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UnionPay

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"Quick Pass" redirects here. For the toll transponder system in North Carolina, also called Quick Pass, see North Carolina Turnpike Authority § NC Quick Pass.

UnionPay
Company typePublic
IndustryBanking, Finance
Founded26 March 2002; 22 years ago (2002-03-26)
HeadquartersPudong,
Shanghai
,
China
Websitewww.unionpayintl.com/en/

UnionPay (Chinese: 银联; pinyin: Yínlián), also known as China UnionPay (Chinese: 中国银联; pinyin: Zhōngguó Yínlián) or by its abbreviation, CUP, is a Chinese financial services corporation headquartered in Shanghai, China. It provides bank card services and a major card scheme in mainland China. Founded on March 26, 2002, China UnionPay is an association for China's banking card industry, operating under the approval of the People's Bank of China (PBOC, central bank of China).[1] It is also the only interbank network in China that links all the automatic teller machine (ATMs) of all banks throughout the country. It is also an electronic funds transfer at point of sale (EFTPOS) network.

It is the largest card payment organisation (debit and credit cards combined) in the world offering mobile and online payments[2] based on total value of payment transactions, ahead of Visa and Mastercard.[3][4]

History

UnionPay decal on the door of a dining hall.

With the approval of the People's Bank of China, China UnionPay was launched on March 26, 2002, in Shanghai by PBOC governor Dai Xianglong, The Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China and the China Construction Bank served as its first members.[5] However, the concept of a unified Chinese bank card network dates back to 1993, with the formation of the "Golden Card Project" advocated by then-Chinese president Jiang Zemin. UnionPay is considered its descendant, although attempts at unifying China's various credit card and interbank networks have been in place since the 1990s.[6]

In 2014, UnionPay was reported to have been contributing to capital flight from China through poorly regulated store front operations in Macau.[7]

Global alliance

Further information: Card reciprocal agreements

In 2005, UnionPay entered into agreements with other payment networks to increase acceptance around the world. Some major examples include:

The CUP logo originated in China before the establishment of the CUP network system. The red, blue, and green color block design represented the integration of cooperation, steady flow, and safety assurance. It is accompanied by the Chinese characters for "UnionPay" in white. The logo was first registered in 1997 and launched in the Shenzhen trial.[citation needed]

China UnionPay started a limited trial card distribution in March 2001. By January 2002, many banks and financial institutions began a larger trial in Beijing, Shanghai, Guangzhou, Hangzhou, Shenzhen and five other five cities , which gradually extended to the entire country.

On October 18, 2005, China UnionPay announced a new logo. The new card kept the three-colors of the old logo while other elements were adjusted. The new logo also featured increased use of English. At present, both card styles are in circulation, with the old UnionPay cards being gradually replaced.

CUP was initially concerned that overseas merchants might fail to recognise the new logo and refuse to accept new-style UnionPay cards. Therefore, for a period, unified domestic debit and renminbi (RMB) single currency credit cards used the new logo, while international debit cards and dual currency credit cards used the old logo. From the beginning of 2009, dual-currency credit card banks began to gradually introduce the use of the new UnionPay logo.[citation needed]

QuickPass

Quick Pass Logo

On the introduction of EMV chips into China UnionPay cards,[8] banks also introduced QuickPass (Chinese: 闪付), a contactless smart card feature similar to MasterCard's PayPass or Visa's payWave. QuickPass is accepted in many supermarkets and fast food stores. Quickpass is also supported by several digital wallet providers such as Samsung Pay and Apple Pay.[9]

Online payments

UnionPay is China's first financial-level pre-authorization service for secured transactions. The system allows payment for online shopping at any merchant that accepts UnionPay. In 2014, the total amount of cross-bank transactions of CUP card exceeded 41.1 trillion yuan.[10]

Use abroad

UnionPay cards can be used in 162 countries and regions around the world, making it the third-largest payment network by value of transactions processed, behind Visa and MasterCard.[11] Some UnionPay credit cards are also affiliated with American Express, MasterCard or Visa, and they can be used abroad as an American Express, MasterCard or Visa. UnionPay debit cards, however, can only be used in the UnionPay network and other networks that have signed contracts with UnionPay. Since 2006, China UnionPay cards can be used in over 100 countries outside China.[12]

In May 2005, Discover Network announced an alliance with China UnionPay Network. The two companies have signed a long-term agreement that allows acceptance of Discover Network brand cards at UnionPay ATMs and point-of-sale terminals in China and acceptance of China UnionPay cards on the PULSE network in the U.S.[13] As of 1 November 2007, China UnionPay cards may be accepted where Discover Network Cards are accepted in the United States, Canada, Mexico, Central America and the Caribbean.[14] As of early 2013, the cross acceptance agreement was expanded to support e-commerce or card-not-present transactions.[citation needed] In March 2010, PayPal announced a partnership with China UnionPay enabling the use of PayPal with UnionPay member cards.[15] In 2015, China’s State Administration of Foreign Exchange (SAFE) placed a 100,000 yuan annual cap on overseas UnionPay (Issued by China's bank) cash withdrawals.[16] In November 2017, Azoya teamed up with UnionPay to enable consumers in China to profit from the Black Friday online shopping festival via a cross-border marketing platform.[17]

