Su said he hoped 60 per cent of businesses with annual sales exceeding 1 million yuan(US$125,000) and a quarter with sales below that figure would accept cards by this date.

The bankcard transaction volume hit 47 trillion yuan(US$5,875 billion) last year, of which 960 billion yuan(US$120 billion) accounted for goods and services bought using cards.

Consumption conducted using bankcards accounts for 10 per cent of the nation's total retail sales, up from 2.1 per cent in 2000.

The country wants 30 per cent of its retail sales conducted using bankcards in medium-sized and large cities by 2008, the central bank's vice-governor said.

China now has 390,000 businesses and 610,000 sales machines that can accept bankcard payments.

Another 23 financial institutions were approved to issue bankcards last year, bringing to 175 the number of issuers.

They have so far issued a total of 960 million bankcards, which include debit cards and credit cards.

China will take measures to regulate the issuance and acceptance of bankcards in a bid to orchestrate orderly growth of the sector.

Any newly-issued Chinese currency bankcards, for example, must be able to be accepted by other banks and bear the logo of China UnionPay, the only national bankcard payment network, Su said at a conference.

The top central bank official also called for local banks to prepare for challenges coming from foreign banks.

"The bankcard business is set to become more fierce by the end of this year when the banking industry fully opens up," Su said yesterday.

A total of 1,835 criminal cases involving bankcards were reported and investigated last year, said Zheng Shaodong, assistant minister of public security at the conference.

(Source: China Daily)