2 1 Shi Ji Jing Ji Bao Dao·2025-09-18 13:41Core Viewpoint - Recent changes in credit card foreign currency transactions by several banks, including China Merchants Bank and Ping An Bank, have shifted from USD to RMB for cross-border transactions, potentially reducing currency exchange friction and enhancing card usage willingness [1][3][10]. Group 1: Changes in Credit Card Transactions - Multiple banks have upgraded their credit card foreign currency transactions to support RMB instead of USD, streamlining the cross-border payment process [1][3]. - China Merchants Bank announced that from October 28, 2025, certain Mastercard products will switch their cross-border transaction settlement currency from USD to RMB [3]. - Ping An Bank will allow customers to choose between RMB and USD for foreign currency transactions starting September 25 [4]. Group 2: Market Reactions and Implications - Market interpretations of these changes vary, with some viewing it as a marketing strategy under pressure in the credit card business, while others link it to the internationalization of the RMB [1][10]. - The credit card industry is under pressure, with a reported decline in the number of credit cards and transaction volumes across major banks [10]. Group 3: Competitive Landscape - The upgrade reflects competitive dynamics among card organizations, as Mastercard and Visa traditionally required two currency conversions, which is now reduced to one with the RMB switch [6][7]. - The shift may enhance Mastercard's market share in China, benefiting both the card organization and the partnering banks [6][10]. Group 4: Customer Experience and Fees - The changes are expected to provide a better customer experience, although the immediate impact on consumers may be minimal in terms of cost differences [11]. - The adjustment will also alter the fee structure for cash advances in foreign currencies, transitioning to a RMB settlement line [10].