21世纪经济报道·2025-09-18 13:18Core 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 costs and enhancing card usage willingness [1][3]. Group 1: Currency Upgrade Details - China Merchants Bank announced that starting from October 28, 2025, certain Mastercard credit cards will switch cross-border transaction settlements from USD to RMB, streamlining the process [3]. - Ping An Bank will also support RMB settlements for foreign currency transactions starting September 25, allowing customers to choose between RMB and USD for their transactions [3][5]. - The upgrade primarily affects Mastercard products, including standard, platinum, and world credit cards issued by China Merchants Bank [3]. Group 2: Market Reactions and Implications - Market interpretations of the currency upgrade 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]. - The upgrade is seen as a response to requirements from card organizations like Mastercard, rather than a purely market-driven initiative [1][5]. - The shift may enhance customer experience and potentially expand the issuance scale of Mastercard in mainland China [7][8]. Group 3: Industry Context and Challenges - The credit card industry is facing challenges, with a reported decline in the number of credit cards and transaction volumes across major banks [11]. - Data from the People's Bank of China indicates a decrease of 6 million credit cards in the second quarter of 2025, marking a continuous decline over 11 quarters [11]. - Major banks, including China Merchants Bank and CITIC Bank, reported year-on-year declines in credit card consumption, contributing to pressure on fee income from card services [11]. Group 4: Competitive Landscape - The competition among card organizations is highlighted, with Mastercard and American Express having established local operations in China, while UnionPay remains a dominant player [7]. - The currency upgrade may influence market share dynamics among card organizations, although the immediate impact on consumer experience is considered limited [12].