Chinese banks
had issued more than 1.3 billion debit, credit and semi-credit cards by
the end of September, roughly the equivalent of one for every person in China, according to China UnionPay, the nation's sole bank card network operator. However, vast wealth differentials both within and across provinces in China mean that card issuance and usage is restricted to affluent urban areas.
Bank
card consumption as a percentage of China's total retail sales is
seemingly rising, as China's avowedly cash-preferring consumers begin
switching to plastic, Xu Luode President of China UnionPay told a forum
on local finance. According to official figures, China has 183 banks
issuing cards that can be used at 1.08 million points of sale at
650,000 specially endorsed outlets, and 120,000 automatic teller
machines.
A survey released by ACNielsen in
November confirmed that plastic payment is starting to spread quickly
in China, although cash remains the primary form of payment. The
report, based on 11,500 Chinese consumers in 18 cities, including
Shanghai, Beijing, Guangzhou, Chengdu, Shenzhen and Shenyang, showed
that urban card holders were increasingly using cards not just for
shopping, but also for ATM cash withdrawals and debt installment
payments.
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