Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200812/20081230/article_386473.htm
Bank card growth loses steam in Q3
Created: 2008-12-30 19:04:00
Author:Zhang Fengming
CHINESE bank cards growth dropped in the third quarter as the growth of debit cards slowed, the central bank said today.
Chinese banks had issued a total of 1.73 billion bank cards by the end of September, a 19 percent increase from a year earlier, said the People's Bank of China today on its Website. The growth is 10.3 percentage points lower than a year ago, the central bank said.
Banks issued 1.6 billion debit cards as of September 30, up 16 percent from a year ago with the growth rate dropping 11.7 percentage points from a year earlier, the central bank said.
Debit card still dominates the market though its growth rate dropped while the credit card showed a strong growth during the period.
Overseas banks locally incorporated on the Chinese mainland are allowed to issue bank cards this year to get closer to their clients. The Bank of East Asia started to issue yuan-backed credit cards on the mainland this month to ride a more popular use of the plastic, especially the credit card, which was novel to most Chinese consumers before 2000.
The number of credit cards issued jumped 73 percent to 131.5 million at the end of the third quarter, the central bank said. The gain was still 5.9 percentage points higher than a year ago.
The big-five, state-owned banks are speeding up their credit card issuing faster than joint stock lenders.
Bank cards are becoming more popular among the 1.3 billion Chinese as rising incomes stoke consumer spending and shifted their expenditure vehicles from cash to bank cards.
Authorities are encouraging the non-cash payment measures to curb money laundering and strengthen tax collection.
By the end of September, 223 institutions had joined the China UnionPay Co network, up 10 percent from a quarter ago.
Bank card-based transaction value inched up 4.1 percent to 32.44 trillion yuan (US$4.74 trillion) in the third quarter from a year ago. The growth was 58.8 percentage points lower than a year earlier.
The per card consumption rose 0.7 percent to 592 yuan in the third quarter from the previous quarter while the per transaction consumption tumbled 8.7 percent to 1,435 yuan.
Chinese banks had issued a total of 1.73 billion bank cards by the end of September, a 19 percent increase from a year earlier, said the People's Bank of China today on its Website. The growth is 10.3 percentage points lower than a year ago, the central bank said.
Banks issued 1.6 billion debit cards as of September 30, up 16 percent from a year ago with the growth rate dropping 11.7 percentage points from a year earlier, the central bank said.
Debit card still dominates the market though its growth rate dropped while the credit card showed a strong growth during the period.
Overseas banks locally incorporated on the Chinese mainland are allowed to issue bank cards this year to get closer to their clients. The Bank of East Asia started to issue yuan-backed credit cards on the mainland this month to ride a more popular use of the plastic, especially the credit card, which was novel to most Chinese consumers before 2000.
The number of credit cards issued jumped 73 percent to 131.5 million at the end of the third quarter, the central bank said. The gain was still 5.9 percentage points higher than a year ago.
The big-five, state-owned banks are speeding up their credit card issuing faster than joint stock lenders.
Bank cards are becoming more popular among the 1.3 billion Chinese as rising incomes stoke consumer spending and shifted their expenditure vehicles from cash to bank cards.
Authorities are encouraging the non-cash payment measures to curb money laundering and strengthen tax collection.
By the end of September, 223 institutions had joined the China UnionPay Co network, up 10 percent from a quarter ago.
Bank card-based transaction value inched up 4.1 percent to 32.44 trillion yuan (US$4.74 trillion) in the third quarter from a year ago. The growth was 58.8 percentage points lower than a year earlier.
The per card consumption rose 0.7 percent to 592 yuan in the third quarter from the previous quarter while the per transaction consumption tumbled 8.7 percent to 1,435 yuan.
Copyright © 2001-2009 Shanghai Daily Publishing House