A Study On The Business Innovation Of Debit Card Payments In China

Bank card industry, which is a organic combination of the traditional financial business and modern information technology, has arisen as a new financial services industry along with the information and economic development trend. In recent few years, China's bank card industry has been developing rapidly, bank card amount has kept sustained growth. As the most frequently used instrument of the non-cash electronic payment, debit card has developed into a new payment tool with multiple functions such as depositing, bank settlement, cash withdraw, transfers, consumption and financing. It occupies an important position in the field of personal settlement and payment. With the development of electronic commerce,the requirements for safety, convenience, and the speed in payment has kept growing. Debit card is becoming the main carrier of personal financial services, so commercial banks should innovate debit card payment services according to the needs of market and customer. The innovation of debit card payment service has been significantly increasing the profitability of banks, facilitating people's daily pay, stimulating consumer demand, improving the efficiency of payment, reducing transaction costs, and improving the transaction security.According to the practice use of debit card, this article points out that the transaction security and convenience of debit card are the two major problems in China. Specifically, the rates of debit card crime is growing as a result of the easy duplication of debit cards due to the poor security in magnetic stripe. The limitations of online payment prevents the debit card business development, and the rapid development of commercial prepayment card also has a great negative impact on the development of debit cards.Our study finds that the innovation of debit card and the creativity of payment tools are the main ways to overcome the above problems. On the one hand, commercial banks should issue the Union Pay PBOC2.0 IC debit card and bank's prepayment card because of its convenience and its advantages in micro-payments. On the other hand, in order to meet the need of E-commerce development which is a faster, safer and more convenient way in payment, this article also proposes some suggestions in the innovation of online and mobile payment. This article is expected to offer a new perspective to Chinese debit card development to provide some advices to make an increase in profits and the retail business income, to cultivate the ability to meet market demand and the consumption of the holder, and to provide more fluent debit card environment to the customer.