The Cards and Payments Industry in China: Emerging Trends and Opportunities to 2020
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.
- 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.
Table of Contents
EXECUTIVE SUMMARY 2
1.1. Market overview 2
1.2. Key facts 3
1.3. Top five industry events 4
2. PAYMENT INSTRUMENTS 10
2.1. Current payment environment 10
3. E-COMMERCE AND ALTERNATIVE PAYMENTS 12
3.1. E-Commerce market analysis 12
3.2. Alternative payment solutions 14
3.2.1. Alipay 14
3.2.2. Tenpay 15
3.2.3. PayPal 15
3.2.4. Apple Pay 16
3.2.5. Samsung Pay 16
3.2.6. Huawei Pay 16
3.2.7. Mi Pay 17
3.2.8. QuickPass 17
3.2.9. Visa Checkout 17
3.2.10. MasterPass 17
4. REGULATIONS IN THE CARDS AND PAYMENTS INDUSTRY 18
4.1. Regulatory framework 18
4.1.1. CUPÂ’s payment guidelines 18
4.1.2. E-commerce regulation 20
4.2. Anti-money laundering 21
4.3. Foreign direct investment regulations 21
5. ANALYSIS OF CARDS AND PAYMENTS INDUSTRY DRIVERS 22
6. PAYMENT CARDS 25
7. DEBIT CARDS 27
7.1. Debit cards market analysis 27
7.2. Competition in the debit cards market 29
7.3. Debit cards comparison 30
8. PAY LATER CARDS 31
8.1. Pay later cards market analysis 31
8.2. Competition in the pay later cards market 33
8.3. Pay later cards comparison 35
9. PREPAID CARDS 37
10. APPENDIX 39
10.1. Abbreviations and acronyms 39
10.2. Supplementary data 40
10.3. Definitions 52
10.4. Common payment card features 53
10.5. Methodology 54
10.6. Bibliography 56
10.7. Further reading 56
List of Figures
Figure 1: China, Payment Instrument Shares by Transaction Value (%), 2012 vs 2016 10
Figure 2: China, Payment Instrument Shares by Transaction Volume (%), 2012 vs 2016 11
Figure 3: China, E-Commerce Value 12
Figure 4: China, Population and Economic Indicators 22
Figure 5: China, ATMs, POS Terminals and Household Consumption 23
Figure 6: China, Payment Cards Transaction Value and Cards in Circulation, 2012-2020 25
Figure 7: China, Debit Card Penetration and Turnover Per Card 27
Figure 8: China, Debit Cards Scheme and Issuer Transaction Value Share, 2016 29
Figure 9: China, Pay Later Card Penetration and Turnover Per Card 31
Figure 10: China, Pay Later Cards Scheme and Issuer Transaction Value Share, 2016 33
Figure 11: China, Prepaid Cards in Circulation and Transaction Value, 2012-2020 37
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.