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Credit Card Adoption And Usage In China: Urban–Rural Comparisons

Author

Listed:
  • NILTON PORTO

    (Department of Human Development and Family Studies, University of Rhode Island, Transition Center #212, 2 Lower College Road, Kingston, RI 02881, USA)

  • YU HUANG

    (Department of Market Research, Huarong Securities Co., Ltd, 15F, PICC Life Building, 18 North Chaoyangmen Avenue, Chaoyang District, Beijing, China, 100020, China)

  • JING JIAN XIAO

    (Department of Human Development and Family Studies, University of Rhode Island, Transition Center #202, 2 Lower College Road, Kingston RI 02881, USA)

Abstract

This study examines the differences in credit card behaviors between rural and urban households in China. Using data from a national survey of Chinese households, results show distinct differences between rural and urban respondents in credit card adoption and usage even after controlling for relevant demographic, financial, attitude, and expectation variables. Rural households are less likely to possess a credit card, possibly due to supply side limitations such as lack of financial institutions and low rate of credit card acceptance in rural areas. No urban–rural difference is found in credit card payment behavior. Implications for policymakers and credit card issuers are discussed.

Suggested Citation

  • Nilton Porto & Yu Huang & Jing Jian Xiao, 2019. "Credit Card Adoption And Usage In China: Urban–Rural Comparisons," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(01), pages 41-56, March.
    • Handle: RePEc:wsi:serxxx:v:64:y:2019:i:01:n:s021759081743010x
    DOI: 10.1142/S021759081743010X
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    References listed on IDEAS

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    4. Wang, Lili & Lu, Wei & Malhotra, Naresh K., 2011. "Demographics, attitude, personality and credit card features correlate with credit card debt: A view from China," Journal of Economic Psychology, Elsevier, vol. 32(1), pages 179-193, February.
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    Cited by:

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    2. Xu, Nana & Yuan, Yan & Rong, Zhao, 2022. "Depressed access to formal finance and the use of credit card debt in Chinese SMEs," China Economic Review, Elsevier, vol. 72(C).

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