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Tag: creditcards

  • China’s Credit and Charge Payments Market Expected to Expand 2.4% by 2025, Says GlobalData

    China’s Credit and Charge Payments Market Expected to Expand 2.4% by 2025, Says GlobalData

    China’s credit and charge card payments market is gearing up for a rebound, with a projected growth of 2.4%, potentially reaching an impressive CNY38.4 trillion (approximately $5.3 trillion) by 2025. This forecast comes from GlobalData, a leading data and analytics firm, and indicates a promising recovery after a challenging couple of years due to various economic pressures.

    Consumer Trends Driving Change

    The anticipated growth is largely attributed to a rise in consumer spending and an accelerating shift towards cashless transactions. As more Chinese consumers embrace the convenience of digital payments, the market is poised for an upward trajectory. Enhanced value-added incentives such as cashback rewards, flexible repayment options, and attractive instalment plans are sweetening the deal for consumers.

    Challenges and Recovery

    While optimism is returning, it’s important to note that the credit and charge card payment market in China faced a setback in 2024, with a 7.7% decline in transaction value. Factors such as high inflation, geopolitical tensions, and the trade dispute with the United States played a significant role in this dip. Yet, the resilience of the market and the growing inclination towards credit cards remain evident.

    Rising Popularity of Credit Cards

    Kartik Challa, Senior Banking and Payments Analyst at GlobalData, noted that despite still lagging behind debit cards in terms of penetration, credit and charge cards are increasingly favored for payments. In 2025, the payment frequency for these cards is expected to reach 55.3 transactions per year—significantly outpacing debit card usage. Challa further predicts this frequency will skyrocket to 79 transactions per card by 2029.

    As China’s middle class expands and incomes rise, awareness of the benefits of credit cards—bolstered by aggressive promotions from banks—is driving adoption and usage. It seems that credit cards may soon rival their debit counterparts, dominating the financial landscape in unforeseen ways.

    Questions & Answers

    What factors are driving the expected growth in China’s credit card market?
    The growth is primarily driven by rising consumer spending and a shift towards cashless transactions, along with attractive incentives such as cashback offers and flexible repayment options.

    How did the credit card market perform in 2024?
    In 2024, the market experienced a decline of 7.7% in transaction value, influenced by high inflation, geopolitical uncertainties, and the ongoing trade dispute with the US.

    What does the future look like for payment frequency on credit cards?
    Payment frequency for credit and charge cards is projected to increase from 55.3 transactions per year in 2025 to 79 by 2029, reflecting a growing preference for credit cards among consumers.

  • South Korea’s Payment Card Market Set to Hit $1 Trillion by 2025: A Game Changer for Retail!

    South Korea’s Payment Card Market Set to Hit $1 Trillion by 2025: A Game Changer for Retail!

    In a remarkable shift towards digital finance, South Korea’s payment card market—encompassing both point-of-sale (POS) payments and ATM withdrawals—is projected to grow by 3.8%, reaching an impressive $1 trillion (KRW1.4 quadrillion) by 2025, as revealed in a recent report by GlobalData. This growth is largely fueled by a burgeoning preference for digital payment solutions among consumers.

    Between 2020 and 2024, card payments in South Korea are anticipated to experience a robust compound annual growth rate (CAGR) of 7.8%, spiking to about $972.4 billion (KRW1.3 quadrillion) by 2024. In stark contrast, cash withdrawals from ATMs are expected to grow only marginally at 0.9%, as more consumers opt for card-based transactions over traditional cash withdrawals.

    “South Korea’s cards and payments industry is well-developed, with each individual estimated to hold more than six cards as of July 2025,” noted Shivani Gupta, a banking and payments analyst at GlobalData. Gupta also highlighted that the frequency of card usage is on the rise, increasing from an average of 86.2 transactions per card in 2021 to a projected 97.8 transactions per card by 2025.

    By 2025, POS transactions are expected to dominate the landscape, accounting for a striking 96.1% of all card payments, leaving a minuscule share for cash withdrawals. The total number of card payment transactions is forecasted to increase from 24.2 billion in 2021 to 30.7 billion by 2025, achieving a CAGR of 6.2%, and advancing further to 35.9 billion by 2029.

    Efforts to enhance card usage are evident in recent industry initiatives. In January 2025, payment company NHN KCP partnered with Verifone to launch the all-in-one POS terminal “KCP Terminal The Black,” specifically designed to assist small and medium-sized businesses. Additionally, a collaborative agreement signed in July on Jeju Island between six organizations, including the Korea Payment Service Promotion Agency, aims to broaden the use of contactless cards on local bus services. Who knew public transport could be this tech-savvy?

    Looking ahead, the payment cards market is expected to continue its upward trajectory, forecasted to grow at a CAGR of 3.6% from 2025 to 2029, ultimately reaching KRW1.6 quadrillion ($1.2 trillion) by 2029, according to Gupta.

