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In recent years, credit facilities, especially credit cards, are increasingly used to pay for all types of commodity regardless of the price (Fianu 1998; Soman 2001; Chakravorti 2003). Credit cards have almost replaced the use of cash and personal cheque among contemporary societies of the 21st century.

With 1.3 billion people and a 10.8% GDP growth rate in 2007, China has been targeted as the most important market of different global corporations. While the financial institutions have just started to develop their credit card business in China, more and more foreign financial institutions are turning their attention on it. Nowadays, China is certainly ready for the credit card business and has become the credit card market with the greatest potential in the world.

After the first Chinese domestic credit card was launched by Bank of China in June 1985, more and more citizen own credit cards and are already establishing their credit history. The use of credit cards as a readily available source of funds to finance consumption is steadily on the rise. In 2007, more than 33 million credit cards have been issued in China.
Hence, credit cards are already the fastest-growing consumer credit product in China, and all signs point to explosive growth in card usage and profitability over the next decade.
Economists forecast, by 2013, China's consumer credit market—encompassing credit cards, mortgages, and other personal loans—will account for 14 percent of profits in the banking sector, up from just 4 percent today.
This huge potential profit would inevitably attract the global financial institutions to come into China.

Credit card business

Not only has credit card shopping created a new marketing provider that meets consumer needs and wants, but it has changed the consumer shopping culture and ease of information searches for product or service buying.
It is the credit card business that can bring higher profits and future potential to commercial banks. With Chinese financial market open gradually, domestic banks begin to compete in the retail banking business, and the credit card business has become an important business of banks.

For Consumer Banking, most of the banks in China offer a full array of banking services from conventional transactional, foreign exchange and cash services, to deposits, loans, investments, consolidated banking, insurance and electronic banking services to meet the various banking needs of their individual customers(Wang & Sun,2007) .

Credit card provides consumers with greater control of payments, convenience, and transaction speed. Nowadays, credit cards seem to be the easiest way to purchase things. If people want buy something but don't have the cash, they can just charge it. A credit card provides an option to borrow that a cardholder can exercise only when it best serves his/her interest. A cardholder may exercise the option for convenience or for credit purpose. A convenience user pays the balance when the bill is due, but a credit user revolves the balance and pays interests.

Credit cards are not that easy almost in every country. Once people are approved for a card the company gives them a credit limit, which is proportional to their income.
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