China’s central bank has rolled out fresh incentives to boost consumer spending, including subsidies on interest for credit card installment payments. Yet newly released data show the number of credit cards in circulation continues to shrink.
According to the People’s Bank of China’s latest payment system report, the combined total of credit and debit cards nationwide stood at 677 million by the end of the second quarter of 2026 — down 10 million from the first quarter. The figure has now declined for 15 consecutive quarters, falling by 130 million cards from its peak of 807 million at the end of the third quarter of 2022.
Mainland media outlet Economic Daily attributes the drop to the rise of mobile payments and online credit. Where consumers once relied almost exclusively on credit cards for small transactions and everyday spending, apps like WeChat Pay and Alipay, along with lightweight credit tools such as Huabei and Baitiao, now integrate seamlessly into online shopping, food delivery, and ride-hailing — requiring no in-person application or approval wait. Analysts say this convenience has outpaced the traditional, paperwork-heavy credit card.
There has also been a cultural shift: overspending and buying on credit, once seen as markers of a better lifestyle, have fallen out of favor as many younger consumers grow wary of taking on debt.
To stimulate spending, Beijing began subsidizing interest on personal consumption loans last September, initially excluding credit cards. In January, credit card installment billing was added to the subsidy program, and its scope was expanded further in August. Under the policy, any credit card installment purchase now qualifies for interest subsidies, capped at 5,000 yuan (approximately US$745) per borrower, per lending institution, per year.
Source: Central News Agency (Taiwan), September 8, 2026
https://www.cna.com.tw/news/acn/202609080100.aspx