revolutionary change, indicating explosive growth over the past few years. The nation is promoting non-cash payment alternatives, like credit cards including overdrafts to increase the domestic consumption. Besides, banks are also promoting credit cards to augment revenue. Plastic money (bank cards) is anticipated to be the second most attractive retail credit business for lenders, following individual mortgages.
Anticipating the current market scenario and its true potential, our industry analysis reveals that, the total number of credit cards in China will grow at a CAGR of around 31% during 2011-2014. Growth will be attributed to low penetration rate and the government initiatives to increase consumer spending through bank cards to reduce tax complications. It is further anticipated that, this growth could help the credit card market to become the second most attractive retail banking product after mortgages during the consequent few years.
However, this increase in credit card usage follows strong marketing by banks, like the Industrial and Commercial Bank of China (ICBC), the nation's largest state-controlled commercial lender. However, foreign bank card firms are excluded from offering local-currency services in China, whereas state-backed China UnionPay is the dominating processor and operates the single bank card network in the nation. China is expected to exceed the US to become the top credit card market globally, in terms of number of cards during the next decade, as increasing wealth and urbanization will allow Chinese consumers to spend more through plastic money.
The report provides an extensive research and rational analysis along with reliable statistics of the credit card market in the country. It offers a detail study of the forces driving the industry and discusses key market trends prevailing in the industry, making China a potential market for credit cards. It also provides information (analysis and statistical data) of various industrial parameters that will help clients to analyze opportunities critical for their success in the China Credit Card industry.