Analysis of the Development Status of China's Smart Card Market in 2016

Release time:2018-04-10 09:54:37

Smart card is a general term for cards with embedded integrated circuit chips and chips containing microprocessors, storage units, and chip operating systems, also known as CPU cards. It has good functions such as data storage, command processing, and data security protection. Its main application areas include mobile communication, financial payments, public utilities, etc. The main types of smart cards include telecommunications cards, financial IC cards, ID cards, etc.

The development of China's smart card industry is rapid, and the driving force of communication smart cards and financial IC cards has become the main factor for the growth of the domestic market. According to the statistics of the National Gold Card Office IC Card Application Group and the Smart Card Special Committee of the China Information Industry Chamber of Commerce on member units above designated size, in 2014, China Telecom issued 300 million cards, an increase of 33%, and financial IC cards issued 260 million cards, an increase of 76%.

Sales volume of smart cards in China from 2010 to 2014

① Xin Smart Card

The number of mobile phone users in China has exceeded 1.3 billion, with 4G users accounting for over a quarter. 2G and 3G users are steadily transitioning to 4G users. With the upgrading of communication networks and the continuous growth of mobile phone users, the communication smart card market has great growth potential.

Number of mobile phones in China from 2002 to 2015

② Financial IC card

In 2015, the issuance of bank cards in China continued to maintain a sustained growth trend, the acceptance environment continued to improve, and the transaction volume steadily increased. As of the end of the third quarter of 2015, the number of bank cards in use and issued nationwide was 5.252 billion, a year-on-year increase of 10.66%. Among them, the number of debit cards issued in use was 4.803 billion, a year-on-year increase of 11.42%; The total number of credit cards and combined debit and credit cards issued is 449 million, with an average of 3.85 bank cards per person nationwide. Due to its superior information security, anti-counterfeiting, and storage capacity compared to magnetic stripe cards, financial IC cards that comply with EMV and PBOC standards are an inevitable trend in the development of bank cards. According to UnionPay data, as of the end of the third quarter of 2015, a total of 1.883 billion financial IC cards had been issued nationwide, an increase of 13.98% compared to the previous quarter, accounting for 34.62% of bank card issuances, with over 200 million cards issued for three consecutive quarters.

The integration of innovative payment models and financial IC cards will further promote the issuance of financial IC cards. Innovative payment modes such as Alipay wallet, WeChat payment, Apple Pay, etc. are based on the application expansion of physical financial IC cards, providing users with convenient, fast and simple micro payment methods. With the promotion of this mode, the demand for financial IC cards will also be greatly promoted.

Related report: Analysis Report on the Operation Situation and Development Prospects of China's Smart Card Market from 2016 to 2022, released by China Industry Information Network