The Credit Card Market in China: Opportunities for Foreign Firms

Publisher Name :
Date: 01-Jan-2013
No. of pages: 96
Inquire Before Buying

The credit card market in China has been growing at double-digit rates since the early 1990s and has boomed since 2003. China became the world's second largest credit card market (after the U.S.) in 2012 in terms of number of cards issued and transaction volume, and is expected to become the world's largest credit card market by the year 2020.

Being highly policy-driven, the Chinese credit card market is largely directed by political calculation, policy mission and administrative intervention. Even though economic and social factors play a vital role, government regulations and policies control or strongly influence the competitive landscape, the credit card ecosystem and the industry income structure. Foreign companies must recognize that government regulators are working on a course of regulation that is oriented toward supporting state-owned and domestic Chinese enterprises.

Even so, the Chinese credit card market will continue to be the most promising market worldwide due to the size of the national economy and population. And the relative slow-down of the Chinese economy will have a limited impact on the market given the huge scale of business opportunity and the tight control of credit risks by the central bank. Packaged Facts predicts that market growth in 2012 and 2013 will notch downward due to card migration and risk control concerns, but will pick up again from 2014 onward due to the growing customer base and developing mobile and internet payment business.

Differentiation of positioning based on brand image, promotional strategy and strategic vision is critical to success in this market. Big name foreign firms are attractive to middle- and upper-class Chinese customers, whom foreign companies can target through high-quality and exclusive services. In addition, younger adults are forming a new generation of consumers who are more technologically- and innovation-driven when it comes to choosing credit cards, such that the most technologically advanced companies will be best positioned to perform in this market.

At the same time, the payment processing market is going through a revolution in China with the introduction of third-party payments. New competitors are entering into the market and sharing profits from card payment companies and banks. Alliances and the competitive landscape have been transformed, and payment companies will need to reconsider their positioning and partnership strategy in this market.

The Credit Card Market in China: Opportunities for Foreign Firms

Table Of Contents

Chapter 1: Executive Summary
Emergence of Market
Table 1-1: Selected Credit Card Industry Statistics, 2011
Figure 1-1: Development Phase of Chinese Credit Card Market, 2000-2011
Key Consumer Statistics
Figure 1-2: Consumer Survey: Which credit cards do you have currently?
Figure 1-3: Consumer Survey: Which one is your major credit card?
Banking Industry Overview
Figure 1-4: Market Share by Capital in Chinese Banking Industry, 2003-2011
Foreign Banks in China
Top Chinese Players in Credit Card Market.
Figure 1-5: Top 15 Banks in Chinese Credit Card Market by Transaction Volume (in billions) and Credit Cards in Circulation (in millions), 2011
Key Performance Indexes (KPIs) of Chinese Competitors
Table 1-2: Key Performance Index of Top 15 Chinese Banks, 2011 (%)
Income Structure of Chinese Bank Credit Card Businesses
Table 1-3: Credit Card Charges and Rewards in U.S. and China
Key Financial Data for China Union Pay
Foreign Bank Credit Card Business Models
Table 1-4: Foreign-Chinese Banks' Credit Card Alliance List Foreign Card Payment Companies
Figure 1-6: Market Shares by Payment Company Brands, 2011
Table 1-5: Key Chinese Market Statistics for Foreign Credit Card Companies
In the Wake of Visa/CUP Dispute
Market Trends
Market Forecast
Figure 1-7: Chinese Credit Card Market Forecast, 2012-2016
Recommendations for Foreign Credit Card Issuers
Recommendation for Foreign Card Payment Companies

Chapter 2: Market Overview
Market Background
China Emerges as Second-Largest Credit Card Market
An Imbalanced Market
Figure 2-1: Household Consumption as % of GDP, 1980-2009
Table 2-1: Selected Credit Card Industry Statistics, 2011
China Union Pay and Its Competitors
Figure 2-2: Global Market Share by Transaction Volume of Credit Card Network, 2011
Figure 2-3: Global Market Share by Credit Cards in Circulation, 2011
Historical Development of Chinese Credit Card Market
Figure 2-4: China Demographic Map with a Comparable GDP
Figure 2-5: Development Phase of Chinese Credit Card Market,2000-2011
Development of China Union Pay
The State of the Market
Regulatory Environment: The Market Is Opening Up to Non-Banks
Preconditions for credit card business operation
Constraints on business processing outsourcing
Regulation of interest rates and lines of credit
Regulation of related markets
Policies on the way
Economic Growth and Urbanization Fuel Market
Infrastructure: Rapid Improvement in POS and ATM Penetration
Figure 2-6: Credit Card Infrastructures of U.S. and China, 2011
Industry Performance: Emphasis Shifts to Risk and Profit Management
Figure 2-7: Credit Card Income Structure of U.S. and China, 2011
Key Consumer Statistics
Figure 2-8: Consumer Survey: Which credit cards do you have currently?
Figure 2-9: Consumer Survey: Which one is your major credit card?
Cultural Factors: Wariness over Borrowing and Fees

