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China opens its markets to foreign bank card companies 

Poised to be the largest population by 2020, Cashless Consumption is poised to get a big boost as global payment processing firms tap the China market. Analyzing how this impacts consumption and debt levels will factor into our Rise & Fall of the Middle class thinking.

China will allow foreign payment card companies to operate in the country under rules issued on Tuesday, potentially giving groups like Visa Inc (V.N) and MasterCard (MA.N) access to its 55-trillion-yuan ($8.4 trillion) card payment market.Visa and MasterCard, the world’s two largest credit and debit card companies, have been lobbying for more than a decade for direct access to China’s cards market, which is projected to become the world’s biggest by 2020.Bank card consumer transactions reached 55 trillion yuan in 2015, accounting for 48 percent of total social consumption, the People’s Bank of China said in a statement. The market is dominated by state-run China UnionPay Co Ltd.

Source: China opens its markets to foreign bank card companies | Reuters

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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