SHENZHEN Ping An Bank Co plans to team up with 10,000 convenience stores in Beijing and Shanghai this year to accept credit card payments, to make up for its limited branch network.
The bank is one of the first to tap into the convenience store network, and the move will also cut queues in banks.
The Shenzhen-based bank will team up with Beijing Lakala Billing Service Co to set up facilities at convenience stores in the two cities.
Convenience stores under Lianhua Supermarket Holdings Co will be the first chain to accept credit bill payments from the end of this month.
The bank is a relatively small player, with 49 outlets in Shanghai, Shenzhen in Guangdong Province and Fuzhou in Fujian Province.
The limited branch network forced the bank to seek new ways to reach into the deepening pockets of the credit card business.
Credit cards will be the most important consumer credit product after mortgages in China, with profit set to reach US$1.6 billion by 2013, accounting for 22 percent of total consuming credit profits, McKinsey & Co said earlier.
A convenient method of payment, a 72-hour guarantee against lost cards, and insurance on home and travel are some of the bank's selling points on its credit cards.
The bank is leveraging the insurance strength of parent Ping An Insurance (Group) Co, the country's second-biggest insurer, to expand its banking business.
Some of Ping An Insurance's agents will also help sell credit cards when selling policies, as cross-selling among universal financial holding companies is becoming more popular.