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Chinas Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

Published By :

Timetric

Published Date : Jan 2014

Category :

Banking

No. of Pages : 105 Pages


Synopsis

The report provides top-level market analysis, information and insights on China’s cards and payments industry, including:

  • Current and forecast values for each category of China’s cards and payments industry, including debit cards, credit cards, prepaid cards and charge cards
  • Comprehensive analysis of the industry’s market attractiveness and future growth areas
  • Analysis of various market drivers and regulations governing China’s cards and payments industry
  • Detailed analysis of the marketing strategies adopted for selling debit, credit, charge and prepaid cards used by various bankers and other institutions in the market
  • Comprehensive analysis of consumer attitudes and buying preferences for cards
  • The competitive landscape of China’s cards and payments industry

Executive summary

During the review period (2008–2012), the Chinese card payments channel registered a CAGR of 18.42%, representing 3.9 billion cards in circulation in 2012. The channel is expected to post a forecast-period (2013–2017) CAGR of 8.06% to reach 6.1 billion cards in circulation by 2017. Changing lifestyle demographics, the popularity of online shopping and higher disposable incomes per capita supported the growth of the volume of cards in circulation. The Chinese card payments channel grew substantially both in volume and value terms during the review period. In terms of number of cards in circulation, the channel grew at a robust pace from 2.0 billion cards in 2008 to 3.9 billion cards in 2012, at a CAGR of 18.42%. Debit card category remained the largest category accounted for 82.3% of the category market share in 2012 and recorded a CAGR of 17.89% during the review period. Over the forecast period, total card volume is expected to grow at a CAGR of 8.06% to reach 6.1 billion cards by the end of 2017. In terms of transactions value, the Chinese card payments channel grew CNY9.6 trillion (US$1.4 trillion) in 2008 to CNY36.9 trillion (US$5.8 trillion) in 2012, at a CAGR of 40.15%. It is expected to grow at a CAGR of 13.96% over the forecast period from CNY46.0 trillion (US$7.3 trillion) in 2013 to CNY77.5 trillion (US$12.2 trillion) in 2017.

Scope

This report provides a comprehensive analysis of China’s cards and payments industry.

  • It provides the current values for China’s cards and payments industry for 2012, and forecast figures for 2017.
  • It details the different economic, infrastructural, consumer and business drivers affecting China’s cards and payments industry.
  • It outlines the current regulatory framework in the industry.
  • It details the marketing strategies used by various banks and other institutions.
  • It profiles the major banks in China’s cards and payments industry.

Reasons to buy

  • Make strategic business decisions using top-level historic and forecast market data related to China’s cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities within China’s cards and payments industry.
  • Assess the competitive dynamics in China’s cards and payments industry.
  • Gain insights into the marketing strategies used for selling various card types in China.
  • Gain insights into key regulations governing China’s cards and payment industry.

Key highlights

  • The Chinese card payments channel grew substantially both in volume and value terms during the review period. In terms of number of cards in circulation, the channel grew at a robust pace from 2.0 billion cards in 2008 to 3.9 billion cards in 2012, at a CAGR of 18.42%. Debit cards remained the largest category, accounting for 82.3% of the channel in 2012 and recording a CAGR of 17.89% during the review period. Over the forecast period, total card volume is expected to grow at a CAGR of 8.06% to reach 6.1 billion cards by the end of 2017.
  • Changing lifestyle demographics, the popularity of online shopping and higher disposable incomes per capita supported the growth of the volume of cards in circulation.
  • China has an established online-commerce infrastructure. Domestic sites such as Taobao, tuan800 and 360 buy have outperformed international competitors such as ebay and Amazon. High internet penetration rates and the availability of online payment infrastructure have encouraged consumers to spend online.
  • The Chinese credit card category is expected to attract more foreign competitors over the forecast period. Foreign banks were not permitted to issue their own credit cards until 2012, and could only circulate co-branded cards in collaboration with a Chinese counterpart. However, Citibank has been granted the first stand-alone license to deal credit cards in the Chinese market. Foreign banks will have to apply to, and be approved by, the regulatory authorities if they wish to do the same.
Table of contents

