The adoption and usage of credit cards by urban‐affluent consumers in China

Purpose – The purpose of this paper is to present exploratory research into the holding and usage of credit cards by a distinct segment of the Chinese population, who are “early adopters” of this product. Design/methodology/approach – Primary data collection using survey methodology. A sample of the urban-affluent population in China was utilized to gauge preferences and attitudes towards the use of credit cards. Findings – The respondents were comfortable with the holding and use of credit cards and particularly recognised their value for spending on travel and entertainment. The research also identified purchase trigger points, which indicated that the use of credit cards for purchases above certain value was already prevalent with this sample of urban-affluent Chinese consumers. Research limitations/implications – The sample was drawn from a narrower base than the actual target population of urban-affluent market, but an available and valid respondent set, which offers insights into the “early-adopters” of the credit card product in China. Practical implications – Hitherto there has been a very limited amount of research into payment cards in China and yet with the market for financial services opening up in China from 2007, this research is timely both for domestic Chinese banks wishing to issue credit cards and for foreign entrants, seeking to enter the Chinese market via their expertise in credit cards. Originality/value – The paper presents focused research on the attitudes towards credit cards, with the urban-affluent consumers, who are the most likely early-adopters of this product.