Mei Ri Jing Ji Xin Wen·2026-01-14 12:31Core Insights - Visa is focusing on the "Magnetic Upgrade" project and Apple Pay to enhance its market presence in China, with the new president of Greater China, Zhang Wenyu, taking over from Yu Xue Li, who will retire by the end of 2025 [1] - The "Magnetic Upgrade" project aims to transition dual-branded magnetic stripe cards to chip cards, which have been implemented in several banks since 2025 [1][3] - The dual-branded cards, which were once popular for their "one card for both domestic and international use" feature, are losing market share due to increased competition and the rise of digital wallets like Alipay and WeChat Pay [2][11] Group 1: Market Dynamics - The dual-branded cards are facing declining status as competitors like American Express and Mastercard have obtained domestic clearing licenses and are moving towards single-branded products [2][6] - The shift in the payment landscape reflects a broader trend where traditional card products are being overshadowed by digital payment solutions [11][12] - The "Magnetic Upgrade" initiative provides a temporary boost to existing dual-branded cards, but its long-term effectiveness in reversing market trends remains uncertain [2][5] Group 2: Product Development - Several banks, including China Construction Bank and Bank of China, have initiated the "Magnetic Upgrade" for dual-branded cards, enhancing their security and usability [3][4] - The upgraded cards will continue to operate under the existing business logic, using UnionPay for domestic transactions and allowing cardholders to choose between UnionPay and Visa for international transactions [5][10] - The upgrade process has extended the validity of the cards, providing a significant benefit to users who frequently travel abroad [4][5] Group 3: Competitive Landscape - The competitive landscape is evolving, with Mastercard and American Express launching their own products that cater to both domestic and international markets, effectively replacing the role of dual-branded cards [6][9] - Visa's ongoing collaboration with UnionPay is seen as essential for maintaining its market presence in China, especially as it has not yet secured a domestic clearing license [8][9] - The relationship between card organizations is shifting, with a focus on collaboration to capture market share in an increasingly competitive environment [8][10] Group 4: Future Outlook - The future of card payments in China is uncertain, as the market is increasingly dominated by digital wallets, which have become the preferred payment method for many consumers [11][12] - Despite the challenges, traditional card payments still hold relevance in certain scenarios, particularly for international travelers and older consumers who may prefer cash or card transactions [12]