1 Executive Summary

2 Analysis of Industry Environment, Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technologies
2.1.1 ATMs
2.1.2 POS terminals
2.1.3 Enhanced security measures on card products
2.1.4 Internet penetration
2.1.5 Network related drivers
2.2 Business Drivers
2.2.1 Growth of remittances
2.2.2 Retail sector dynamics
2.2.3 Growth of gift cards and closed-loop cards
2.2.4 Online commerce growth
2.2.5 Growth of luxury expenditure
2.3 Economic Drivers
2.3.1 GDP
2.3.2 GDP per capita
2.3.3 Low unemployment rate

3 Cards and Payments Industry Share Analysis
3.1 Overview of the Cards and Payments Industry
3.1.1 Cash
3.1.2 Checks
3.1.3 Card payments
3.1.4 Credit transfer

4 Regulatory Framework and Card Fraud Statistics
4.1 Regulatory Framework
4.1.1 CUP’s payment guidelines
4.1.2 Anti-money laundering regulations legislation
4.1.3 Foreign direct investment (FDI) regulations
4.2 Card Fraud Statistics
4.2.1 Card-not-present fraud
4.2.2 Counterfeit cards
4.2.3 Cards lost or stolen
4.2.4 Card ID theft

5 Emerging Consumer Attitudes and Trends
5.1 Industry Segmentation and Targeting
5.1.1 Retail segment
5.1.2 Corporate segment
5.2 Travel and Tourism Spending
5.2.1 Outbound tourist volume
5.2.2 Outbound tourist spending
5.3 Retail Card Spending
5.3.1 Analysis by product categories
5.3.2 Analysis by retail channels

6 Analysis of Card Payments Channel and Growth Prospects
6.1 Channel Share Analysis by Card Category
6.2 Size and Forecast of the Card Payments Channel
6.2.1 Analysis by number of cards in circulation
6.2.2 Analysis by transaction value

7 Analysis of Credit Card Payments and Growth Prospects
7.1 Overall Category Size and Forecast
7.1.1 Analysis by volume of cards in circulation
7.1.2 Analysis by transaction value
7.1.3 Analysis by transaction volume
7.2 Transaction Share Analysis by Channel
7.2.1 Analysis by transaction value
7.2.2 Analysis by transaction volume
7.3 Personal Credit Cards Size and Forecast
7.3.1 Analysis by volume of cards in circulation
7.3.2 Analysis by transaction value
7.3.3 Analysis by transaction volume
7.4 Commercial Credit Cards Sub-Category Size and Forecast
7.4.1 Analysis by number of cards in circulation
7.4.2 Analysis by transaction value
7.4.3 Analysis by transaction volume
7.5 Competitive Landscape
7.5.1 Scheme share analysis
7.5.2 Issuer share analysis

8 Analysis of Debit Card Payments and Growth Prospects
8.1 Overall Category Size and Forecast
8.1.1 Analysis by number of cards in circulation
8.1.2 Analysis by transaction value
8.1.3 Analysis by transaction volume
8.2 Transaction Share Analysis by Channel
8.2.1 Analysis by transaction value
8.2.2 Analysis by transaction volume
8.3 Competitive Landscape
8.3.1 Scheme share analysis
8.3.2 Issuer share analysis

9 Analysis of Charge Card Payments and Growth Prospects
9.1 Overall Category Size and Forecast
9.1.1 Analysis by number of cards in circulation
9.1.2 Analysis by transaction value
9.1.3 Analysis by transaction volume
9.2 Transaction Share Analysis by Channel
9.2.1 Analysis by transaction value
9.2.2 Analysis by transaction volume
9.3 Personal Charge Cards Segment Size and Forecast
9.3.1 Analysis by number of cards in circulation
9.3.2 Analysis by transaction value
9.3.3 Analysis by transaction volume
9.4 Commercial Charge Cards Sub-Category Size and Forecast
9.4.1 Analysis by volume of cards in circulation
9.4.2 Analysis by transaction value
9.4.3 Analysis by transaction volume
9.5 Competitive Landscape
9.5.1 Scheme share analysis

10 Analysis of Prepaid Card Payments and Growth Prospects
10.1 Overall Category Size and Forecast
10.1.1 Analysis by number of cards in circulation
10.1.2 Analysis by transaction value
10.2 Open-Loop Prepaid Cards Segment Size and Forecast
10.2.1 Analysis by number of cards in circulation
10.2.2 Analysis by transaction value
10.3 Closed-Loop Prepaid Cards Segment Size and Forecast
10.3.1 Analysis by number of cards in circulation
10.3.2 Analysis by transaction value

