Increasing Online Shoppers to Boost China’s Credit Card Market

According to our recent report, "China Credit Card Market Outlook to 2013", the growing number of online shoppers coupled with increasing availability of e-payment models are forecasted to boost up the credit card spending in China in near future.

Online shopping or e-commerce has emerged as the most preferred tool among retailers that helps them cut on costs while passing on the benefits to consumers in form of discounts and coupons. With this, the online shopping market is growing rapidly in China. 2008 ended with an estimated 80-90 Million online shoppers in China and the number continues to grow significantly. Increasing use of Internet at home and work will continue to fuel the future growth.

Online shoppers in the major urban areas are largely adopting electronic means of payment while purchasing goods online. Nearly one-third of the shoppers use electronic payment forms while purchasing goods over the Internet. "Among the electronic modes of payment, credit card accounts for not more than 15-20% of the payment transactions. This is because credit card use is still very underdeveloped in China; as many as 150 Million credit cards had been issued till the end of 2008," says an analyst at RNCOS.

There remains wider scope for further development of credit card industry in China as the penetration rate stands at just over 11% for an enormous population of over 1.3 Billion. However, the report adds that the growth in credit cards issuance in the country in 2009 is likely to get affected by the economic crisis. As China's main external markets plunge into recession and with shrinking export orders, layoffs have multiplied in the country's big manufacturing regions. This will potentially affect the growth rate of credit card issuance in 2009.

"China Credit Card Market Outlook to 2013" provides extensive research and rational analysis of the credit card industry in China. The report thoroughly examines the current industry trends which are adding to the growth of the Chinese credit card industry. Forecast in this research has been done with due consideration to the possible impact of recession on the industry, which reveals that the total number of credit cards in China will grow at a CAGR of more than 28% during 2009-2013.

For more information visit: http://www.rncos.com/Report/IM002.htm