Core Insights - The credit card market in China is experiencing a significant contraction, with major banks reporting a total credit card loan balance of 7.56 trillion yuan, a decrease of nearly 200 billion yuan since the beginning of the year [1] - The number of credit cards has been declining for 11 consecutive quarters, with a total of 715 million cards as of the end of Q2, down 6 million from Q1 and 12 million from the end of last year, marking an 11.4% decrease from the peak of 807 million in 2022 [1][2] - Regulatory tightening has accelerated the shrinkage of the credit card industry, with new guidelines set to fully take effect in July 2024, emphasizing the need for banks to focus on customer value rather than merely increasing card issuance [2][4] Industry Trends - The shift towards digital payment platforms like Alipay and WeChat Pay has significantly impacted credit card usage, as these platforms integrate financial services with payment solutions, creating a seamless user experience [2][3] - Young consumers are increasingly abandoning credit cards in favor of internet-based credit products, reflecting a profound change in digital financial consumption habits [4] - The banking sector is moving from a growth model focused on card issuance to a more refined approach that emphasizes customer engagement and loyalty [4] Future Outlook - Despite the decline in credit card usage, there remains an important role for credit cards in meeting diverse financial needs, especially in the context of policies aimed at boosting domestic consumption [4][5] - Banks are encouraged to develop customized products for younger consumers and enhance service experiences to adapt to changing consumer preferences [4][5] - The future of credit cards should evolve into comprehensive financial service platforms that integrate credit management, financial planning, and consumer rights [5]

今年8月，家住上海的郑女士接到一家银行信用卡的客服电话，建议她将该月的账单分期，并且现在可 以赠送一张分期"打折券"，打折后的年化费率在4%左右。 郑女士有些疑惑，自己的还款状态良好，为何会接到建议分期的电话？与身边人讨论后了解到，不少人 都有类似的经历。 她的一位朋友持有国有大行的信用卡，最近每月的还款提醒短信中都提示："您可以为本期账单办理账 单分期"。 硬币的另一面是，信用卡行业正在进行的"瘦身"调整，不少银行选择调整关闭信用卡分支机构。据记者 不完全统计，今年以来有超40家银行信用卡分中心获批关停。 素喜智研高级研究员苏筱芮对经济观察报表示，银行对信用卡权益、产品及分中心开展密集调整，因为 当前信用卡行业面临信用消费市场竞争日益激烈、信用资产有所承压、金融消保工作不断细化等考验， 站在了转型变革的十字路口。 多位研究人士提到，信用卡已经从"增量获客"进入到"存量竞争"时代。 苏筱芮认为，信用卡行业存量竞争阶段，也是数字科技日新月异的阶段，利用大数据、人工智能等新技 术为传统信用卡业务提质增效是其中的机遇，但信用卡资产质量承压、互联网信用支付类产品愈发深入 使用的大环境之下，信用卡确实面临一些"内忧外患 ...

Core Insights - The credit card industry is undergoing significant changes, with banks actively promoting installment payment options while simultaneously closing credit card branches due to competitive pressures and declining credit card usage [2][8][9]. Group 1: Industry Trends - Many banks are encouraging customers to use installment plans for their credit card bills, offering promotional rates around 4% annualized [2]. - Over 40 banks have closed credit card branches this year, indicating a trend towards consolidation and a focus on core operations [8]. - The credit card market is shifting from "customer acquisition" to "existing customer competition," reflecting a more challenging environment for banks [2][3]. Group 2: Financial Performance - Credit card issuance has declined, with a drop of approximately 4 million cards year-over-year, marking a 5.14% decrease [9]. - Several banks reported rising non-performing loan rates in their credit card portfolios, with Minsheng Bank at 3.28% and Shanghai Pudong Development Bank at 2.45% [5]. - Credit card transaction volumes are also decreasing, with major banks like China Construction Bank and Industrial and Commercial Bank of China reporting declines in credit card spending [11]. Group 3: Strategic Adjustments - Banks are focusing on risk management and targeting high-quality credit users for installment offers, rather than those who typically pay in full [5]. - The industry is increasingly leveraging digital technologies such as big data and AI to enhance traditional credit card services [3]. - There is a push towards product innovation and integrating various financial services to improve customer retention and profitability [10][12].

Group 1 - The credit card business is currently focused on cost reduction and efficiency improvement, with a shift towards a stock competition era where product benefits are diminishing [1][4] - A state-owned bank announced that starting from September 14, 2025, litigation-related fees due to overdue credit card accounts will be included in the statement of the involved credit cards, which includes various fees such as litigation fees, arbitration fees, and others [2][3] - The People's Bank of China reported a decline in the total number of credit cards issued, with 727 million cards as of the end of 2024, a year-on-year decrease of 5.14% [3][4] Group 2 - Over 40 bank credit card centers have been approved to cease operations this year, indicating a significant shift in the credit card market from growth to stock competition [4] - The competitive landscape for credit cards is intensifying, with traditional banks facing pressure from emerging fintech companies that offer similar consumer finance products, leading to a reduced reliance on credit cards by consumers [4] - The role of credit cards is evolving, as mobile apps are increasingly used to connect with retail customers, diminishing the traditional utility of credit cards in customer data accumulation and cross-selling [4]

Core Viewpoint - The credit card industry in China is experiencing a significant transformation, shifting from expansion to a focus on quality and efficiency, as evidenced by the increasing number of banks discontinuing co-branded credit card products [12][19]. Group 1: Market Trends - Since January 1, 2025, at least seven major banks have announced the discontinuation of at least 22 co-branded credit card products, indicating a trend of product adjustments in the credit card market [2][6]. - Major banks, including China Bank and Citic Bank, have stopped issuing various co-branded credit cards, with reasons primarily cited as "business adjustments" or "contract expiration" [4][6]. Group 2: Product Adjustments - Co-branded credit cards, which are partnerships between banks and profit-oriented institutions, are being phased out due to their unsustainable cooperation models and imbalanced overall returns [9][10]. - Banks are transitioning to standard credit cards for existing co-branded cardholders, with changes in reward structures and benefits [4][6]. Group 3: Regulatory Environment - The regulatory framework has tightened, with new guidelines from the former CBIRC and the People's Bank of China mandating banks to focus on quality over quantity in credit card issuance [10][12]. - The new regulations require banks to limit the ratio of dormant credit cards to no more than 20%, prompting a reevaluation of credit card strategies [10][12]. Group 4: Consumer Behavior - The credit card market is increasingly catering to younger consumers, who have diverse interests and consumption needs, necessitating banks to innovate and tailor products accordingly [18][19]. - The decline in credit card issuance and usage reflects a broader trend of market saturation and the need for banks to refine their customer engagement strategies [12][13]. Group 5: Future Outlook - The discontinuation of co-branded credit cards is seen as a necessary step towards a more refined and efficient credit card business model, focusing on high-value customer segments and innovative product offerings [15][19]. - The industry is expected to evolve towards precision marketing and enhanced customer experiences, leveraging digital technologies and data analytics [7][19].