The credit card industry in China The rise of a national champion and challenges for the future

Size: px
Start display at page:

Download "The credit card industry in China The rise of a national champion and challenges for the future"

Transcription

1 Student Research Projects/Outputs No.040 The credit card industry in China The rise of a national champion and challenges for the future Javier L Santomá Vilaclara MBA 2009 China Europe International Business School 699, Hong Feng Road Pudong, Shanghai People s Republic of China 1

2 1. Introduction The growth in China in the last thirty years has been impressive and has been achieved through a combination of government and private initiative. The growth numbers in China have been impressive and if the trends stay as they are now it will surpass the US as the biggest GDP country in the medium term. As the country developed the central government realized the need of establishing credit and debit cards. There were already players in this market that are global companies and quite established as they have been in the business for a long time. The principal players are VISA, MasterCard and American Express. Instead of approaching the means of payment business with one of these players and through the bank the Popular Bank of China PBOC decided to impulse a Chinese platform. The result of these efforts was China Union Pay. It was born as an initiative of China and the principal banks quickly accepted. The analysis is going to focus on the actual situation of penetration and usage of credit and debit cards and also is going to look at what the next steps are going to be. This analysis is interesting because China is a country where the bancarization has happened relatively late but also very fast. It is going to be structured this way. In the first part the business model and ecosystem for the credit and debit cards will be assessed. Once the way the business works is clarified will delve deeper in what is the situation right now and how is the outlook for the future. It also will check what are the advantages and disadvantages of the electronic payments. To close up we will finish with a note on what are the challenges being faced because of all these changes and all the future trends. 2

3 2. The business model To clear an electronic transaction with the credit card the infrastructure you need is composed by a Point of Sale (POS) terminal, a card linked to an account and an electronic data transmission going back and forth to confirm the validity of the transaction. The clearance system is composed by the technological standards inside the POS terminal and the language used to clear the transaction once the card has been swiped. As the shops don t want to have many different machines for each of the technologies they either pick a system of payments or use terminals that are valid for different cards. In the past the POS terminals would only accept one type of credit card and to accept different cards the shops needed different terminals. Technology though has enabled terminals that can accept different credit cards and have helped expand that types of cards that can be accepted. Even with this technological advance there is only room for so many companies in the electronic clearance system as a big critical mass is required to allow the model to function. It is very important to see the distinction between credit and debit cards. Debit cards clear the transaction almost in real time and will not work if the account balance is not enough to pay for the transaction. It is almost like paying with cash but instead the amount is deducted from the bank account. On the other hands credit cards work different and the amount is charged against the credit of the card and is normally cleared once a month adding up all the expenditures made with the card up to the date. This means the consumer can spend money even if the bank account linked to the credit card doesn t hold enough to pay for the transaction One of the critical aspects in this business is the network or penetration measured by the numbers of retailers or POS that accept the card. It is a critical measure because for the customers it becomes really frustrating not to be able to pay in certain outlets because the card is not accepted. This translates into the network being a key issue for the acceptance of the card. The other side of this equation would be the number of cardholders. Merchants do not feel compelled to install the POS terminal if the 3

4 number of card members is not big enough. As you see when you implement a system of payment clearance you have to grow both sides more or less at the same rate although the merchants are more critical because their switching costs are higher. Once they have the machine and the systems in place it is more difficult for them to change the payment system than to a cardholder to change their card. Another important aspect of the card from the customer s point of view is whether he will be able to use it to get money out of the ATM system. In this case though it is easier to achieve penetration because the partnership has to be only with the banks and then the banks change the ATM network so that they can accept the credit cards. The banks are also very important in the system because they are normally the card issuers and can push a type of card to their customer base. As a result of this the credit card companies have always been trying to get the different banks to give cards with their clearance system to the customers. The customer normally accepts the credit card that comes by default with the products he has at the bank and thus it is an important part of the business to have the support of the banks 3. Why is there a big potential for the credit card business in China? The penetration of credit cards is almost inexistent compared to the US (0,9 percent compared to 300 percent in the US) Even though China is a market where credit is not used as often as in the US and the Chinese consumer is more savings oriented than in the US. The average unpaid balance, credit left revolving in the cards instead of being used is only 2.5 billion RMB. If the tendency is similar to the one seen in more developed economies there will be a very big growth on this numbers as consumers start using the credit cards to carry balances. As of 2007 the Chinese domestic banks had still not made profit with the credit card business. The reason they are pushing this issue is because they see it as a potential profit making activity in the futures. For the multinational banks operating in China the outlook is a bit different as they are already making 4

