Abstract
NEW RESEARCH REPORT BY MERCATOR ADVISORY GROUP
China' s credit card market continues to grow rapidly during the first half of
2007. By the end of this year, the number of credit cards in circulation in
China is anticipated to reach 100 million. However, profitability has become
a major concern for card issuers, processors, vendors, investors, as well as
other stake-holders. Consumer behavior, regulations, competition, interest
rates, interchange fee rates, among other factors, make profitability
challenging for many issuers in China, at least in the near future. As the
prime market becomes saturated in certain segments, issuers may begin to find
it difficult to sustain recent high-speed growth. Issuers should revise their
strategies in order to maintain a balance between sustainable growth and
healthy profits. Innovation, increased efficiency and product differentiation
among other factors are important for long-term growth and profitability in
China' s credit card market.
Terry Xie, Director of Mercator Advisory Group' s International Advisory
Service and principal analyst on this report comments, "Although some
challenges still exist in China' s credit card industry today, it is quite
hopeful that most large credit issuers in China could realize profits within 2
to 3 years by adjusting some of their market strategies. The market as a
whole continues to grow and conditions continue to improve making
profitability in the credit card business highly possible."
The most recent report from Mercator' s International Advisory Service provides
both qualitative and quantitative analyses on the profitability of China' s
credit card issuing market. This report also provides key insights on how to
realize long-term profitability in the market, based on the current state of
and trends in China' s payment card industry, regulatory issues, Chinese
consumers' income and behavior, and competing issuers' strategies.
The report contains 30 pages long and 7 exhibits
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