Who Wiped Out 100 Million Credit Cards?

Can you believe it? Credit card numbers have dropped by 100 million in just three years. The latest central bank data reveals that the total number of credit cards in circulation fell from 807 million at the end of June 2022 to 707 million by June 2025. Meanwhile, the non-performing loan (NPL) ratio for credit cards climbed to 2.40% by mid-2025, hitting a multi-year high. What’s really behind this quiet "great credit card retreat"?

First, consider this stark reality: Over a dozen banks have shut down their credit card apps this year alone. This includes major state-owned banks, joint-stock banks, and even leading city commercial banks—all closing their dedicated credit card apps. Some might wonder: Does this mean debts are forgiven? Not a chance! These banks have simply integrated credit card services into their broader digital platforms.

So, what’s driving this shift? Official statements cite "optimization" and "service upgrades," but these are just polished corporate phrases. The real reasons likely boil down to these firsthand observations:

1. **Poor App Quality**: Many bank credit card apps are clunky, lack use cases, and offer terrible user experiences. Logins fail, apps crash, and beyond checking balances or making payments, they’re practically useless. They pale in comparison to Alipay or WeChat Pay in functionality.

2. **Profitability Crisis**: Credit cards are no longer the cash cows they once were. The NPL ratio for the entire banking sector surged from 1.19% in early 2022 to 1.43% by late 2024, then spiked to 2.4% by Q2 2025. Bad loans are eating into profits. For instance, China Everbright Bank sold off ¥11.5 billion in bad debt for just ¥594 million in 2024—a ¥10.8 billion loss, equivalent to 25.9% of its annual net profit.

3. **Midlife Crisis vs. Disruptors**: Credit cards now face a "midlife crisis" just as consumer finance—the "barbarian at the gate"—explodes. - **Speed**: Consumer loans approve in minutes; credit cards take days or weeks. - **Use Cases**: Consumer finance embeds seamlessly into shopping, travel, and education, while credit cards remain standalone payment tools. - **User Appeal**: Consumer finance targets youth and those with thin credit files; credit cards favor stable earners.

This "great retreat" reflects regulatory pressure to curb risks, but fundamentally, it’s a market reshuffle where consumer finance is outmuscling traditional credit cards. As for that decade-old credit card in my wallet? It’s long been gathering dust.