Chapter 3: Competitor Landscape
Banking Industry Overview
Figure 3-1: Market Share by Capital in Chinese Banking Industry,2003-2011
Figure 3-2: Top 15 Chinese Banks by Assets, 2011 ($M)
Figure 3-3: Net Income: Retail Banking Proportion of Top 15 Chinese Retail Banks, First Half 2012 ($M)
Foreign Banks in China
Table 3-1: Top Ten Foreign Banks in China by Assets, 2011
Chinese Bank Credit Card Business Models
Top Chinese Players in Credit Card Market
Figure 3-4: Top 15 Banks in Chinese Credit Card Market by Transaction Volume (in billions) and Credit Cards in Circulation (in millions), 2011
Key Performance Indexes (KPIs) for Chinese Banks as Credit Card Players
Table 3-2: Key Performance Index of Top 15 Chinese Banks, 2011 (%)
Income Structure for Chinese Bank Credit Card Businesses
Table 3-3: Credit Card Charges and Rewards in U.S. and China
Key Financial Data for China Union Pay
Foreign Bank Credit Card Business Models
Table 3-4: Foreign-Chinese Banks' Credit Card Alliance List
Foreign Card Payment Companies
Performance: MasterCard Is Catching Up with Visa in International Cards
Figure 3-5: Market Shares by Payment Company Brands, 2009
Figure 3-6: Market Shares by Payment Company Brands, 2011
Table 3-5: Key Chinese Market Statistics for Foreign Credit Card Companies
In the Wake of Visa/CUP Dispute
New Initiatives in Online and Mobile Payments
Profiles of Foreign Bank Credit Card Businesses
Citi Bank
Background of Citi China
Investment in China
Co-branded Credit Card with SPDB
Citi Credit Card
Strengths
Weaknesses
Opportunities
Threats
Bank of East China (BEA)
Background of BEA China
Alliance with Chinese Banks
BEA Credit Card Business
Strengths
Weaknesses
Opportunities
Threats
Hangseng and CIB
Background of Hangseng China
Background of China Industrial Bank
Cooperation Model in Credit Cards
Strengths
Weaknesses
Opportunities
Threats
HSBC and BOCOM
Background of HSBC China
Background of Bank of Communication
Cooperation Model
Strengths
Weaknesses
Opportunities
Threats
Deutsche Bank and Hua Xia Bank
Background of Deutsche China
Background of Hua Xia Bank
Cooperation Model in Credit Cards
Strengths
Weaknesses
Opportunities
Threats
Bank of America and China Construction Bank
Background of BofA China
Background of CCB
Cooperation Model
Strengths
Weaknesses
Opportunities
Threats
American Express and Industrial & Commercial Bank of China
Background of Amex China
Background of ICBC
Cooperation Model
Strengths
Weaknesses
Opportunities
Threats
Royal Bank of Scotland and Bank of China
Cooperation Model
Dissolution of the Alliance

Chapter 4: Emerging Market Dynamics and Trends
New Competitive Dynamics
Threats from New Entrants
Regulatory Environment: Foreign Invested Companies
Rarely Acquire a License
Vendor Activities: New Alliances Are Forming
Impact of New Entrants: Acquiring Bank Markets Are Getting Crowded
Impact of Migration to IC Cards: CUP Is Crowding Out Rivals
Regulatory Environment: Only CUP Has Mastered New ICStandard
Vendor Activities: CUP Promotes New Technology Enabled Cards Overseas
Impact on Market: Dual-currency Credit Cards Will Be Phased Out
Mobile Payments: Banks and Payment Companies Must Position Themselves Effectively in the New Ecosystem
Regulatory Environment: CUP Wins on the Standard Again
Vendor Activities The Fight Over Mobile Payments
Impacts on Market Jockeying for the Right Role in Mobile Payments
Credit Card Rates: Regulators Are Lowering Rates to Protect Consumers and Retailers
Regulatory Environment: Final Rate Decrease Plan Remains To Be Decided
Vendors Activities: Cash-out Rate Lowered by Some Major Banks
Impact on Market: Credit Card Profits Will Decrease by 15% to 25%
Market Trends
Market Forecast
Figure 4-1: Chinese Credit Card Market Forecast, 2012-2016