11 Merchant Acquiring
11.1 Merchant Acquirers

12 Company Profiles of Card Issuers
12.1 Shanghai Rural Commercial Bank (SRCB)
12.1.1 Key financials
12.1.2 Card portfolio
12.1.3 Strategies
12.2 Bank of China (BOC)
12.2.1 Key financials
12.2.2 Card portfolio
12.2.3 Strategies
12.3 Industrial and Commercial Bank of China Limited (ICBC)
12.3.1 Key financials
12.3.2 Card portfolio
12.3.3 Strategies
12.4 Agricultural Bank of China
12.4.1 Key financials
12.4.2 Card portfolio
12.4.3 Strategies
12.5 Citibank (China) Co., Ltd
12.5.1 Key financials
12.5.2 Card portfolio
12.5.3 Strategies

13 Appendix
13.1 Methodology
13.2 Contact Timetric
13.3 About Timetric
13.4 Timetric’s Services
13.5 Definitions
13.6 Disclaimer

List of Table


Table 1: Chinese Payment Channels (CNY Trillion), 2008-2012
Table 2: Market Entry Strategies of Various Foreign Corporate and Retail Bank
Table 3: Chinese Card Fraud (CNY Million), 2008-2012
Table 4: Chinese Consumer Card Spending by Product Category (CNY Million), 2008-2012
Table 5: Chinese Consumer Card Spending by Retail Channel (CNY Million), 2008-2017
Table 6: Chinese Card Payments Channel by Card Category (Million), 2008-2017
Table 7: Chinese Card Payments Channel Size by Volume of Cards (Billion), 2008-2017
Table 8: Chinese Card Payments Channel Size by Transaction Value (CNY Trillion), 2008-2017
Table 9: Chinese Card Payments Channel Size by Transaction Value (US$ Trillion), 2008-2017
Table 10: Chinese Credit Cards Category Size by Volume of Cards (Million), 2008-2017
Table 11: Chinese Credit Cards Category Size by Transaction Value (CNY Trillion), 2008-2017
Table 12: Chinese Credit Cards Category Size by Transaction Value (US$ Billion), 2008-2017
Table 13: Chinese Credit Card Category Size by Transactions Volume (Billion), 2008-2017
Table 14: Chinese Personal Credit Cards Sub-Category Size by Volume of Cards (Million), 2008-2017
Table 15: Chinese Personal Credit Cards Sub-Category Size by Transaction Value (CNY Trillion), 2008-2017
Table 16: Chinese Personal Credit Cards Sub-Category Size by Transaction Value (US$ Billion), 2008-2017
Table 17: Chinese Personal Credit Cards Sub-Category Size by Number of Transactions (Billion), 2008-2017
Table 18: Chinese Commercial Credit Cards Sub-Category Size by Volume of Cards (Million), 2008-2017
Table 19: Chinese Commercial Credit Cards Sub-Category Size by Transaction Value (CNY Billion), 2008-2017
Table 20: Chinese Commercial Credit Cards Sub-Category Size by Transaction Value (US$ Billion), 2008-2017
Table 21: Chinese Commercial Credit Cards Sub-Category Size by Number of Transactions (Million), 2008-2017
Table 22: Chinese Debit Card Category Size by Volume of Cards (Billion), 2008-2017
Table 23: Chinese Debit Cards Category Size by Transaction Value (CNY Trillion), 2008-2017
Table 24: Chinese Debit Cards Category Size by Transaction Value (US$ Trillion), 2008-2017