    Questions & Answers

    What is driving the growth of the South Korean payment card market?
    The growth is largely attributed to a rising preference for digital payments among consumers, significantly influencing both POS payments and ATM withdrawals.

    How many cards does the average South Korean hold?
    As of July 2025, it is estimated that each individual in South Korea will hold more than six payment cards, reflecting the market’s robust development.

    What innovations are being introduced to enhance card usage?
    Recent innovations include the launch of the all-in-one POS terminal “KCP Terminal The Black” by NHN KCP and Verifone, aimed at supporting small and medium-sized businesses, as well as initiatives to expand contactless card use in public transport on Jeju Island.

  • China tightens rules on $1.3 trln credit card business

    China tightens rules on $1.3 trln credit card business

    China unveiled tighter rules late on Thursday to better regulate its $1.3 trillion credit card industry, urging lenders to adopt a “prudent” growth strategy, and monitor risks more closely.

    Banks are also barred from using the number of cards issued or market share as main performance metrics, and are required to cap the number of dormant cards at 20% of total, according to rules jointly published by China’s central bank, and the country’s banking regulator.

    “China’s credit card business has been growing rapidly, playing a key role in facilitating payment and consumption,” the China Banking and Insurance Regulatory Commission (CBIRC) said in a statement on its website accompanying the release of the new rules.

    “Recently, however, some banks … are lax in risk management, and have behaved in ways that hurt customers’ interest,” the regulator said.

    Chinese banks have issued a total of 800 million credit cards as of the end of 2021, with outstanding loans totalling 8.62 trillion yuan ($1.29 trillion), according to the People’s Bank of China. Roughly 86 billion yuan of credit card loans, or 1% of total outstanding, are overdue for six months or longer.

    The new rules require banks to tighten scrutiny over credit card loans, and strengthen risk management control.

    Banks must also set up a sound system to monitor, identify, alert and prevent abuse in the credit card business, according to the rules.

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  • Mastercard to Enter China Payments Market

    Mastercard to Enter China Payments Market

    Mastercard’s joint venture in China has been the green light given by the People’s Bank of China for it to begin formal preparations to set up a domestic bankcard clearing institution in China.

    Mastercard’s joint venture with NetsUnion Clearing will need to complete preparation work within a year, following its approval to begin operations in the country, China’s central bank said in a press statement on Tuesday.

    The approval of the preparation application of the bank card clearing institution of Wanshilian is another concrete reflection of China’s opening up of the financial industry and deepening financial supply-side reform, PBOC said in the statement.

    In 2015, China opened its bank card clearing market to foreign players but in practice has been slow to actually spur competition currently still dominated by state-owned UnionPay. The first foreign company to start preparations for the business was American Express in 2018 through a joint venture with Chines fintech firm LianLian.

    China is a vital market for us and we have reiterated our unwavering commitment to helping drive a safer, more inclusive and seamless payments ecosystem for Chinese consumers and businesses, Ajay Banga, president and CEO, Mastercard, said in a statement.

    China’s mobile payments market is worth some $27 trillion, according to iResearch.

    American Express is also close to receiving approval for its bank card clearing business in China. Earlier in January, the People’s Bank of China announced the acceptance of its application.

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  • Card Payments To Exceed One Billion In Hong Kong

    Card Payments To Exceed One Billion In Hong Kong

    Despite the dominance of cash, card payments volume in Hong Kong is expected to surpass one billion in 2020, says GlobalData.

    The convenience of electronic payments, robust payment infrastructure and the emergence of contactless payments are expected to drive the total number of card payments from 642.0 million in 2015 to 1 billion in 2020, according to GlobalData, a data and analytics company.

    Hong Kong’s high banked population, growing preference for contactless technology and, the growing e-commerce market will further support the use of payment cards over the next five years,” said Nikhil Reddy, Banking and Payments Analyst at GlobalData in a media statement on Monday.

    Hong Kong has a highly penetrated payment card market, with each individual holding more than three cards in 2019. The steady progress in the adoption and use of payment cards, plus the high penetration, are supported by the government and banks’ efforts to provide banking services even in remote areas.

    The expansion of banking infrastructure through the introduction of mobile banking branches, new physical bank branches and the establishment of virtual banks, were also factors.

    Hong Kong’s payment card market is mainly driven by credit and charge cards, which accounted for 67.9 percent of total card payment value in 2019, GlobalData’s Payment Cards Analytics reveals. The total card payment value in the country is forecast to increase from HK$43.3bn in 2019 to HK$59.6bn in 2023.

    The pricing benefits such as referral programs, installment facilities, cashback and discounts associated with credit and charge cards are some of the key reasons for their preference. In addition, these cards are increasingly preferred for online shopping and for transactions overseas.

