Postal Savings Bank of China (PSBC) has announced the integration of its standalone credit card app. On December 22, PSBC issued a notice stating that it will gradually cease updates for its independent "PSBC Credit Card App" and migrate all functionalities to the main "PSBC Mobile Banking App."

In fact, as early as November 15, the bank had already suspended new user registrations, card binding, and activation services on the standalone app. To ensure a smooth transition for users, PSBC introduced exclusive benefits in the credit card section of its main app, including a ¥228 WeChat cash voucher or Alipay red packet, while retaining core features such as bill installment, points redemption, and credit limit adjustments.

Notably, PSBC is not the first major state-owned bank to take such action this year. In September, Bank of China (BOC) became the first to shut down its standalone "COLOUR LIFE" app, integrating all functionalities into the main "BOC Mobile Banking App."

The shift from the proliferation of standalone credit card apps to their gradual shutdown signals the end of the high-growth era of aggressive market expansion in the credit card industry.

Around 2015, amid the mobile internet boom, banks launched standalone credit card apps to attract users and boost engagement through "finance + lifestyle" ecosystems. A decade later, as the credit card market shifted to a battle for existing customers, user growth plateaued, and customer acquisition costs rose. Standalone apps, burdened by functional overlap with main apps and low user engagement, became operational liabilities.

This trend aligns with regulatory guidance. In September 2024, the National Financial Regulatory Administration mandated financial institutions to optimize or terminate mobile apps with "low user engagement, poor experience, or redundant features," emphasizing a "fewer but better" approach over "more but fragmented" offerings.

Industry experts attribute the consolidation to cost efficiency and user experience improvements. Su Xiaorui, a senior researcher at Suxi Zhiyan, noted that credit card profitability has declined, making it difficult to justify the high development, maintenance, and compliance costs of standalone apps. Wu Zewei, a guest researcher at Jiangsu Bank, highlighted that a unified service portal prevents fragmented user experiences caused by switching between multiple apps.

This consolidation extends beyond apps to organizational and product strategies. In recent years, banks like Ping An Bank and China Minsheng Bank have restructured their credit card divisions, while Shanghai Rural Commercial Bank even dissolved its credit card department.

The shutdown wave is spreading rapidly. Besides PSBC and BOC, institutions such as Bohai Bank, Beijing Rural Commercial Bank, and Sichuan Rural Credit Union have either discontinued or plan to phase out standalone credit card apps, merging functionalities into their main mobile banking platforms.

On the product front, co-branded credit card issuance has also contracted sharply. In 2024, major banks—including ICBC, ABC, BOC, CCB, Bank of Communications, PSBC, China Merchants Bank, and Industrial Bank—halted nearly 100 co-branded cards. For instance, CCB and PSBC recently stopped issuing Bilibili and China Resources-themed cards, citing "business adjustments" or "product strategy optimization." Analysts note that banks are scaling back co-branded cards due to high partnership costs and low cardholder engagement.

Credit card benefits are also being trimmed. Since 2024, at least eight banks have reduced perks in travel, retail, beverages, video platform memberships, and insurance, reflecting a cost-benefit reassessment amid refined operations.

These changes underscore a structural shift in the credit card market. According to the People's Bank of China's Q3 2025 payment system report, the total number of credit cards in circulation fell by 20 million year-to-date to 707 million, marking a cumulative decline of nearly 100 million over three years. The industry has transitioned from "expansion" to "intensive cultivation" of existing customers.

In summary, credit card services are undergoing systemic restructuring—from app consolidation and organizational realignment to product streamlining. This shift from "land grabbing" to "precision farming" reflects a strategic upgrade focused on efficiency, user experience, and sustainability in a post-growth era. "Quality over quantity" has become the industry consensus, driving credit card services toward a more efficient, focused, and user-centric future.