Current estimates show that roughly 100 Million credit cards have been issued within Mainland China. Unlike automated systems in the United States, which rely on personal credit scores from credit bureaus, applicants are considered through a highly manual process in which workers verify each record of information. While slow, the system is used to make certain that credit is only issued to those who can truly afford it.
Some analysts forecast that China has the potential to issue a total of 1 Billion credit cards by 2015. Such growth comes on the heals of credit card companies in the US reducing the number card holders due to rising delinquency rates or missed monthly payments. In China, however, the government forces a credit card holder to pay a full balance off immediately if they miss two credit card payments in a row. Delinquent account holders are also slapped with steep penalties and if these aren't paid right away, the card holder is subject to public notice through newspapers or advertisements.
American Express recently reported that Amex cards are used 3 times more than other dual currency cards. American Express credits their market penetration to being close to the Chinese market. It seems that credit cards in China could be the next major opportunity for credit card companies to offset losses here in America. Other Resources: