The Chinese payment card market: an exploratory study

The article is based on both secondary and primary research into the use of plastic payment cards in China. The secondary research offers an understanding of the history and current situation of payment cards in China, whilst the primary research provides insights into the uniqueness of the Chinese market from the perspective of card holders, card issuers and merchant acceptors. As barriers to entry into China remain high for foreign banks, particularly if they wish to pursue a branch centric approach to distribution, the article also draws attention to the advantages of a card centric approach to market entry. Other Asia‐Pacific markets such as Australia, Hong Kong, Korea and Japan have already embraced the plastic card as a means of payment at the point‐of‐sale. As a market, China has more potential than any other country in Asia‐Pacific, but more knowledge is required concerning the evolution to date of payment cards in China and the impediments that foreign entrants will face.