Wal-Mart bringing credit cards to China

The Financial Times reports today that Wal-Mart wants to issue credit cards to Chinese customers, as part of the company’s expansion plan for Asia.

The card would be issued by SDB, a mid-sized lender in the rapidly developing south of China, with support from GE’s consumer finance unit, which announced plans for a $100m investment in the bank last October.

GE Money is recruiting an account manager to handle Wal-Mart’s relationship with SDB, as well as a card product risk manager whose duties are described as lying “primarily with the Shenzhen Development Bank/Wal-Mart partnership product”.

Officials in Bentonville wouldn’t comment on the credit card plans.

Wal-Mart declined to comment on its partnership with SDB, saying it had not announced any plans in China to launch a credit card. “For obvious competitive reasons, we do not speculate on whether we have specific business plans,” a spokeswoman said.

The move to create a private-label credit card reflects Wal-Mart’s commitment to expand its operations in China, where it is rolling out its network of stores beyond the coastal regions to secondary inland cities.

• Click here to read more about Wal-Mart’s foray into banking in the U.S.
  

• Click here to read more about Wal-Mart in China.

*UPDATE* - Reader Andy points us to this study by McKinsey Quarterly on China’s expanding credit card market. As the study says, “The credit card market is one of the most enticing opportunities for banks looking to do business in China, and fast growth in usage and profitability is expected.”

Posted by Laura Jack on Monday, June 26, 2006

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