Magazines Archives - 2007 July
Global study: E-payments boom forecast for China
A GLOBAL study conducted by the Economist Intelligence Unit (EIU) for First Data International in China is positive that the Chinese e-payment market will grow over the next few years. The majority of its respondents reportedly look forward to the growth prospects of e-payments in the country.
The study gives valuable insight into the attitudes and experiences of bankers and merchants across the world as they address the rapidly-growing Chinese market, said First Data International president Nigel Lee.
Among them, retail bankers, in particular, are optimistic about opportunities in consumer banking, especially for credit cards and bank accounts. Over 200 million credit cards were issued last year and over one billion cards are now circulating nationwide.
While a sizeable 55% of respondents find these two products highly promising, 45% have faith in debit cards and 40% believe that wealth-and-investment management solutions will boom.
Although prospects look bright, bankers are aware that gains are unlikely to materialise anytime soon, with 43% of respondents expecting difficulty for the next three years.
Charles Goddard, editorial director for the EIU in the Asia-Pacific, said: It is clear from our study that banks want to tap the vast new customer base ... in China, although they are realistic about the challenges and risks involved.
Among the key movers highlighted in the study, infrastructure is deemed important to boost the growth of e-payments acceptability, with 83% of respondents agreeing that this factor is what will incline the market towards card payments. Banks will also need to find ways to encourage merchants to accept credit-card payments.
Educating consumers on the benefits of card payments and convincing them of the possibilities afforded by the convenience and flexible repayment schemes will also prove challenging, the study noted.