Bank Card On The Role Of The Chinese Retail Business

With the population of bank cards use in China, bank cards, as one of financial instruments, or essentially as an electronic currency, are changing the payment convention and consumption model in China. Retail which is highly connected with daily payment methods has become the industry impacted most directly by this trend. This paper applies the monetary theory, consumer behaviour theory and retail development theory to analyse the impacts of the development and multi-functions of bank cards, as a new monetary means, on the micro-subject and macro-industry of retail in respect of cash substitution, credit consumption, operation models and other areas. The paper also explores the potential functions of bank cards with regard to the interactive relationship between banks, retailers, consumers, and the connection between bank cards and retail development with the goal to accelerate the effective development of retail industry.This paper comprises five parts. Part One is background introduction, which presents the theoretical and practical meaning of the theme selected, introduces the related research papers and the research methodology employed in the paper. Part two exhibits briefly the variety and the origin of bank cards, and the current trend of bank cards in overseas market. Part Three shows the operation model of bank cards in retail, the monetary nature of bank cards, and the theoretical ground, including the electronics currency theory and consumer behaviour theory, of the relationship analysis between the operation model and the nature of bank cards, Part Four comprehensively demonstrates the impacts of bank cards on the micro-subjects—consumers and retailers, the positive effects on overall development of commercial retails in China, and the internal generators of those impacts. Part Five states the adverse factors that limit the actual operating and functioning of bank cards in local commercial retail, including the overall scale, market accepting bank cards, legal environment and related services. The underlying recommendations and suggestions are also submitted in the paper with regard to the issue, use and management of bank cards.