UnionPay, China's largest card-payment network operator, is struggling to stay relevant in an increasingly cashless economy, reports online news service Caixin. This is despite UnionPay's recent tie-up with online retailer JD.com Inc. Using smartphones to scan QR codes to make payments has seen an explosive growth in China. In the first quarter, such transactions grew 113 per cent from the same period a year ago to 2.27 billion yuan (US$337 million), according to consulting firm iResearch. WeChat Pay and Alipay, owned by Tencent Holdings Ltd. and Ant Financial Services Group respectively, accounted for a combined market share of 94 per cent, with JD Finance — the payment unit of JD.com — ranked sixth with a tiny market share of 0.8 per cent. The average net charge-off rate for large US credit card issuers increased to 3.29 per cent in Q2, up eight basis points quarter-on-quarter and up 44 bps year-on-year. This marks the highest level in four years and the fifth consecutive quarter of year-on-year loss rate increases, noted S&P in a new research paper. Banks started lending to high-credit borrowers in 2010, which began a period of very low charge-offs. In 2014, however, many lenders loosened underwriting standards - although, despite rising losses, the rate remains well below historical levels. In its paper, S&P forecast an increase in charge-offs under all economic scenarios over the next couple of years. HSBC is to buy back up to an additional US$2 billion in shares after better-than-expected earnings in the second quarter, the New York Times reports. The bank is based in London but generates much of its profit in Asia. Since 2015, HSBC has significantly reshaped its operations by shedding tens of thousands of jobs, selling underperforming businesses and shrinking its global investment banking business. HSBC reported a profit of US$3.9 billion in the second quarter, compared with $2.5 billion in the second quarter of 2016. It said profit before taxes was US$6 billion when adjusted to remove the impact of changes in currency and significant items, ahead of analysts' expectations.