Chapter 5: Recommendations for Foreign Firms Credit Card Issuers
Conclusions: This Is a Difficult but Worthwhile Market
Recommendations: Prepare for a Longer ROI Period and Differentiate Your Positioning
Card Payment Companies
Conclusions: A Major Breakthrough Seems Imminent
Recommendations: Be Patient and Prepare for Third-Party Payment Processor Licenses

  • Siemens Adds To the Growth of Wind Power Generation Market
    Siemens has been presenting ground-breaking strategies and pioneering solutions for energy generation for an intelligent power supply globally. With an expansive portfolio and wide-ranging proficiency in wind power generation, Siemens is likely to aid in increasing the share of wind power in the US energy mix. With New Mexico’s vicinity to significant wind energy areas, [...]
  • Global Public Safety LTE Ecosystem Overview
    In view of its flourishing ecosystem, spectrum flexibility and performance metrics, LTE has emerged as the leading candidate for public safety mobile broadband networks. Public safety organizations and establishments have already begun planning to advance their networks to LTE-based public safety solutions. LTE provisions a varied range of services, from high bandwidth data services to [...]
  • RnR Market Research: Biochips Market Insights
    Growing R&D investment and subcontracting of pharmaceutical companies would lead to growth in biochips market in Asia along with an increase in the application of biochips products is estimated to improve opportunity for the global biochip market. Conversely, the high cost involved in manufacturing of biochips can be seen as a challenge for the same. [...]
  • Current State of Blood Banking Market, Products, Technologies and Services
    The global blood banking and blood products market is expected to reach US$41.9 billion by 2020 with USA continuing to be the largest market worldwide. Asia-Pacific follows a close second with a projected CAGR of 9.1% during this period owing to the refining healthcare infrastructure and increase in the per capita healthcare expenditure. The major [...]
  • Surgical Robots Market 2016 Updates on Companies, Products and More
    Surgical robots are medical devices that assist surgeons in performing many types of complex procedures with more accuracy, flexibility and control than is possible with conventional techniques. The aim of surgical robots market players is to provide improved diagnostic skills, a less invasive and more comfortable experience for the patient, and the ability to do [...]
  • The Cards and Payments Industry in Ireland: Emerging Trends and Opportunities to 2020
    Published: 22-Jul-2016        Price: US 2750 Onwards        Pages: 57
    Synopsis Timetric's 'The Cards and Payments Industry in Ireland: Emerging Trends and Opportunities to 2020' report provides detailed analysis of market trends in the Irish cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including check payments, payment cards, cash transactions, direct debits and credit transfers during the review period (2011-2015). The report also analyzes various paymen......
  • The Cards and Payments Industry in Norway: Emerging Trends and Opportunities to 2020
    Published: 14-Jul-2016        Price: US 2750 Onwards        Pages: 61
    Synopsis Timetric's 'The Cards and Payments Industry in Norway: Emerging Trends and Opportunities to 2020' report provides detailed analysis of market trends in the Norwegian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including check payments, payment cards, cash transactions, direct debits and credit transfers during the review period (2011-2015). The report also analyzes various pay......
  • The Cards and Payments Industry in Sweden: Emerging Trends and Opportunities to 2020
    Published: 30-Jun-2016        Price: US 2750 Onwards        Pages: 63
    Synopsis Timetric's 'The Cards and Payments Industry in Sweden: Emerging Trends and Opportunities to 2020' report provides detailed analysis of market trends in the Swedish cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including check payments, payment cards, cash transactions, direct debits and credit transfers during the review period (2011-2015). The report also analyzes various payme......
  • The Cards and Payments Industry in Saudi Arabia: Emerging Trends and Opportunities to 2020
    Published: 30-Jun-2016        Price: US 2750 Onwards        Pages: 65
    Synopsis Timetric's 'The Cards and Payments Industry in Saudi Arabia: Emerging Trends and Opportunities to 2020' report provides detailed analysis of market trends in the Saudi Arabian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including check payments, payment cards, cash transactions, direct debits and credit transfers during the review period (2011-2015). The report also analyzes v......
  • The Cards and Payments Industry in Greece: Emerging Trends and Opportunities to 2020
    Published: 28-Jun-2016        Price: US 2750 Onwards        Pages: 58
    Synopsis Timetric's 'The Cards and Payments Industry in Greece: Emerging Trends and Opportunities to 2020' report provides detailed analysis of market trends in the Greek cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including check payments, credit transfers, direct debits, payment cards and cash transactions during the review period (2011-2015). The report also analyzes various payment......