5 profit on their credit card business. This is probably because of the customers in average are more sophisticated. If we use Hong Kong as a reference point to where mainland China wants to head we can see that at the end of 2004 in Hong Kong 20% of the purchases made had been made with credit card. 4. China Union Pay China Union Pay (CUP) is a government initiative to create a Chinese clearance system for payments. The Popular Bank of China (PBOC) backed the initiative and got the biggest Chinese banks on board for the initiative. The initiative launched in 1992 and has been really successful as it is the reference card now in China. It is also expanding internationally as their customers will travel more and more often. As such CUP was not established until March Its mission states that one of the goals is create an independent bankcard brand of China by cooperating with commercial banks to push forward the sustainable and healthy development of China s bankcard industry The government support to CUP has factually blocked the entrance of any other competitor in the electronic clearance market. This has caused the US administration to present a complaint in front of the World Trade Organization (WTO). The complaint claims that the government in this case has caused a de facto monopoly for the credit card payment. In china this is actually a reality, CUP is everywhere and even though they have agreements with other companies to process their credit card payments it is CUP who has a hold in the market. With the time it takes to the WTO to process a complaint even though the US might be right in their claim the result for China will be a big fine and an imposition to open thir market for the electronic cards 5

6 payment. Even if they open their market in some years it will not be so important because the footprint of CUP is already very high and will become even higher. CUP has signed agreements with different partners (VISA, Mastercad, Amex) to allow Chinese cardholders to use their credit cards in the partner s systems while abroad and to allow the customers of these companies to use CUPs system when in China. These agreements make sense for both parts because it expands the region where the cards are useful. The result is normally a card that haves the two standards CUP and VISA for example. Another possibility is to emit two different cards to each customer in case the customer wants to travel. Recent developments have shown that these partnerships can go sour and the partnership CUP and VISA is an example of this as recently VISA announced it would reject CUPs overseas channel. This translates into the VISA system not accepting any more transaction made by their global customers through the CUP system with their dual cards. This measure started applying after august the first of This is a direct result of the two conflicting business model and a move by VISA to try to retain their profit share. VISA earns money when they process the transaction through their system and thus allowing CUP to process their customers doesn t report them any monetary benefit. The cardholder here is the one who ends up suffering because he will not be able to use his credit card anymore in the CUP system. The official reason for VISA to justify this movement is that the security of the CUP clearance system is not enough to assume the risk. Some data that can document the exponential growth of CUP as the card system of reference in China are the following. At the end of June of ,570,000 merchants had affiliated with CUP translating into 2,410,000 POS pieces. The ATM network had reached 215,000 pieces. This numbers when you compare them to the numbers in 2001 before CUP was established as such are around 10 times more for merchants and POS terminals and 5 times more for the ATM network. Of course here there are two effects mixed the economic growth of China that has increased the numbers of stores and ATMs and also the penetration of CUP once it was decided it would be the 6

