Citigroup issues branded credit cards in China

Citigroup (C.NYSE) issued credit cards under its own brand in the mainland, the first Western bank to do so without co-branding with a Chinese bank, as Beijing loosens restrictions, Bloomberg reported. Citigroup, the third largest lender in the US by assets, said the credit cards will be denominated in yuan or dollars and accepted worldwide. China UnionPay will process payments within China while MasterCard (MA.NYSE) and Visa (V.NYSE) will provide support for the cards abroad. The bank gained regulatory approval to issue the cards in February. “China’s credit card market is far from saturated; it’s just a matter of finding the right customer group and minimizing costs. Citigroup has its advantage in its IT system, product innovation and brand awareness, especially among high- end customers, while the disadvantage is its lack of distribution channels in China,” said Tang Yayun, an analyst at Northeast Securities. Citigroup will open its 50th retail branch this month and plans to double its locations within three years.