UnionPay spreading wings beyond China's borders

Generous spending by cardholders helps propel payment system's acceptance

Tourists from China who travel to destinations in Asia may soon find a familiar sign welcoming them at busy airports and sprawling stores. The logo of UnionPay, the Chinese payment system, is now prominently visible at the round-the-clock fast fashion retailers of Dongdaemun in Seoul and in the duty-free stores at sprawling Changi Airport in Singapore.

With a swipe of the UnionPay card, travelers can pay taxi fares, shop at VIP lounges in shopping malls, or even dine on Bak Kut The - a famous Malay dish - at fishcake stalls.

Sam Zhao, senior manager of business development with Valiram Group at Resorts World Sentosa in Singapore, says UnionPay cardholders are shopping so generously that no merchant can resist acceptance of the card.

"We have a wide range of luxury brands here, and UnionPay card holders can enjoy exclusive privileges and discounts," says Zhao.

Nix Tang, senior marketing manager of Sentosa Leisure Management Pte Ltd, says discounts may vary from 5 percent to up to 15 percent, and the privileges range from using VIP rooms to free limousine transportation to shopping destinations.

Most of the merchants are eyeing the booming purchasing power of Chinese outbound travelers, more than 90 percent of whom use UnionPay cards.

According to the California-based Nilson Report, UnionPay already enjoys almost 100 percent recognition in China's domestic market.

Outside of China, UnionPay International has been trying to create new users by working with local banks, payment networks and merchants.

"Promotions for UnionPay cards are everywhere, and you cannot just ignore it. I applied for a card from a local bank and became a UnionPay card holder this August, and I have saved some $100 by using the card," says Justin Wong, a 27-year-old museum assistant in Singapore.

Also, according to Nilson Report, UnionPay had the world's third-largest market share of credit and debit transactions (7.7 percent) in 2013, after US-based Visa Inc (60.5 percent) and MasterCard Inc (26.9 percent).

Compared with other players who entered the market earlier, UnionPay International's development has been rather fast, given the fact that the number of cards it issued outside the Chinese mainland reached more than 25 million in just seven years.

China UnionPay will become a service-oriented open platform that innovates along with its partners, Shi Wenchao, the chief executive of China UnionPay.

The goal means that UnionPay will introduce more applications, and serve as a gateway to retailers with online shopping platforms, and may jointly offer applications with developers of smart devices, such as mobile payment and "phone pockets".

wuyiyao@chinadaily.com.cn

(China Daily Africa Weekly 09/26/2014 page16)