Authorities reduced bank card fees for retail merchants on February 25, saving them over USD1 billion. The fees were cut by 37.5% for restaurants and entertainment service providers. The fees for other sectors were reduced by 22% to 24%. There were 3.5 billion bank cards in circulation issued by 338 banks by the end of last year. Card penetration measured by card payments over total retail sales of consumer goods reached 43.5%. “Fee incomes at the commercial banks and China UnionPay will be reduced over time, which exerts financial pressure on their card business. However in the long run, the adjustment will elevate bank card issuance and card penetration, and bring new opportunities to the bank card industry,” the People’s Bank of China (PBOC) said. The central bank wanted to boost the willingness of merchants to accept bank card payments as China strives to raise domestic consumption to power the economy.