Chinese Credit Card Offers and Their Development

Did you know that credit card consumption was one of 60 areas promoted in 2003 to welcome The Olympics in Beijin? Credit card introduced the economic development in China.

You probably will be surprised to find out that the Chinese market is developing very fast and transforming from cash to credit. But according to the statistics it is a fact. Both Chinese and international banks were keeping an eye on credit cards market for several years. And as Chinese people became wealthier and their spending power became stronger, they felt more and more comfortable to accept credit car offers and take on debt.

With the development of strong market economy, a lot of people wish to owe a credit card; especially the young (aged 25-34).  They want to take an advantage of  best credit card offers  for their stable and prosperous future.

Any resident aged 21 or more who earns more than 50.000 RMB is qualified to get a credit card.  Applicants have to fill out the form, give the proof of their annual income and the ID. The first credit card appeared in China in 1985 due to the fact that Visa made Great Wall Card its member. In 1988 China Bank began to issue first international credit cards.

Since that time Chinese banks have issued more than 140 million cards. Every year the number of issued cards is increasing by 64%, the total sums of transactions- by 76% and the number of retailers who accept plastic cards is growing by 51% annually.

At first, there were only 4 banks providing the population of China with credit cards, now this number came up to more than 20. Isn't it amazing?

It is not surprising that the percentage of retail purchases using credit cards grew almost to 70% of all revenue.

Of course, the Chinese society is not still well aware of credit card offers. Most of them know nothing about cash back benefits, 0% APR and other particularities of credit cards. 

The survey has also shown that most Chinese residents have difficulties in identifying a debit card versus a credit card.

It's obvious that banks have to educate their customers about the benefits and the privileges of credit cards, so that more people will carry and use them.

Still credit card companies provide a number of security services for their customers, like anti-fraud service. In case the card is stolen it is automatically blocked within 24 hours.

There are many international credit cards available in China, like Visa. Chinese credit card market is open for the competition. There are many opportunities for international banks and credit card companies on this market.

And in several years there will be even more credit card offers when domestic banks will make softer regulations for foreign players.

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