  • The Cards and Payments Industry in Peru: Emerging Trends and Opportunities to 2020
    Published: 17-Jun-2016        Price: US 2750 Onwards        Pages: 52
    Synopsis Timetric's 'The Cards and Payments Industry in Peru: Emerging Trends and Opportunities to 2020' report provides detailed analysis of market trends in the Peruvian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including check payments, payment cards, direct debits and credit transfers during the review period (2011-2015). The report also analyzes various payment card markets oper......
  • United States Credit/Debit Payment Card Industry 2016 Market Research Report
    Published: 17-Jun-2016        Price: US 3800 Onwards        Pages: 137
    The United States Credit/Debit Payment Card Industry 2016 Market Research Report is a professional and in-depth study on the current state of the Credit/Debit Payment Card industry. The report provides a basic overview of the industry including definitions, classifications, applications and industry chain structure. The Credit/Debit Payment Card market analysis is provided for the United States markets including development trends, competitive landscape analysis, and key region......
  • The Cards and Payments Industry in Iran: Emerging Trends and Opportunities to 2020
    Published: 16-Jun-2016        Price: US 2750 Onwards        Pages: 47
    Synopsis Timetric's 'The Cards and Payments Industry in Iran: Emerging Trends and Opportunities to 2020' report provides detailed analysis of market trends in the Iranian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including check payments and payment cards during the review period (2011-2015). The report also analyzes various payment card markets operating in the industry, and provide......
  • The Cards and Payments Industry in Slovenia: Emerging Trends and Opportunities to 2020
    Published: 15-Jun-2016        Price: US 2750 Onwards        Pages: 55
    Synopsis Timetric's 'The Cards and Payments Industry in Slovenia: Emerging Trends and Opportunities to 2020' report provides detailed analysis of market trends in the Slovenian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including check payments, payment cards, cash transactions, direct debits and credit transfers during the review period (2011-2015). The report also analyzes various p......
  • SERVICES
    Value for Money
    We believe in "optimum utilization of available budget and resources". While servicing our clients' (your) market research requirements, we keep the same approach in focus to help you get the best value for your $$s.
    Ever Growing Inventory
    Ranging from the smallest feasible / required data (datasheets, data facts, SWOT analysis, company profiles, etc) to full research reports that help you make decisions, our inventory is updated almost on a daily basis with the latest industry reports from domain experts that track more than 5000 niche sectors.
    One Stop Solution
    Need a custom research report on medical devices market? Require all available business intelligence on 3D printing industry? Exploring F&B sector of a particular country/region? RnRMarketResearch.com is your one-stop-solution to all market intelligence needs. We not only offer custom research and consulting services, we also "bundle" reports to meet your needs and help you fetch the data analysis you require for your business.
    Dedicated Client Engagement
    Not limited to only "finding" relevant reports for you, our client engagement team dedicates its efforts to understand your "business need" and accordingly maps available research data to help you move forward. Call "your" client engagement executive any time of your day and get your questions answered in order to make the correct business decision.
    Saving Time and Efforts
    Simply share your research requirement details with us and let us do all the hard work to find required intelligence for you. When you add up our "one stop solution" and "dedicated client engagement" services mentioned above, you obviously know the time and effort saving you do by working with us.
    Payment Flexibility
    Working with Fortune 500 organizations, we understand the importance of being flexible for payments. Share your payment terms with us and we will surely match up to them to ensure you get access to required business intelligence data without having to wait for the payment to be done.
    Post-Purchase Research Support
    Have questions after reading a report / datasheet bought through us? Not sure about the methodology used for data available in the research? Talk to us / Share your questions with us and if required, we will connect you with the analyst(s)/author(s) of the report(s) and ensure you get satisfactory answers for the same. Need more data / analysis / report(s) on the topic of your research/project? The RnRMarketResearch.com team is here for you 24X7 to support you with your post-purchase requirements. Subscription Offers & Packages (Get in touch with us for more details - sales@rnrmarketresearch.com / +1 888 391 5441 )
    • Ad Hoc
    • Pay - as - you - go / Bucket Subscriptions
    • Fixed Cost for #of reports
    • Customize / Personalize as per your needs