Will China UnionPay replace MasterCard and Visa for Russians?
The recent decision of the American payment systems Visa and MasterCard to suspend servicing of settlement operations of cardholders of some Russian banks (which fell under the sanctions of the USA) caused a great resonance in the country.
It even referred to the refusal to cooperate with the Visa and MasterCard IPUs and the prohibition of their activities in our country. However, taking into account the unavailability of the Russian payment system and its inability to quickly and completely replace such large players in the market, it was decided not to rashly rashly and act deliberately and gradually.
At first, a bill was introduced in the State Duma, according to which the process of domestic Russian money transfers should be closed on the territory of the country, and participants of payment systems should be deprived of the right to unilaterally terminate the provision of services. In turn, President Putin endorsed the idea of creating a National Payment System, which will not depend on Western companies. The basis is proposed to take the experience of eastern countries - Japan and China. The payment systems of these states (Japanese JCB and Chinese UnionPay) began their work as national ones, becoming international in time.
Today, China UnionPay (CUP) is the world leader in the number of plastic cards issued, well ahead of Visa (in 2013, the number of issued cards reached 3.4 billion). What has helped the Chinese payment system in just 12 years of its existence to significantly weaken the position of "veterans" of the financial services industry and become a strong competitor? Let's try to figure it out.
The national payment system of China UnionPay was established in March 2002 on the initiative of the State Council and the People’s Bank of China.
')
With the support of several commercial banks, the PS began its work in large and medium-sized cities in the eastern regions of the country and subsequently covered the central and western regions, small cities and towns.
In August 2003, UnionPay unveiled its map, which operated throughout the world and met generally accepted standards. Thanks to the expansion of its sphere of influence and the improvement of the infrastructure for accepting bank cards, the number of transactions with their use has steadily increased. In 2010, the volume of interbank card operations in China reached 11.2 trillion yuan (annual growth was 46%). For 8 years, the share of use of bank cards in the total volume of retail trade increased from 2.7% to 35%.
To meet the demand and need of Chinese for financial services on trips abroad (for work, study or travel), as well as to provide its citizens with the opportunity to use the products of Chinese banks during their stay abroad, UnionPay began to develop an international network of accepting its plastic cards.
Today, CUP is a key figure in the financial services market in China and plays a crucial role in the development of the country's economy. Since its inception, UnionPay has been actively involved in China's socio-economic policy and in every way contributed to increasing the demand for bank cards. The payment system works closely with commercial banks and other companies, developing the domestic market of bank cards and bringing it to the world level.
Today, plastic cards of the Chinese payment system are accepted in 141 countries of the world. And 65 commercial banks from 17 states received the right to issue UnionPay "plastic" in their regions (the issue reached 10 million). Cards of the Chinese payment system are popular in the domestic market and highly valued abroad.
CUP card holders can not only withdraw cash from ATMs and pay in a retail network, but also pay utility bills, book air tickets and hotel rooms, pay off loans and make money transfers using remote channels (via the Internet, mobile and landline phones, self-service terminals digital tv).
Over the years of its existence, the National Payment System of China was awarded many awards and prizes (in January 2007, UnionPay entered the top ten most influential brands of the country; in December 2008, the creation of CUP was recognized as one of the most important events that influenced the development of China). In addition, according to a survey, almost 100% of the country's population is familiar with the UnionPay brand.
The Chinese substation appeared on the Russian market in 2007, and in September 2013, the Central Bank included UnionPay LLC into the register of payment system operators in the Russian Federation (number 0028). According to experts, today UnionPay is not inferior to American payment systems neither in technology nor in the quality of services provided.
In our country, UnionPay cardholders can withdraw cash at ATMs and pay at merchants. In Russia, CUP payment cards serve Uniastrum Bank, VTB, Bank of Moscow, Vostochny Express Bank, InterProgressBank and other financial institutions. If you wish, you can get a Unionpay - Golden Crown ruble card at the Far Eastern or Irkutsk branch of MTS Bank.
It also became known that the Russian Direct Investment Fund began negotiations with UnionPay, considering a possible partnership in terms of servicing domestic bank cards abroad. It is likely that in the near future, the Chinese payment system will press the Visa and MasterCard IPS on the Russian market, and recent events will contribute to this in many ways.
