Regulatory changes, such as the recent World Trade Organisation (WTO) ruling to open financial markets including the payment card market, will allow international competition and further change in China’s electronic payments (e-payments) market, according to a research report by Mercator Advisory Group.
The report, entitled
‘China’s E-Payment Market 2012’
, notes that China, the world’s second largest economy, is also the world’s largest payment card market and projected to surpass the US as the leader in card payments as early as 2013. At the same time, China’s payment market remains closed to foreign companies, and international card networks have also been mostly excluded from the domestic market.
“China’s e-payment market is undergoing a very important era of change,” said Terry Xie, director of the group’s international advisory service and principal analyst on the report. “It is rare to see so many major changes happening at once. And that has major impacts of the global payments industry, more so than many have realised. The local banking and payments industry is trying to adapt to the new era, and so should the global payments industry and the players in it, who may need to re-evaluate their China strategy as well as their global strategies.”
The report provides an overview of China’s e-payments market, including a background of overall macroeconomic growth and trends. It examines developments in credit and debit card issuing markets, as well as the acceptance market, and updates in online and mobile payments. In addition, the research reviews strategic issues and changes in the industry, including the slowing credit card market, new payment regulations, the WTO ruling and its impact, the migration to chip cards, and a view of the Chinese co-branded credit card market.
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