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  • Visa Buys Out Personal Finance Enabler In Billion-Dollar Deal

    Visa Buys Out Personal Finance Enabler In Billion-Dollar Deal

    Visa will be buying privately held financial technology startup Plaid in a $5.3 billion deal, according to a statement from the payments processor.

    Visa and rival Mastercard had invested in Plaid in a $250 million series C funding round in 2018 that reportedly valued the firm at $2.65 billion. Visa said it expects the deal to close in the next three to six months and benefit its adjusted earnings per share at the end of the third year.

    The purchase price is twice the final private valuation and Visa is funding the transaction from cash on hand and debt issuance.

    Plaid focuses on enabling consumers and businesses to interact with their bank accounts, check balances, and make payments through financial technology applications.

    Founded in 2013, its technology lets people link their bank accounts to mobile apps like Venmo. It links to over 11,000 financial institutions across the United States, Canada, and Europe.

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  • Credit cards decline amid buy now pay later boom

    Credit cards decline amid buy now pay later boom

    In the twelve months to March 2019, almost half a million Australians got rid of their credit cards, with the total number of credit cards in the country falling to 14.6 million compared to the 15 million a year prior.

    This trend, highlighted in illion’s second Credit Card Nation report, suggests that Australia has surpassed ‘peak card’ and is now on a long-term downward trend in terms of credit card ownership.

    According to illion chief executive Simon Bligh, falling house prices have had the secondary effect of causing urban Australians to consolidate their financial position – including a focus on clearing unnecessary debt.

    “In the country, it’s a different story, and many parts of rural Australia have faced extenuating circumstances with their livelihoods heavily impacted by the drought,” Bligh said.

    “Farmers have needed support with their cash flow and have turned to credit cards.

    “The Australian economy is facing weak spending patterns, low wage growth, high levels of mortgage debt and low rates of saving.

    “While the number of credit cards overall is falling, those who have them are using them more often. Some consumers are struggling to manage their cash flow and are opting to drift into debt rather than pay off their bills immediately.”

    According to the report, card-based transactions are likely to continue to fall in volume due to the rise of alternative payment systems, such as direct debit, PayPal, BNPL, and payment through social platforms such as Facebook.

    According to Bligh, as credit lenders have adjusted their assessment criteria based on increased pressure from regulators, credit users who were already problematic are finding it more difficult to obtain further credit, while those who are low-risk and high-reward have been able to maintain strong credit ratings.

    “But here’s where it gets interesting – our research this time around shows that millennials are now the only group that have increased ownership of credit cards,” Bligh said.

    “Granted the numbers are small, and you may be asking why this is – especially as we know that young people under 25 pose the greatest risk of failing to pay back their debts and are almost six times more likely to be two months behind in their repayments than their parents.”

    There are two potential reasons for this, Bligh said. Firstly, millennial men are using both credit cards and buy now pay later services, and secondly that market forces may be pushing credit lenders to take on more risky endeavours to keep their numbers up as overall credit usage falls.

    “Our society is in the early stages of moving towards a buy now pay later approach for many low-cost items, with this coming at the cost of a general decline in the usage of credit cards,” Bligh said.

    “Young people are at the forefront of these changes and are using both at the moment – almost in equal measure.”

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  • Credit Card spending up in April

    Credit Card spending up in April

    Retail spending on electronic cards rose in April as Kiwis took advantage of the extended holiday period to eat out and take holidays away from home.

    Card spending in April rose 0.6 percent seasonally adjusted after a 0.2 percent decrease in March, according to data from Statistics NZ.

    The increase in credit and debit card spending in April coincided with the timing of Easter and the school holidays.

    “Many employees took three days off to get a 10-day holiday over the Easter and Anzac Day period,” said Sue Chapman, retail statistics manager.

    According to Statistics NZ, retail sales increased despite the reduced trading hours in April.

    In April, spending on eating out and staying away from home (hospitality) rose $6.3 million (0.6 percent) on March, and spending on groceries (consumables) rose $10 million (0.5 percent).

    Apparel sales rose 1.8 percent in April after falling 2.9 percent in March. Fuel was up $17 million (2.8 percent), and durables, up $17 million (1.3 percent), also drove the increase in retail spending.

    Chapman said the increase in fuel spending was due to climbing fuel prices.

    “Fuel prices increased for the fourth consecutive month, after falling late last year,” she said.

    The retail durables industry, which includes furniture, hardware, appliances, and pharmaceutical retailing, bounced back after a 1.7 percent decrease in March.

    Core retail spending, excluding fuel and vehicle spending, saw a 0.5 percent lift following a 0.3 decline in March.

    The total value of electronic card spending, including the two non-retail categories (services and non-retail), saw a 0.4 percent increase in April, following a 0.1 percent fall in March.

    In actual terms, retail spending using electronic cards was $5.3 billion, up to $232 million (4.5 percent) from April 2018.

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