Full Report

China's payment systems showed stable growth in Q3 2024, with continued increases in bank accounts and non-cash payment volumes. These developments are of significant relevance for global businesses and investors keen on understanding China's evolving financial landscape.

I. Bank Accounts and Growth Trends:

·Total Bank Accounts: As of Q3 2024, there were 14.812 billion bank accounts in China, with institutional accounts growing by 1.93%and individual accounts increasing by 0.79%.

·Institutional Accounts: Among 109 million institutional accounts, basic deposit accounts accounted for the largest share, making up 69.88%of the total.

·Individual Accounts: The total number of individual bank accounts reached 14.703 billion, reflecting steady growth in personal banking engagement.

II. Non-Cash Payment Instruments:

·Bank Cards: At the end of Q3 2024, 9.869 billion bank cards were in circulation, with debit cards increasing slightly, while credit cards and integrated cards saw a decline of 1.51%.

·Total Non-Cash Transactions: A total of 154.516 billion non-cash payment transactions were processed, totaling RMB 1.322 trillion.

·Consumer Payments: Transactions via bank cards amounted to RMB 33.62 trillion for consumer payments, with each bankcard processing RMB 3,406.38on average.

III. Electronic Payments and Mobile Transactions:

·Mobile Payments: 55.694 billion mobile payment transactions were processed, valued at RMB 129.96 trillion, confirming mobile payments' dominance in China's digital economy.

·Non-Bank Platforms: Non-bank institutions processed 344.877 billion online payment transactions worth RMB 81.87 trillion, highlighting the growing role of platforms like Alipay and WeChat Pay.

IV. Payment System Activity:

·PBOC CNCC Systems: The People's Bank of China's clearing systems processed RMB 2.287 trillion across various payment systems, with the China Foreign Exchange Payment System (CFXPS)seeing a remarkable 128.66%year-on-year growth.

·UnionPay Interbank System: 86.94 billion transactions were processed by UnionPay, totaling RMB 63.74 trillion, with a slight increase in transaction volume despite a decrease in transaction value year-on-year.

V. Cross-Border Payments:

·CIPS (Cross-border Interbank Payment System): The system processed 2.1363 million transactions worth RMB 46.97 trillion, reflecting a 40.57%year-on-year increase in value. This is a significant indicator of China's growing role in global cross-border payments.

VI. Implications for Global Stakeholders:

1.Increasing Mobile Payment Adoption: The dominance of mobile payments offers businesses new avenues to tap into China's digital economy, especially via mobile platforms.

2.Growing Cross-Border Payment Flows: The rising volume of cross-border transactions via CIPS presents opportunities for international firms to optimize their payment systems in China.

3.Strategic Investment in Payment Infrastructure: International businesses and investors must consider China's sophisticated and expanding payment systems when planning market entry or partnerships in the region.

Conclusion: China's payment systems are undergoing rapid digital transformation, with increasing non-cash transaction volumes and mobile payment adoption. For global stakeholders, understanding these developments is key to leveraging China's growing role in the international financial ecosystem.