More Residents Using Credit Cards in Paying for Items
Chinese people are starting to use credit cards more than cash as its gaining popularity among the residents as shown through a report by China Banking Association that card payments has reached 15 trillion yuan last year. Volume was up by 16 percent compared to the previous year and in 2014 64 million new credit cards were issued to residents bringing the total number of user to 460 million.
Consumer reports also highlighted the rising risks in the industry, for 2014 credit card payments were delayed by up to half a year or 43 percent year on year or 35.76 billion yuan. China multi trillion bank card clearing market has long been monopolized by China UnionPay Co. a national bank card association that was founded in 2002. It was the only company that was approved byte central bank to provide clearing services for all bank card transaction in the country.
To slowly open up the market to bring in the competition, detailed regulations were announced by the China State Council and widen up the market for bank clearing services. From June 1 several companies that have a standard bank card clearing system and a registered capital of no less than 1 billion yuan is qualified to conduct bank card clearing services.