by HOU Ruining

More than 40 credit card sub-centers have been approved for closure so far in 2025, according to International Financial News. Bank of Communications has led the retreat, shuttering 34 locations since January, including four this month. Minsheng Bank and China Guangfa Bank have also closed multiple regional centers.

Analysts say the move reflects the industry's shift from rapid expansion to fierce competition over existing users. As customer acquisition costs rise and margins tighten, banks are under pressure to reduce expenses and streamline operations.

Once a booming segment, China's credit card business is now feeling the strain from digital consumer lending and tighter regulatory oversight. According to the central bank, the combined number of credit cards and credit-debit combo cards in circulation fell to 721 million in the first quarter of 2025—down 6 million from the end of 2024 and 79 million below the 2021 peak. The combined total has declined for three consecutive years.

Usage is also weakening. China Merchants Bank reported an 8.2 per cent drop in credit card transaction volume last year, while non-interest income from the business fell over 11 per cent.

At the same time, delinquencies are rising. Outstanding credit card debt overdue by more than six months hit 123.96 billion yuan at the end of 2024, a 26.3 per cent increase year-on-year.

In response, banks are scaling back perks. China Construction Bank has cut airport lounge access and emergency services on several high-end cards, while other lenders have reduced mileage conversion benefits.

Observers say the industry is shifting toward refined, risk-aware credit strategies and greater digital integration.