7 clearance system of choice for China. As for the transaction money in 2009 it reached the RMB 7.7 trillion and that figure is 83.7 times the one that we had in The international acceptance network now reaches 98 countries for CUP. This figure is very likely to keep increasing in the next years until they reach all the countries because all the national banks in the different countries are willing to accept the card that has become the standard in China. The selling argument is very easy once you realize that the Chinese population is starting to travel and that their card is the CUP. The strengths that CUP has enjoyed are the following Government backing, as a company CUP was founded once it was decided that China needed its own clearance system for its population and to compete with the international companies. The PBOC supported the creation of CUP and so did the central government and all the different regional agencies. It is critical in China to be aligned with the political institutions as the economy is less liberalized than in other countries. There are also a lot of State Owned Enterprises that have a political agenda as well as the business one. Low penetration of credit cards, traditionally the Chinese conducted all the transactions in cash. For the businesses cash transaction have an advantage against card transactions because there is no discount fee that goes to the card company. It was hard for the foreign companies to make the merchants realise the advantages of the credit card. CUP has probably had this problem also but being a Chinese initiative the resistance has probably been less intense. Chinese Banks support, once CUP was created it received the support of the main 14 banks in China. These banks have their customers and once they adapted CUP they passed it on to their customers. This way the merchants were more prone to accept the system because potentially so many customers would have it. This also translated into some of the doors being closed for the international companies as the banks had already made explicit they sided with CUP. Some products of internationals companies are also being offered at these banks but only for a very specific segment of the population that travels or has a very high income. 7

8 Good technological standards, the system works and it is safe and convenient. If the system hadn t worked CUP would have encountered a lot of trouble and resistance from all the stakeholders, customers, banks and merchants. The launch didn t happen until the product was robust enough and this way they ensured there would be no problems on this side. Financial capabilities, CUP had enough cash at the beginning of its operation to pay for the installation of the network and the POS terminals. It had to spend a lot of cash in setting up this infrastructure and had it nod been properly financed it could have run out of cash. The revenues on the card model don t show up until some years later especially in countries with low penetration so they had to be ready to invest a lot of cash into the system. 5. Challenges The debit card business main challenge is growing the network of POS that accept the credit card and growing the number of customers. Paying with plastic offers a lot of advantages against the more traditional methods, it is convenient, the records are kept of all the transactions and it is safer than paying with cash. Specially the pin enabled terminals that require the customer to input their personal number when doing the transaction. Credit cards are a different issue as the banks push them because they bring in really good profits. The commission charged for the transaction is higher than with debit cards. The main source of profitability though comes from the customers who use the cards as a mean of financing the purchase. The cardholder will not pay the whole debt in the due date and will pass the debt to the next month. The issue here is that the interest rate required to finance this debt revolving is considerably higher than any other interest the customer could access. The Chinese government has already realized that and is trying to control a little bit who receive the credit cards to avoid very difficult situations where the cardholder can t cope wit the debts. The measures they have passed include the following. The banks should not give gifts to new 8

9 cardholders for signing up for a new card. The staff in the banks will not have a sales quota for credit cards. Another measure is that they will not give credit cards to anyone under 18. One of the goals in the Chinese agenda is to increase the internal consumption as the middle class grows in China. Credit cards will definitely boost consumption as consumers spend more when they use credit cards. It is important though to make credit card holders aware of the advantages and disadvantages of the credit cards so that they can take an informed decision. 6. Conclusion CUP has been a success and is achieving the goal it had set for itself to become the reference in China for card payments. Card payments help an economy develop as they take risk out of the transaction and increase consumption, it also help both the merchants and the card holder keep a better track of their spending, reduce the paperwork and increase the transparency. As China develops the penetration of CUP will increase as they are already positioned to be the reference card in China and in the future in south East Asia. The clearance system will have a positive impact all over China as it is more convenient for everyone involved provided the fees to the merchant are not excessive. CUP has had a very transparent policy about fees and fees are in lowest range in the industry especially for debit cards. This in turn will further increase the acceptance of the cards as the merchants adopt the technology and so do the customers. One of the advantages in china is that it is jumping from cash to plastic payments and has skipped in big part the whole check book as a mean of payment. With an increasing customer base and wealth the penetration of plastic payments will grow in the coming years until it reaches a plateau. This is still down the line as the 9

10 difference between the China figures and the ones in the developed world is very thing. 10

11 7. Bibliography Redemption behavior for credit card reward programs in China Type: Research paper Author(s): Matthew Tingchi Liu, James L. Brock Source: International Journal of Bank Marketing Volume: 27 Issue: Do credit card redemption reward programs work in China? An empirical study Type: Research paper Author(s): Matthew Tingchi Liu Source: Journal of Consumer Marketing Volume: 26 Issue: The Top Ten Global Retail Banks Business Insights Datamonitor 360º China Union Pay website Growth in credit card usage in China 11

