Core Insights - The People's Bank of China released the overall situation of the payment system for the second quarter of 2025, indicating a significant increase in the number of bank accounts and card issuance, but a decline in transaction amounts [2][5][6] Group 1: Payment System Overview - As of the end of Q2 2025, the total number of bank accounts in China reached 15.238 billion, with 1.16 billion corporate accounts and 15.122 billion personal accounts [5] - The total number of bank cards issued was 10.068 billion, a quarter-on-quarter increase of 0.68%, with debit cards at 9.354 billion (up 0.81%) and credit cards plus loan cards at 715 million (down 0.83%) [5][6] - The total number of bank card transactions was 146.662 billion, a quarter-on-quarter increase of 12.9%, while the transaction amount was 226.7 trillion yuan, a decrease of 12.06% [5][6] Group 2: Credit Card Trends - The number of credit cards and loan cards has been declining for 11 consecutive quarters, with a total of 715 million cards as of Q2 2025, down 6 million from the previous quarter and 12 million from the end of last year [7][9] - The average number of credit cards held per person has also decreased, reaching 0.52 cards in 2024, down 3.7% year-on-year [7] - The decline in credit card numbers is attributed to banks' ongoing efforts to clean up "sleeping cards" and address rising overdue credit card debts, which reached 123.964 billion yuan by the end of 2024, a year-on-year increase of 26.31% [8][9] Group 3: Credit Card Business Model Changes - Many banks are closing credit card centers due to high fixed costs and market saturation, shifting to a localized comprehensive service model [9][10] - The new model integrates credit card services into broader financial offerings, allowing banks to provide a one-stop service for savings, loans, and investments [9][10] - Analysts predict that the credit card business will increasingly focus on digitalization and ecosystem development, emphasizing quality over quantity in customer acquisition [10][11]