eTALK China Insights: Credit Cards in China

China’s Credit Card Disappearance?

China’s Credit Card Disappearance

Image Source: Getty Images

China has somehow forgone the credit card era and went straight to mobile payments.

This is largely due to China going through a huge and sudden burst of economic development over the recent decades.

Credit cards were never able to gain a strong foothold in the Chinese payment market before mobile payment appeared.

The Trend

Share of Mobile Payment in China

Data Source: IPSOS, WalktheChat

As we can see from the figure above, in 7 short years, mobile payments went from having less than 5% of the payment market share to controlling over 80% of the market.

Mobile payment penetration in large cities reach over 80%. In rural areas, we are still seeing approx. 66.5% mobile payment penetration. This is truly insane!

People normally living in rural areas that wouldn’t even know what credit cards are, are using mobile payments.

Mobile Payment User Penetration in 2018

Data Source: eMarketer

Popular Mobile Payment Platforms in China 2020

Data Source: Payment & Clearing Association of China

China leads the Asia-Pacific nations in terms of mobile payment penetration, by quite a bit.

And in China, Alipay and WeChat Pay dominate this market segment, also by quite a bit.

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