12 American Express figures on China Article about the competitive environment in China https://www.mckinseyquarterly.com/competing_for_chinas_credit_card_market_171 3 China cracking down on credit card issuers 12

Secure Financial Transactions Any Time, Any Place

Secure Financial Transactions Any Time, Any Place Secure Financial Transactions Any Time, Any Place Euronet Software Solutions Gold-Net Global Payment Solution Become a Processor Providing Authorization, Clearing, Settlement, Value Added Services and

More information

Euronet s Contactless Solution

Euronet s Contactless Solution Serving millions of people worldwide with electronic payment convenience. Euronet s Contactless Solution Fast, Secure and Convenient Transactions with No Swiping, PIN or Signature Copyright 2011 Euronet

More information

TAP INTO THE BUYING POWER OF MILLIONS OF CHINESE CONSUMERS

TAP INTO THE BUYING POWER OF MILLIONS OF CHINESE CONSUMERS COMPLETE AND SECURE PAYMENT SOLUTION PROVIDER TAP INTO THE BUYING POWER OF MILLIONS OF CHINESE CONSUMERS OVER 700 MILLION CARD HOLDERS MoneySwap All Rights Reserved Page 1 CHINA S ONLINE RETAIL MARKET

More information

Credit Card Processing 101

Credit Card Processing 101 Credit Card Processing 101 Customers have come to expect credit cards as a payment option. With ATM fees continuing to rise, some consumers may even exclusively choose to take their purchasing power to

More information

How Online Payments Really Work

How Online Payments Really Work Insights for Businesses How Online Payments Really Work If you re thinking about setting up an online store, you re in good company. Shoppers are increasingly turning to online options, as their access

More information

Overview of Popular Online Payment Methods in China

Overview of Popular Online Payment Methods in China Overview of Popular Online Payment Methods in China Market Insights China is an important market for global e- commerce companies, and it will be for years to come. These numbers speak for themselves:

More information

THE FIVE Ws OF EMV BY DAVE EWALD GLOBAL EMV CONSULTANT AND MANAGER DATACARD GROUP

THE FIVE Ws OF EMV BY DAVE EWALD GLOBAL EMV CONSULTANT AND MANAGER DATACARD GROUP THE FIVE Ws OF EMV BY DAVE EWALD GLOBAL EMV CONSULTANT AND MANAGER DATACARD GROUP WHERE IS THE U.S. PAYMENT CARD INDUSTRY NOW? WHERE IS IT GOING? Today, payment and identification cards of all types (credit

More information

J.P. MORGAN CHASE & CO.: THE CREDIT CARD SEGMENT OF

J.P. MORGAN CHASE & CO.: THE CREDIT CARD SEGMENT OF SENEM ACET COSKUN BUS 9200 - FALL 2008 - MIDTERM J.P. MORGAN CHASE & CO.: THE CREDIT CARD SEGMENT OF THE FINANCIAL SERVICES INDUSTRY I-Executive Summary Consumers are increasingly using plastic cards and

More information

Inside the Mobile Wallet: What It Means for Merchants and Card Issuers

Inside the Mobile Wallet: What It Means for Merchants and Card Issuers Inside the Mobile Wallet: What It Means for Merchants and Card Issuers Welcome to the age of Universal Commerce commerce that is integrated, personalized, secure, open, and smart. The lines between in-store

More information

Annual Analysis Card Payments

Annual Analysis Card Payments Annual Analysis Card Payments Cards and Transactions February 2014 With an expected GDP growth of 0.5% and an almost 1% decline in consumption, analysts define 2013 as a year of feeble economic recovery

More information

Business white paper Mobile payments

Business white paper Mobile payments Business white paper Mobile payments Setting standards and gaining customer loyalty Business white paper Page 2 Mobile payments With the rapid development of electronic systems and technology, the adoption

More information

Welcome to Paysec Delivering your Asia Payments

Welcome to Paysec Delivering your Asia Payments Welcome to Paysec Delivering your Asia Payments Delivering Asia We provide Payment Gateways enabling Merchants to accept debit card payments from the biggest networks in the Asian markets. We offer a