It even referred to the refusal to cooperate with the Visa and MasterCard IPUs and the prohibition of their activities in our country. However, taking into account the unavailability of the Russian payment system and its inability to quickly and completely replace such large players in the market, it was decided not to rashly rashly and act deliberately and gradually.
At first, a bill was introduced in the State Duma, according to which the process of domestic Russian money transfers should be closed on the territory of the country, and participants of payment systems should be deprived of the right to unilaterally terminate the provision of services. In turn, President Putin endorsed the idea of creating a National Payment System, which will not depend on Western companies. The basis is proposed to take the experience of eastern countries - Japan and China. The payment systems of these states (Japanese JCB and Chinese UnionPay) began their work as national ones, becoming international in time.
Today, China UnionPay (CUP) is the world leader in the number of plastic cards issued, well ahead of Visa (in 2013, the number of issued cards reached 3.4 billion). What has helped the Chinese payment system in just 12 years of its existence to significantly weaken the position of "veterans" of the financial services industry and become a strong competitor? Let's try to figure it out.
The history of China UnionPay
The national payment system of China UnionPay was established in March 2002 on the initiative of the State Council and the People’s Bank of China.
')
With the support of several commercial banks, the PS began its work in large and medium-sized cities in the eastern regions of the country and subsequently covered the central and western regions, small cities and towns.
In August 2003, UnionPay unveiled its map, which operated throughout the world and met generally accepted standards. Thanks to the expansion of its sphere of influence and the improvement of the infrastructure for accepting bank cards, the number of transactions with their use has steadily increased. In 2010, the volume of interbank card operations in China reached 11.2 trillion yuan (annual growth was 46%). For 8 years, the share of use of bank cards in the total volume of retail trade increased from 2.7% to 35%.
To meet the demand and need of Chinese for financial services on trips abroad (for work, study or travel), as well as to provide its citizens with the opportunity to use the products of Chinese banks during their stay abroad, UnionPay began to develop an international network of accepting its plastic cards.
ChinaUnionPay today
Today, CUP is a key figure in the financial services market in China and plays a crucial role in the development of the country's economy. Since its inception, UnionPay has been actively involved in China's socio-economic policy and in every way contributed to increasing the demand for bank cards. The payment system works closely with commercial banks and other companies, developing the domestic market of bank cards and bringing it to the world level.
Today, plastic cards of the Chinese payment system are accepted in 141 countries of the world. And 65 commercial banks from 17 states received the right to issue UnionPay "plastic" in their regions (the issue reached 10 million). Cards of the Chinese payment system are popular in the domestic market and highly valued abroad.
CUP card holders can not only withdraw cash from ATMs and pay in a retail network, but also pay utility bills, book air tickets and hotel rooms, pay off loans and make money transfers using remote channels (via the Internet, mobile and landline phones, self-service terminals digital tv).
Over the years of its existence, the National Payment System of China was awarded many awards and prizes (in January 2007, UnionPay entered the top ten most influential brands of the country; in December 2008, the creation of CUP was recognized as one of the most important events that influenced the development of China). In addition, according to a survey, almost 100% of the country's population is familiar with the UnionPay brand.
UnionPay in Russia
The Chinese substation appeared on the Russian market in 2007, and in September 2013, the Central Bank included UnionPay LLC into the register of payment system operators in the Russian Federation (number 0028). According to experts, today UnionPay is not inferior to American payment systems neither in technology nor in the quality of services provided.
In our country, UnionPay cardholders can withdraw cash at ATMs and pay at merchants. In Russia, CUP payment cards serve Uniastrum Bank, VTB, Bank of Moscow, Vostochny Express Bank, InterProgressBank and other financial institutions. If you wish, you can get a Unionpay - Golden Crown ruble card at the Far Eastern or Irkutsk branch of MTS Bank.
It also became known that the Russian Direct Investment Fund began negotiations with UnionPay, considering a possible partnership in terms of servicing domestic bank cards abroad. It is likely that in the near future, the Chinese payment system will press the Visa and MasterCard IPS on the Russian market, and recent events will contribute to this in many ways.
Source: https://habr.com/ru/post/217953/
All Articles