Review of China 's Bank Card Industry in 2016 and Prospect of 2017

With the deepening of the structural reform of the supply side of the country, the 

transformation and upgrading of the industry has been accelerating. The economy has been 

stabilized in the "new normal state", the economic operation has been maintained in a 

reasonable range, the quality and efficiency have been improved and the economic structure 

has been optimized , Won the "thirteen five" a good start. In the context of macroeconomic 

stability and progress, China's bank card industry as a whole continue to maintain rapid 

development, rapid development of mobile payment and become the highlight of industrial 

innovation, bank card independent brand international breakthrough, commercial bank credit 

card business Model of major changes, regulators of the market norms gradually 

strengthened.

A Review of the Development of China 's Bank Card Industry in 2016

At present, China's bank card issuance, acceptance and transaction size are the same period 

in the United States 4.3 times, 1.7 times and 1.6 times, are ranked first in the world. 

With the rapid rise of China's bank card industry, China's position in the global payment 

industry to further improve the territory. In 2016, China's bank card industry has shown 

five basic characteristics.

1. Bank card industry continues to maintain rapid development

In 2016, China's bank card industry to achieve a smooth and rapid development. In the 

issuance of the card, as of the end of 2016, the total amount of national bank card 

issuance is expected to more than 6.2 billion, an increase of 14.5%, for ten consecutive 

years to maintain double-digit growth. In 2016, the number and amount of cross-bank 

transactions across the country reached 27.11 billion and 72.9 trillion yuan, respectively, 

up 16.8% and 35.2% respectively, higher than the growth rate of other countries.

Nearly 80 million units. At present, China's bank card penetration rate of nearly 49%, more 

than the level of some developed countries. Bank card consumption to calculate the amount 

of China's bank card industry in the proportion of the world has more than 30%. Some of the 

late payment industry began to take China as an example, learn from China's experience, the 

introduction of China to pay technology and standards.

2. The rapid development of mobile payment and become the highlight of industrial 

innovation

In 2016, China's mobile payment to maintain a steady and rapid development. According to 

the data released by the People's Bank of China in the third quarter of 2016, the banking 

financial institutions handled 11.07 billion pencils of online payment business, amounting 

to 433.93 trillion yuan, up 41.34 percent year on year, And 0.26%; mobile payment business 

6.629 billion pen, the amount of 35.33 trillion yuan, respectively, year on year increase 

of 45.97% and 94.45%. Non-bank payment agencies handled a total of 8440.28 billion network 

payment business, the amount of 26.34 trillion yuan, an increase of 106.83% and 105.82%, 

mobile payment in the payment market position is increasingly important.

3. Bank card independent brand international breakthrough

Over the past ten years, China UnionPay around the "global network, international brand" 

strategic vision, and constantly speed up the process of internationalization. As of the 

end of 2016, CUP card global acceptance network has been extended to more than 160 

countries and regions, outside the cumulative opening of nearly 20 million businesses, ATM 

terminals more than 1.3 million units, more than 68 million foreign cumulative card 

issuance, the growing market size, Has gradually grown into one of the major international 

payment brands.

4. Commercial bank credit card business model is undergoing important changes

September 6, 2016, with the separation of loans, the abolition of the industry difference 

pricing as the core content of the bank card credit card pricing reform formal 

implementation, which prompted commercial banks to adjust the business of bank card 

business. Credit cards are increasingly returning to their retail and personal consumer 

credit instruments, and the income structure of credit card centers will change and have a 

profound impact on the business strategy of credit card centers.

5. Regulatory policy further improved, the industrial environment continues to improve

In order to promote China's healthy and orderly development of the industry, to promote 

market competition and stimulate the vitality of the market innovation, in 2016, the 

regulatory authorities accelerated the pace of supervision system construction, increased 

supervision and promote the healthy and orderly development of the market.

Second, 2017 China bank card industry development outlook

Looking forward to 2017, with the "National Economic and Social Development thirteenth 

five-year plan" a series of initiatives gradually implemented, the state supply side of the 

structural reform continues to deepen, the relevant system dividends will be gradually 

released, China's economy in the " Development balance, inclusiveness, sustainability "on 

the basis of will continue to maintain high growth. Which will be China's bank card 

industry to continue to innovate and change, and lay a good foundation for rapid 

development.

1. The development of the bank card market is becoming more and more refined

Since 2002, the Chinese bank card industry has experienced more than ten years of rapid 

growth, bank card issuance volume maintained more than double-digit high-speed growth, but 

the bank card's live card rate has been high, the debit card card rate only For about 12%, 

the credit card's live card rate is only about 40%, bank card live card rate is not high 

become the main problem of the bank card industry.

2. Accept the market structure will be more diversified

With the issuance of the Notice of the General Office of the People's Bank of China on the 

Implementation of the Provisions on the Provision of Depository of the Client's Payment 

Fund, the development of the Receipt Market will be further standardized and the non-bank 

payment institution may have a brief slowdown The development trend of non-bank payment 

institutions, "re-combination, Baotuan heating," the inherent demand will increase. 

Commercial banks will pay more attention to the development of the collection business, the 

collection of business as an important basis for the development of its retail business, 

thus accelerating the diversification of the development of the market.

3. Small high-frequency payment market is becoming a new bright spot

Benefit from the rapid development of mobile Internet, pay the rapid transformation of the 

industry, in the Internet finance, Pratt & Whitney finance continue to play an important 

role in the user scale was geometric growth. Especially in the high frequency of 

interaction, with the daily life of close, the user sticky large small high-frequency 

payment areas, commercial banks, non-bank payment agencies, mobile phone manufacturers, 

telecom operators and other industries increasingly fierce competition, industry 

Participants' measurement of value is shifting from cash flow to market share. In 2017, the 

industry will continue to force small areas of high-frequency, in different businesses, 

industries, scenes for consumers to bring more diversified payment options.

4. Payment market will be more standardized

With the personal bank account classification management, the Internet financial risk 

special rectification, crack down on the management of new types of criminal network crime 

special action continues to advance, payment and market development increasingly 

standardized. The industry began to focus on the transfer to the small micro-businesses, 

secondary cities and counties and cities and other Pratt & Whitney financial payment market 

for offline financial management, Internet finance payment needs will be more prudent in 

the risk prevention efforts continue to increase, Market norms continue to enhance the 

background, the bank card industry will be toward a more standardized and orderly 

direction, the pace of development will be more robust.

5. New technology, new products to accelerate the upgrade

Internet, especially the mobile Internet era, with the diversification of payment needs and 

payment of the diversity of the scene, the payment market will show a variety of payment 

products coexist development trend. The digital technology, represented by NFC, HCE, two-

dimensional code and Bluetooth 4.0, is a biometrics authentication technique based on 

fingerprint and voiceprint. The intelligent scene represented by AR and VR is the 

intelligent scene represented by AR and VR. It is possible to promote the innovation and 

development of the payment market, the new payment technology for the industry to promote 

the role will be further strengthened, it is worth further attention.

For a long time, China UnionPay has always adhered to the development path of open card 

organization model, together with the global cooperation agencies to develop domestic and 

international markets. In 2017, China UnionPay will firmly build an open platform type 

comprehensive payment service provider positioning unwavering, to internationalization, 

market as the goal, and constantly improve themselves, stimulate endogenous power, 

application of innovative technology, continue to play a good market "organizers Leaders, 

promoters, coordinators, motivators, "the role of joint commercial banks, payment agencies 

and partners in various fields, and jointly promote the rapid and healthy development of 

China's bank card industry.