Wal-Mart is launching a new credit card in China. This is especially interesting because China seems to really be a cash economy. According to the Wall Street Journal’s article, less than 5% of Chinese consumers have credit cards. Most people I know here are paid with envelopes of cash.
The Wall Street Journal says that Wal-mart’s new card is a joint venture with China’s Bank of Communications. The card is a regular credit card that can be used both in China and abroad, but users will also receive Wal-Mart discounts. If this goes well, it could facilitate currency exchange for expats and travelers by offering a dual-currency credit that works easily in both countries. If not, then Bank of Communications and Wal-Mart will soon be yet another place to hear the foriegner mei you.
Wal-Mart, credit cards… soon China will have all the comforts of home!
In case you missed it: Chinese Wal-mart forms a union.