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

Published: Jan, 2014 | Pages: 105 | Publisher: Timetric
Industry: Financial Services | Report Format: Electronic (PDF)

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

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.
Reason 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.

 1 Executive Summary
2 Alysis of Industry Environment, Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technologies
2.1.1 ATMs
2.1.2 POS termils
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 dymics
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 Alysis
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 Alysis by product categories
5.3.2 Alysis by retail channels
6 Alysis of Card Payments Channel and Growth Prospects
6.1 Channel Share Alysis by Card Category
6.2 Size and Forecast of the Card Payments Channel
6.2.1 Alysis by number of cards in circulation
6.2.2 Alysis by transaction value
7 Alysis of Credit Card Payments and Growth Prospects
7.1 Overall Category Size and Forecast
7.1.1 Alysis by volume of cards in circulation
7.1.2 Alysis by transaction value
7.1.3 Alysis by transaction volume
7.2 Transaction Share Alysis by Channel
7.2.1 Alysis by transaction value
7.2.2 Alysis by transaction volume
7.3 Persol Credit Cards Size and Forecast
7.3.1 Alysis by volume of cards in circulation
7.3.2 Alysis by transaction value
7.3.3 Alysis by transaction volume
7.4 Commercial Credit Cards Sub-Category Size and Forecast
7.4.1 Alysis by number of cards in circulation
7.4.2 Alysis by transaction value
7.4.3 Alysis by transaction volume
7.5 Competitive Landscape
7.5.1 Scheme share alysis
7.5.2 Issuer share alysis
8 Alysis of Debit Card Payments and Growth Prospects
8.1 Overall Category Size and Forecast
8.1.1 Alysis by number of cards in circulation
8.1.2 Alysis by transaction value
8.1.3 Alysis by transaction volume
8.2 Transaction Share Alysis by Channel
8.2.1 Alysis by transaction value
8.2.2 Alysis by transaction volume
8.3 Competitive Landscape
8.3.1 Scheme share alysis
8.3.2 Issuer share alysis
9 Alysis of Charge Card Payments and Growth Prospects
9.1 Overall Category Size and Forecast
9.1.1 Alysis by number of cards in circulation
9.1.2 Alysis by transaction value
9.1.3 Alysis by transaction volume
9.2 Transaction Share Alysis by Channel
9.2.1 Alysis by transaction value
9.2.2 Alysis by transaction volume
9.3 Persol Charge Cards Segment Size and Forecast
9.3.1 Alysis by number of cards in circulation
9.3.2 Alysis by transaction value
9.3.3 Alysis by transaction volume
9.4 Commercial Charge Cards Sub-Category Size and Forecast
9.4.1 Alysis by volume of cards in circulation
9.4.2 Alysis by transaction value
9.4.3 Alysis by transaction volume
9.5 Competitive Landscape
9.5.1 Scheme share alysis
10 Alysis of Prepaid Card Payments and Growth Prospects
10.1 Overall Category Size and Forecast
10.1.1 Alysis by number of cards in circulation
10.1.2 Alysis by transaction value
10.2 Open-Loop Prepaid Cards Segment Size and Forecast
10.2.1 Alysis by number of cards in circulation
10.2.2 Alysis by transaction value
10.3 Closed-Loop Prepaid Cards Segment Size and Forecast
10.3.1 Alysis by number of cards in circulation
10.3.2 Alysis 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 fincials
12.1.2 Card portfolio
12.1.3 Strategies
12.2 Bank of Chi (BOC)
12.2.1 Key fincials
12.2.2 Card portfolio
12.2.3 Strategies
12.3 Industrial and Commercial Bank of Chi Limited (ICBC)
12.3.1 Key fincials
12.3.2 Card portfolio
12.3.3 Strategies
12.4 Agricultural Bank of Chi
12.4.1 Key fincials
12.4.2 Card portfolio
12.4.3 Strategies
12.5 Citibank (Chi) Co., Ltd
12.5.1 Key fincials
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 Tables
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 Persol Credit Cards Sub-Category Size by Volume of Cards (Million), 2008-2017
Table 15: Chinese Persol Credit Cards Sub-Category Size by Transaction Value (CNY Trillion), 2008-2017
Table 16: Chinese Persol Credit Cards Sub-Category Size by Transaction Value (US$ Billion), 2008-2017
Table 17: Chinese Persol 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 Persol Charge Cards Sub-Category Size by Volume of Cards (Million), 2008-2017
Table 31: Chinese Persol Charge Cards Sub-Category Size by Transaction Value (CNY Billion), 2008-2017
Table 32: Chinese Persol Charge Cards Sub-Category Size by Transaction Value (US$ Billion), 2008-2017
Table 33: Chinese Persol 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 Fincial Indicators (CNY Billion), December 2011 and 2012
Table 49: SRCB - Card Product Offerings and Key Features
Table 50: BOC's Key Fincial Indicators (CNY Billion), December 2011 and 2012
Table 51: BOC - Card Product Offerings and Key Features
Table 52: ICBC's Key Fincial Indicators (CNY Billion), December 2011 and 2012
Table 53: ICBC - Card Product Offerings and Key Features
Table 54: ABC's Key Fincial Indicators (CNY Billion), December 2011 and 2012
Table 55: ABC - Card Product Offerings and Key Features
Table 56: Citibank Chi's Key Fincial Indicators (CNY Billion), December 2011 and 2012
Table 57: Citibank Chi - Card Product Offerings and Key Features
Table 58: Key Definitions