Members

UnionPay is the primary network of these Chinese banks:

Other UnionPay-affiliated organizations include municipal commercial banks as well as rural credit cooperatives. Overall, there are 165 financial institutions that issue UnionPay cards.[citation needed]

UnionPay had partnered with JETCO in Hong Kong and Macau until 1 January 2006. As of January 2013, Bank of East Asia and Citibank were the only banks allowed to independently issue UnionPay credit cards in Hong Kong and the mainland. HSBC and its subsidiary Hang Seng Bank independently issue UnionPay credit cards in Hong Kong, while they issue cards in the mainland in cooperation with local banks as noted above. Deutsche Bank only has co-issued cards, with no independently issued UnionPay credit cards.

The following eleven foreign banks have the right to issue UnionPay debit cards in China:

UnionPay in other countries:

See also

References

  1. ^ "Introduction - UnionPay International". www.unionpayintl.com. Retrieved 19 April 2018. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  2. ^ "UnionPay offers secure and convenient payment service for Chinese students studying abroad". www.unionpayintl.com.
  3. ^ "UnionPay takes top spot from Visa in $22 trillion global cards market - RBR". Finextra Research. 22 July 2016.
  4. ^ Inc., Moxian,. "Moxian, Inc. Signs Cooperation Agreement with China UnionPay Subsidiary -- Beijing Chinaums". www.prnewswire.com. {{cite news}}: |last1= has generic name (help)CS1 maint: extra punctuation (link) CS1 maint: multiple names: authors list (link)
  5. ^ Dai Xianglong (26 March 2002). "Remarks by Mr. Dai Xianglong, Governor of the PBC at the Opening Ceremony of China Unionpay". People's Bank of China. Retrieved 27 September 2009.
  6. ^ Pomfret, James (11 March 2014). "Special Report: How China's official bank card is used to smuggle money". www.reuters.com. Thomson Reuters. Retrieved 11 March 2014.
  7. ^ "EMVCo Members". EMVCo. Retrieved 19 April 2018.
  8. ^ "Apple & China UnionPay to Bring Apple Pay to China". Apple Newsroom. Retrieved 19 April 2018.
  9. ^ Yip, Amy. "WILL CHINA UNIONPAY EXPAND FROM A DOMESTIC MONOPOLY TO A GLOBAL PLAYER?" (PDF). centennialcollege.hku.hk. p. 5. Retrieved 13 November 2018.
  10. ^ "Purchase Transactions Worldwide". nilsonreport.com. 1 March 2015. Retrieved 8 March 2016.
  11. ^ "China UnionPay extends coverage globally". Xinhua news agency. 2 February 2006. Archived from the original on 7 October 2007. Retrieved 27 September 2009. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  12. ^ "China UnionPay accepted in U.S. on Discover/Pulse networks". People's Bank of China. 6 December 2005. Archived from the original on 16 March 2007. Retrieved 27 September 2009. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  13. ^ "Big Database of Credit Offers: Cards Accepted in the United States". wistex. Archived from the original on 7 February 2009. Retrieved 27 September 2009. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  14. ^ "PayPal and China UnionPay Open the Global Marketplace to Chinese Consumers". paypal.com. 23 March 2010. Retrieved 13 November 2018.
  15. ^ "China's SAFE slaps 100,000 yuan annual cap on overseas UnionPay cash withdrawals". South China Morning Post. Retrieved 19 April 2018.
  16. ^ Zaczkiewicz, Arthur (22 November 2017). "Azoya Teams With UnionPay to Help International Retailers Leverage Black Friday Sales". WWD. Retrieved 23 November 2017.
  17. ^ Myat, Aye (24 January 2016). "AGD Bank, MPU Launch First Co-branded UnionPay Debit Card in Myanmar". mmbiztoday.com. Retrieved 13 November 2018.
  18. ^ "BAIDURI UNIONPAY DEBIT CARD". baiduri.com. Retrieved 13 November 2018.
  19. ^ "Bangkok Bank UnionPay Credit Card". bangkokbank.com. Retrieved 13 November 2018.
  20. ^ "BCEL UnionPay Cards". bcel.com.la. Retrieved 13 November 2018.
  21. ^ "Sinarmas, UnionPay teaming up". thejakartapost.com. Retrieved 13 November 2018.
  22. ^ "BDO Diamond UnionPay". bdo.com. Retrieved 13 November 2018.
  23. ^ "DBS, UnionPay launch debit card to help visitors to China". The Straits Times. 17 May 2016. Retrieved 22 August 2016.
  24. ^ a b c d e f g h i j k l m n o p q "UnionPay International Homepage-Global Union Pay Card". unionpayintl.com/en. Retrieved 13 November 2018.
  25. ^ "UnionPay International partners with Bank Alfalah to issue UnionPay cards in Pakistan". unionpayintl.com. Retrieved 13 November 2018.
  26. ^ "UnionPay Debit Card Deals". faysalbank.com. Retrieved 13 November 2018.
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