Summary of Key Points Core Viewpoint - The central theme of the news is the analysis of the payment system's performance in China for the second quarter of 2025, highlighting trends in card usage, transaction volumes, and the ongoing decline in credit card numbers. Group 1: Card Issuance and Trends - As of the end of Q2 2025, a total of 10.068 billion bank cards were issued nationwide, reflecting a quarter-on-quarter increase of 0.68% [5][4] - Among these, debit cards accounted for 9.354 billion, with a quarter-on-quarter growth of 0.81%, while credit cards and combined lending cards totaled 0.715 billion, showing a decline of 0.83% [5][4] - The number of credit cards and combined lending cards decreased by 6 million from the previous quarter and by 12 million from the end of last year, marking a decline of over 11% from the peak of 8.07 billion in 2022 [8][11] Group 2: Transaction Volume and Trends - In Q2 2025, the total number of bank card transactions reached 146.662 billion, with a total transaction amount of 226.7 trillion yuan, representing a quarter-on-quarter increase of 12.9% in transaction volume but a decrease of 12.06% in transaction value [6][4] - Notably, the number of transactions for transfer and consumption increased significantly compared to Q1, while the number of cash deposit and withdrawal transactions declined by 18.24% and 18.77%, respectively [6][4] - The number of ATMs decreased to 775,700, down 2.12% from the previous quarter, continuing a trend of decline since reaching a peak of 1.1108 million ATMs at the end of 2018 [6][4] Group 3: Electronic Payment and Non-Bank Payment Institutions - In Q2 2025, banks processed 80.053 billion electronic payment transactions, amounting to 85.816 trillion yuan, with online payments accounting for 18.217 billion transactions and 70.785 trillion yuan [6][4] - Non-bank payment institutions handled 333.845 billion network payment transactions, totaling 8.211 trillion yuan, indicating an increase in transaction scale despite a year-on-year decline in transaction volume [6][4] Group 4: Credit Card Market Adjustments - The credit card market has seen significant adjustments, with several banks announcing changes to high-end credit card products, including increased usage thresholds and adjustments to benefits [14][15] - The trend of declining credit card numbers is attributed to banks' ongoing efforts to manage "sleeping cards" and the increasing challenges in credit card asset quality and profitability [11][15] - The industry is shifting from a focus on card issuance growth to enhancing user experience and lifecycle value, with an emphasis on digital transformation and risk management [12][15]