China to Pass U.S. as Top Credit Card Market in 2020, Mastercard Says
China will overtake the U.S. as the largest market for credit cards by 2020 with about 900 million cards in circulation, according to Mastercard, Inc. the world’s second-biggest payment network.
Chinese credit cards will probably increase by an annual 11 percent in number and 14 percent in transaction value until 2025, MasterCard said in a statement in Shanghai today. Issuers’ revenue will jump 20 times by 2025 and profit may grow 30 times.
China will have about 1.1 billion credit cards by 2025, compared with 230 million now, Chen Bin, vice president of MasterCard’s China unit, said at a press conference in Shanghai today. Transaction value will likely surpass the U.S. to $2.5 trillion by 2025, Chen added.
There is little risk of a credit-card crisis in China because of government policy and bank prudence, said Ling Hai, MasterCard’s regional president.
Story by Luo Jun for Bloomberg News