The number of credit cards in mainland China continues to decline, according to data from the People’s Bank of China. As of the end of the first quarter of 2026, the total number of credit cards and combined debit cards has dropped to 687 million, a decrease of approximately 120 million from the peak in the third quarter of 2022, reverting back to the level of 2018.
Reported on May 18th by “First Financial”, the People’s Bank of China recently released the overall situation of the operation of the payment system in the first quarter of 2026. Data shows that by the end of the first quarter of this year, there were a total of 10.261 billion bank cards opened nationwide, of which credit cards and combined debit cards amounted to 687 million, a decrease of around 9 million from the end of 2025.
Analyzing historical data, it is noted by “First Financial” that the number of credit cards in mainland China has returned to the level of 2018. Additionally, on May 19th, “21st Century Economic Report” indicated that the issuance of credit cards has been declining for 14 consecutive quarters. Compared to the peak of 807 million cards in the third quarter of 2022, the total number has decreased by about 120 million by the end of the first quarter of this year, with an average quarterly reduction of over 8 million cards.
Simultaneously with the decrease in credit card numbers, many banks are also reducing credit card benefits. Reported on May 18th by “Beijing Business Daily”, recently Agricultural Bank, Bank of Communications, Minsheng Bank, and Citic Bank, among other banks, have been adjusting the value-added benefits of credit cards, including flight delay insurance, points redemption, air mileage exchange, and exclusive offers for co-branded cards.
Minsheng Bank announced the termination of the services related to “recovery”, “care”, and “residence” credit card benefits starting from June 1st. Previously, Bank of Communications and Agricultural Bank also adjusted the benefits of certain high-end cards and air mileage exchanges.
In the past, banks often attracted customers with benefits such as airport VIP lounges, air miles, points redemption, and insurance services. Nowadays, amidst the decline in card issuance, these associated benefits are being gradually reduced.
Credit cards used to be a significant growth point in the retail business of Chinese banks. Many banks had been competing for customers through offline promotions, co-branded cards, shopping events, and high-end benefits, as well as establishing credit card centers to expand their operations.
“21st Century Economic Report” reported that around 2015, credit cards expanded rapidly alongside the upgrading of consumer spending and the transformation of retail banking. By the third quarter of 2022, the total number of credit cards nationwide had reached a historical peak of 807 million. Subsequently, the credit card industry entered a phase of continuous contraction.
The contraction of credit card business is also reflected in the adjustments made by offline institutions. According to Chinese media reports, since 2025, many bank credit card centers have ceased operations; some banks have also stopped issuing multiple credit cards, with co-branded and themed cards becoming the focal point.
“21st Century Economic Report” noted that the decrease in the number of credit cards is related to banks clearing out long-unused “dormant cards,” as well as changes in consumer willingness, the diversion to mobile payments, and strengthened risk controls.
Citing senior credit card expert Dong Zheng, “First Financial” stated that in the past, the credit card industry pursued “high quality, high benefits, high credit limits” during the growth stage. However, as the industry has transitioned to a phase of managing the existing customer base, this model has faced changes in the market environment, leading to a decreased attraction of credit cards to younger clientele.
In an article dated December 16, 2025, Phoenix Net Finance mentioned a report from “Titan Media” indicating that some young people are voluntarily canceling their cards or refraining from applying for new ones. The article highlighted that in recent years, some young people have unstable income expectations, leading to more cautious spending habits. Additionally, the popularity of payment tools like Alipay, WeChat installment plans, and digital wallets have covered many small, high-frequency spending scenarios, diverting the usage scenarios of credit cards.
As the credit card business contracts, the concern over the default rate of bank credit cards rises. “21st Century Economic Report” pointed out that with the decrease in the number of credit cards, the default rates of some bank credit cards have increased, prompting banks to expedite the disposal of related non-performing assets.
In an earlier report by “First Financial” in April this year, it was highlighted that the credit card business is facing pressure for “downsizing and exiting.” Some banks have stopped issuing multiple credit cards, while simultaneously enhancing the disposal of non-performing assets and the construction of collection systems.
Currently, adjustments to credit card benefits, suspension of card types, closure of credit card centers, and other situations continue to emerge.