Table 25: Chinese Debit Cards Category Size by Volume of Transactions (Billion), 2008-2017
Table 26: Chinese Charge Cards Category Size by Volume of Cards (Million), 2008-2017
Table 27: Chinese Charge Cards Category Size by Transaction Value (CNY Billion), 2008-2017
Table 28: Chinese Charge Cards Category Size by Transaction Value (US$ Billion), 2008-2017
Table 29: Chinese Charge Cards Category Size by Volume of Transactions (Million), 2008-2017
Table 30: Chinese Personal Charge Cards Sub-Category Size by Volume of Cards (Million), 2008-2017
Table 31: Chinese Personal Charge Cards Sub-Category Size by Transaction Value (CNY Billion), 2008-2017
Table 32: Chinese Personal Charge Cards Sub-Category Size by Transaction Value (US$ Billion), 2008-2017
Table 33: Chinese Personal Charge Cards Sub-Category Size by Transaction Volume (Million), 2008-2017
Table 34: Chinese Commercial Charge Cards Sub-Category Size by Card Volume (Million), 2008-2017
Table 35: Chinese Commercial Charge Cards Sub-Category Size by Transaction Value (CNY Billion), 2008-2017
Table 36: Chinese Commercial Charge Cards Sub-Category Size by Transaction Value (US$ Billion), 2008-2017
Table 37: Chinese Commercial Charge Cards Sub-Category Size by Transaction Volume (Million), 2008-2017
Table 38: Chinese Prepaid Cards Category Size by Volume of Cards (Million), 2008-2017
Table 39: Chinese Prepaid Cards Category Size by Transaction Value (CNY Billion), 2008-2017
Table 40: Chinese Prepaid Cards Category Size by Transaction Value (US$ Billion), 2008-2017
Table 41: Chinese Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2008-2017
Table 42: Chinese Open-Loop Prepaid Cards Segment Size by Transaction Value (CNY Billion), 2008-2017
Table 43: Chinese Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Billion), 2008-2017
Table 44: Chinese Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2008-2017
Table 45: Chinese Closed-Loop Prepaid Cards Segment Size by Transaction Value (CNY Billion), 2008-2017
Table 46: Chinese Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Billion), 2008-2017
Table 47: Banks Served by UMS in the Merchant Acquiring Business
Table 48: SRCB’s Key Financial Indicators (CNY Billion), December 2011 and 2012
Table 49: SRCB - Card Product Offerings and Key Features
Table 50: BOC’s Key Financial Indicators (CNY Billion), December 2011 and 2012
Table 51: BOC - Card Product Offerings and Key Features
Table 52: ICBC’s Key Financial Indicators (CNY Billion), December 2011 and 2012
Table 53: ICBC - Card Product Offerings and Key Features
Table 54: ABC’s Key Financial Indicators (CNY Billion), December 2011 and 2012
Table 55: ABC - Card Product Offerings and Key Features
Table 56: Citibank China’s Key Financial Indicators (CNY Billion), December 2011 and 2012
Table 57: Citibank China - Card Product Offerings and Key Features
Table 58: Key Definitions

