Terry Xie, Director of Mercator Advisory Group's International Advisory Service and principal analyst on this report comments, "Although some challenges still exist in China's credit card industry today, it is quite hopeful that most large credit issuers in China could realize profits within 2 to 3 years by adjusting some of their market strategies. The market as a whole continues to grow and conditions continue to improve making profitability in the credit card business highly possible."        

The most recent report from Mercator's International Advisory Service provides both qualitative and quantitative analyses on the profitability of China's credit card issuing market. This report also provides key insights on how to realize long-term profitability in the market, based on the current state of and trends in China's payment card industry, regulatory issues, Chinese consumers' income and behavior, and competing issuers' strategies.    

Report Highlights:

• China's credit card market continues to enjoy rapid growth in 2007, as the number of credit cards will likely double and purchase volume might increase by about 40 percent from last year.
• Multiple challenges still exist -- low revolving balances, low interchange fees and intense competition, among other factors, have hindered the industry's profitability as a whole. And as the prime market becomes increasingly saturated, issuers will find it difficult to sustain the high growth rates they have enjoyed so far.
• Issuers need to readjust the focus of their strategies in order to maintain a balance between growth and profits. Innovation, market segmentation and product differentiation will be key in market competition in the next 5 years and will determine if China's credit card issuers could realize profitability.
• This report provides both qualitative and quantitative analyses on the profitability of China's credit card issuing market. This report also provides key insights on how to realize long term profitability in China's credit card issuing market, based on the current state of and trends in China's payment card industry, regulatory issues and Chinese consumers' income and behavior, and competing issuers' strategies.

The report contains 30 pages long and 7 exhibits.

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