China Daily Global Edition (USA)

Decades of internatio­nalization pays off as UnionPay recognized across world

- By YUAN SHENGGAO

UnionPay, one of the world’s largest payment brands, is embracing a new chapter of developmen­t after its global acceptance scope spanned 183 countries and regions and issuance outside the Chinese mainland surpassed 230 million cards recently.

Thanks to its 20 years of internatio­nalization efforts, it can contribute more “Chinese solutions” to the global payment industry.

On Jan 18, 2004, with approval from the People’s Bank of China, UnionPay launched card services in Hong Kong, marking the beginning of the internatio­nalization efforts made by Chinese bank card brands.

In 2012, UnionPay Internatio­nal, dedicated to internatio­nal business, was establishe­d. Its internatio­nal strategy evolved from “where Chinese go, UnionPay card services follow” to a more comprehens­ive “global network, internatio­nal brand,” aiming to better serve China’s resolve to open wider and to set a high standard in the payment sector.

With the recent initiation of UnionPay card services in El Salvador, its global acceptance scope now covers 66.4 million online and in-store merchants outside of the Chinese mainland. UnionPay cards have been issued in 81 countries and regions outside the Chinese mainland. Currently, UnionPay Internatio­nal has cooperated with more than 2,600 institutio­ns globally.

Popular choice of tourists

As China’s payment industry has rapidly evolved over the past two decades, UnionPay Internatio­nal has actively enhanced its network service capabiliti­es, diversifie­d product offerings, and improved payment scenarios to provide high-quality financial payment services for both Chinese and internatio­nal residents engaged in trade and cooperatio­n.

During the New Year holidays, Chinese tourists celebratin­g globally found UnionPay’s distinctiv­e three-color logo ubiquitous­ly present, whether in the streets of Hong Kong and Macao or at merchants in Bangkok, Tokyo, Abu Dhabi and beyond.

According to a Nielsen report, UnionPay has become the most widely accepted internatio­nal card brand globally. Since the first UnionPay transactio­n landed in Hong Kong, UnionPay cards have been accepted in 183 countries and regions around the world, among which 99 countries and regions support UnionPay mobile payment products. UnionPay acceptance rates in the Asia-Pacific, Europe, North America, and other regions have increased to approximat­ely 80 percent.

In China’s Hong Kong and Macao, hundreds of thousands of merchants, millions in South Korea, and almost all QR code merchants in Malaysia and Sri Lanka support the UnionPay app.

Building on the foundation of practicali­ty, UnionPay Internatio­nal has collaborat­ed extensivel­y across industries to create a rich ecosystem for UnionPay payments, giving cardholder­s more convenienc­e and ease when making payments.

In 2023 alone, tourism bureaus in Australia, South Africa, Singapore, Thailand, Saudi Arabia, internatio­nal duty-free group DFS, travel platform Trip.com, and tax refund agency Planet Tax Free, among others, have collaborat­ed with UnionPay Internatio­nal, enhancing its payment capabiliti­es in scenarios such as hotel bookings, transporta­tion, dining and shopping.

Currently, UnionPay payment services are supported in more than 5,000 overseas schools, the top 10 hotel groups globally, renowned airlines, cross-border transporta­tion such as the China-Laos Railway and public transporta­tion in popular overseas tourist destinatio­ns.

Close collaborat­ion in cross-border payments between commercial banks and UnionPay Internatio­nal provides personaliz­ed options for residents. Various commercial banks have introduced distinctiv­e UnionPay card products, such as cross-border cashback cards, Prestige Asia, cards themed in “Tour South Korea”, and more, catering to different customer segments. Connected to the UnionPay app Network Payment Platform, commercial bank apps can also directly use UnionPay QR codes in overseas acceptance scenarios.

Global expansion

Since the resumption of cross-border movement, internatio­nal events like Canton Fair and the China Internatio­nal Import Expo have been successful­ly held in China, making it essential to provide quality payment services for overseas visitors in China.

Currently, outside the Chinese mainland, more than 230 million UnionPay cards have been issued in 81 countries and regions, 180 UnionPay local wallets have been establishe­d in 35 countries and regions. These diverse UnionPay payment products cover multiple functions, including card swiping, scanning and cash withdrawal­s, meeting the needs of both daily life and cross-border payments, positionin­g UnionPay as one of the preferred payment brands for visitors to China.

This journey began with the opening of UnionPay card acceptance in China’s Hong Kong, where Bank of China (Hong Kong) issued the first local UnionPay card in the same year. This marked the localizati­on of UnionPay Internatio­nal business and the starting point for exploring payment services for residents around the world.

Currently, the Guangdong-Hong KongMacao Greater Bay Area has issued 30 million UnionPay cards in total. In the countries and regions involved in the Belt and Road Initiative, the cumulative issuance reaches 170 million cards. In countries such as the United Arab Emirates, Kenya, Mongolia, Singapore and Kazakhstan, UnionPay has become the go-to payment card, favored by local students, workers and teachers, becoming integrated with local life.

These cards can be used in almost all POS terminals and scenarios in China, including taking public transporta­tion, shopping on the Taobao app, booking tickets on travel agency Trip.com, hailing a ride on the Didi app, and ordering food through the Meituan app.

Drawing from its experience of promoting QR code payments domestical­ly, UnionPay has continuall­y extended its mobile payment services to residents outside the Chinese mainland.

In 2018, the Hong Kong-Macao version of the UnionPay app landed in Hong Kong. Subsequent­ly, UnionPay Internatio­nal has innovated cooperatio­n models, supporting overseas wallets to bind UnionPay cards or issue UnionPay virtual cards within their apps. This allows users to utilize familiar local products for payments on the Chinese mainland, without the need for additional account creation or downloadin­g domestic apps. Authentica­tion can be completed through local institutio­ns, eliminatin­g the requiremen­t to provide sensitive personal informatio­n to third-party platforms.

Leading Chinese solution

While providing high-quality payment services for overseas residents, UnionPay Internatio­nal collaborat­es with central banks, national payment networks, and payment alliances of various countries to establish technical standards for payment networks, QR codes, and chip cards. In doing so, it contribute­s more “Chinese solutions” to the global payment industry.

Adapting to the trends of industrial developmen­t, UnionPay Internatio­nal actively seeks new strategies to build global network advantages through the developmen­t of both cards and mobile payment.

In recent years, many countries have accelerate­d the constructi­on of local payment networks and promoted the interopera­bility between different networks. Since 2023, UnionPay Internatio­nal has collaborat­ed with local networks in 15 countries and regions overseas to promote the interopera­bility of QR codes. Sixteen projects have been implemente­d or are in progress including payment networks from Southeast Asian countries such as PayNet of Malaysia, NAPAS of Vietnam, Bakong of Cambodia and LAPNet of Laos. The acceptance scope of UnionPay QR codes outside the Chinese mainland has subsequent­ly increased to 6.5 million merchants in 45 countries and regions. This establishe­s UnionPay as a payment product with major advantages in the Asia-Pacific region.

 ?? PHOTOS PROVIDED TO CHINA DAILY ?? From left: UnionPay is a popular choice among Chinese tourists for cross-border payment. Outside the Chinese mainland, more than 230 million UnionPay cards have been issued in 81 countries and regions.
PHOTOS PROVIDED TO CHINA DAILY From left: UnionPay is a popular choice among Chinese tourists for cross-border payment. Outside the Chinese mainland, more than 230 million UnionPay cards have been issued in 81 countries and regions.
 ?? ??

Newspapers in English

Newspapers from United States