This is due to the high cost of IC cards and the delay in the replacement of credit card chips (EMV migration) in China. However, according to the deployment of the central bank, commercial banks will no longer issue pure magnetic stripe cards, but will replace them with financial ic cards with both magnetic stripe and chip.

Financial IC card, also known as chip bank card, is a bank card with chip as the medium. The chip card has a large capacity and can store information such as keys, digital certificates and fingerprints. Its working principle is similar to that of a microcomputer, which can handle multiple functions at the same time, providing cardholders with the convenience of using one card for multiple purposes.

Financial IC cards are financial instruments issued by commercial banks (credit cooperatives) or payment institutions, which adopt integrated circuit technology, follow the national financial industry standards, have all or part of financial functions such as consumer credit, transfer settlement, cash deposit and withdrawal, and can have other commercial services and social management functions.