List of Chart


Figure 1: Benchmarking the Chinese Card Payments Channel Against Other Large Markets in the Region
Figure 2: China – Growth of Various Card Categories (%), 2008–2017
Figure 3: Penetration of ATMs in China, 2008–2017
Figure 4: Penetration of POS Terminals in China, 2008–2017
Figure 5: Chinese Internet Penetration Rate (%), 2008–2012
Figure 6: Chinese Retail Sales Value (CNY Trillion), 2008–2017
Figure 7: Chinese GDP Growth Rate (%), 2008–2017
Figure 8: Chinese GDP Per Capita Income (US$), 2008–2017
Figure 9: Chinese Unemployment Rate (%), 2008–2017
Figure 10: Share of Chinese Payment Channels (%), 2008 and 2012
Figure 11: Chinese Card Fraud (CNY Million), 2008 and 2012
Figure 12: Chinese Value of Card-Not-Present Fraud (CNY Million), 2008–2012
Figure 13: Chinese Counterfeit Card Fraud Value (CNY Million), 2008–2012
Figure 14: Chinese Value of Card Fraud by Lost or Stolen Cards (CNY Million), 2008–2012
Figure 15: Chinese Card ID Theft Fraud Value (CNY Million), 2008–2012
Figure 16: Chinese Cards Payments Channel Segmentation by Card Type
Figure 17: Chinese Volume of Outbound Tourists (Million), 2008–2012
Figure 18: Chinese Outbound Tourist Spending (CNY Billion), 2008–2017
Figure 19: Chinese Retail Consumer Card Spending by Product Category (%), 2012
Figure 20: Chinese Retail Consumer Card Spending by Retail Channel (%), 2012
Figure 21: Chinese Card Payments Channel by Card Category (%), 2008–2017
Figure 22: Chinese Card Payments Channel Size by Volume of Cards (Billion), 2008–2017
Figure 23: Chinese Card Payments Channel Size by Transaction Value (CNY Trillion), 2008–2017
Figure 24: Chinese Credit Cards Volume and Penetration, 2008–2017
Figure 25: Chinese Credit Cards Category Size by Volume of Cards (Million), 2008–2017
Figure 26: Chinese Credit Cards Category Size by Transaction Value (CNY Trillion), 2008–2017
Figure 27: Chinese Credit Card Category Size by Transactions Volume (Billion), 2008–2017
Figure 28: Chinese Credit Card Transactions Value by Channel (CNY Billion), 2008–2017
Figure 29: Chinese Credit Card Transactions Volume by Channel (Million), 2008–2017
Figure 30: Chinese Personal Credit Cards Sub-Category Size by Volume of Cards (Million), 2008–2017
Figure 31: Chinese Personal Credit Cards Sub-Category Size by Transaction Value (CNY Trillion), 2008–2017
Figure 32: Chinese Personal Credit Cards Segment Size by Number of Transactions (Billion), 2008–2017
Figure 33: Chinese Commercial Credit Cards Sub-Category Size by Volume of Cards (Million), 2008–2017
Figure 34: Chinese Commercial Credit Cards Sub-Category Size by Transaction Value (CNY Billion), 2008–2017
Figure 35: Chinese Commercial Credit Cards Sub-Category Size by Number of Transactions (Million), 2008–2017
Figure 36: Chinese Credit Cards Category by Volume of Cards (Million), 2011 and 2012
Figure 37: Chinese Credit Cards Category Share by Bank (%), 2012
Figure 38: Chinese Debit Cards Category Volume and Penetration, 2008–2017
Figure 39: Chinese Debit Card Category Size by Volume of Cards (Billion), 2008–2017
Figure 40: Chinese Debit Cards Category Size by Transaction Value (CNY Trillion), 2008–2017
Figure 41: Chinese Debit Cards Category Size by Volume of Transactions (Billion), 2008–2017
Figure 42: Chinese Debit Cards Category Transactions Value Share Analysis by Channel (CNY Trillion), 2008–2017
Figure 43: Chinese Debit Card Transactions Volume Share Analysis by Channel (Million), 2008–2017
Figure 44: Chinese Debit Cards Category by Volume of Cards (Billion), 2011 and 2012
Figure 45: Chinese Debit Cards Category Share by Bank (%), 2012
Figure 46: Chinese Charge Cards Category Volume and Penetration, 2008–2017
Figure 47: Chinese Charge Cards Category Size by Volume of Cards (Million), 2008–2017
Figure 48: Chinese Charge Cards Category Size by Transaction Value (CNY Billion), 2008–2017
Figure 49: Chinese Charge Cards Category Size by Volume of Transactions (Million), 2008–2017
Figure 50: Chinese Charge Card Transactions Value Share Analysis by Channel (CNY Billion), 2008–2017
Figure 51: Chinese Charge Card Transactions Volume Share Analysis by Channel (Million), 2008–2017
Figure 52: Chinese Personal Charge Cards Sub-Category Size by Volume of Cards (Million), 2008–2017
Figure 53: Chinese Personal Charge Cards Sub-Category Size by Transaction Value (CNY Billion), 2008–2017
Figure 54: Chinese Personal Charge Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Figure 55: Chinese Commercial Charge Cards Sub-Category Size by Card Volume (Million), 2008–2017
Figure 56: Chinese Commercial Charge Cards Sub-Category Size by Transaction Value (CNY Billion), 2008–2017
Figure 57: Chinese Commercial Charge Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Figure 58: Chinese Charge Cards Category Share by Volume of Cards (Million), 2011 and 2012
Figure 59: Chinese Prepaid Cards Category Volume and Penetration, 2008–2017
Figure 60: Chinese Prepaid Cards Category Size by Volume of Cards (Million), 2008–2017
Figure 61: Chinese Prepaid Cards Category Size by Transaction Value (CNY Billion), 2008–2017
Figure 62: Chinese Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2008–2017
Figure 63: Chinese Open-Loop Prepaid Cards Segment Size by Transaction Value (CNY Billion), 2008–2017
Figure 64: Chinese Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2008–2017
Figure 65: Chinese Closed-Loop Prepaid Cards Segment Size by Transaction Value (CNY Billion), 2008–2017
Figure 66: Annual Growth of ICBC’s Various Businesses (%), 2011–2012
Figure 67: ABC’s Volume of Card Products (Million), 2011 and 2012

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