Due to the late development of the domestic credit card market, China's electronic payments market is essentially developing 50 years later than the US and other developed markets. This late start presents some challenges for consumers and companies interested in new payment systems. It also has left fewer legacy systems in place, however, and China's market remains more open to alternative e-payment technologies and companies.
The first Chinese credit card was not issued until 1986 by the Bank of China. Adoption was slow over the following two decades due to a lack of consumer demand, a dearth of merchants which accepted card payment, and the lack of a unified appraisal system in the banking sector. It was not until the founding of China UnionPay in 2002 that bankcards in China were finally unified under a nationwide network and began to be used in large numbers.
Without a widespread credit card network to leverage, online (and mobile) payment models in China are based on a mix business models pieced together from banks, mobile operators, online payment providers, and international payment processors. Currently all forms of non-cash payment are still relatively immature in China, including online payment, credit cards, prepaid cash cards, mobile payment, and others.
Next: Bankcards Issued: 1.8 billion
Comments