Still using it! Credit cards bid farewell to the era of three highs: 1 out of every 7 cards is dormant or canceled

CryptoTech News, March 14 — Recent data released by the central bank shows that the total number of credit cards issued nationwide has dropped to 696 million. This marks the third consecutive year of decline and is the first time in recent years that the figure has fallen below 700 million, hitting a new low not seen in nearly seven years.

Along with the decrease in card issuance, there has been a widespread reduction in credit card benefits. Whether it’s the lowering of points redemption ratios or the cutting or cancellation of value-added services such as airport lounge access, free health checks, and roadside assistance, almost all mainstream benefits have been affected.

All signs indicate that credit cards are gradually moving away from the era of high issuance, extensive benefits, and high credit limits. Behind this industry adjustment is a shift in consumer mindset—some users are reducing their number of cards from dozens to just two, while others are shifting their spending focus entirely to internet-based credit products.

In response to these market changes, many industry insiders believe that it’s not accurate to say credit cards have fallen out of favor. In fact, what’s fading is more the physical credit card itself, while credit consumption is increasingly embedded in daily transactions through more discreet digital forms.

Regarding future development paths, industry experts suggest that credit card businesses must shift from blindly pursuing user growth to focusing on deepening existing customer relationships. How to enhance current users’ activity and loyalty through refined operations has become a core challenge for major banks in the next phase of competition.

Looking back at data from the past few years, the turning point for the credit card industry was actually set over four years ago. The number of issued cards has been shrinking since late 2022, decreasing by over 100 million in just three or four years. This means that, on average, one in seven credit cards is either dormant or canceled.

Along with the scale contraction, internal restructuring within banks is accelerating, with cost reduction and efficiency improvement becoming a common consensus. By 2025, 66 credit card centers—including those of Bank of Communications and China Minsheng Bank—have already ceased operations, with Bank of Communications leading the closures.

This widespread branch closure and benefit adjustment deeply reflect the survival strategies of financial institutions in the era of stock depletion. Credit cards are rapidly transforming from simple financial products into digital services. In this process, only service models that can precisely meet user needs will be able to continue thriving in the competitive landscape.