More information

PREPAID DEBIT CARDS PRESENTATION JANUARY 2007

PREPAID DEBIT CARDS PRESENTATION JANUARY 2007 PREPAID DEBIT CARDS PRESENTATION JANUARY 2007 1 Emergence of Prepaid Debit Cards Traditional debit cards are associated with bank checking accounts held by bankable people Visa/ MasterCard and member banks

More information

Overview of UnionPay. All Roads Lead to China

Overview of UnionPay. All Roads Lead to China Overview of UnionPay All Roads Lead to China Today in 30 Seconds Overview of the market that is China. Understanding what UnionPay represents for potential. What does it mean to accept UnionPay.successfully?

More information

DECISION ON DETERMINING THE INTERCHANGE FEE IN VISA AND MASTERCARD SYSTEMS

DECISION ON DETERMINING THE INTERCHANGE FEE IN VISA AND MASTERCARD SYSTEMS DECISION ON DETERMINING THE INTERCHANGE FEE IN VISA AND MASTERCARD SYSTEMS The proceedings initiated upon a complaint of the Polish Organisation of Commerce and Distribution, were conducted under Polish

More information

STANDARD CHARTERED BANK (CHINA) LIMITED. Debit Card Userguide

STANDARD CHARTERED BANK (CHINA) LIMITED. Debit Card Userguide STANDARD CHARTERED BANK (CHINA) LIMITED Debit Card Userguide Thank you for choosing SCB debit card With an SCB debit card, you can enjoy more convenient bank s financial services and use your debit card

More information

A CREDIT CARD PROGRAM CAN BE A CREDIT UNION S HIGHEST-EARNING ASSET

A CREDIT CARD PROGRAM CAN BE A CREDIT UNION S HIGHEST-EARNING ASSET CSCU s payments solutions are tailored to what matters serving your members. A CREDIT CARD PROGRAM CAN BE A CREDIT UNION S HIGHEST-EARNING ASSET A Research Brief by: A Credit Card Program Can Be a Credit

More information

Prepaid Cards. An alternative to credit and debit cards. When choosing how to pay for their purchases, consumers have many options.

Prepaid Cards. An alternative to credit and debit cards. When choosing how to pay for their purchases, consumers have many options. General-purpose reloadable prepaid cards Prepaid Cards An alternative to credit and debit cards When choosing how to pay for their purchases, consumers have many options. Cash, check, debit and credit

More information

Renminbi banking business in Hong Kong

Renminbi banking business in Hong Kong Renminbi banking business in Hong Kong by the External Department Hong Kong s renminbi banking business was launched in early 24 to facilitate crossborder tourist spending and to further strengthen economic

More information

T h e G lo b a l D e bi t C ard s I nd ex

T h e G lo b a l D e bi t C ard s I nd ex LAFFERTY T h e G lo b a l C re d i t Card s I nd ex A ND T h e G lo b a l D e bi t C ard s I nd ex w w w. laffe rty. com Introduction Lafferty s Best in Class series of reports provides you with everything

More information

lesson six banking services supplemental materials 04/09

lesson six banking services supplemental materials 04/09 lesson six banking services supplemental materials 04/09 banking terms account Money deposited with a financial institution for investment and/or safekeeping purposes. assets Items of monetary value (e.g.,

More information

Department stores in China merchandise direct sales

Department stores in China merchandise direct sales Department stores in China merchandise direct sales January 2013 I. Introduction In general, department store operators in China generate revenue primarily from commissions on concessionaire sales; other

More information

Concept of Debit Card as a means of payments in Malaysia. The acceptance of electronic payment systems among Malaysian consumers

Concept of Debit Card as a means of payments in Malaysia. The acceptance of electronic payment systems among Malaysian consumers CHAPTER 1: INTRODUCTION DEBIT CARDS IN MALAYSIA Concept of Debit Card as a means of payments in Malaysia The acceptance of electronic payment systems among Malaysian consumers has increased from year to

More information

Compliments Card. Modern and innovative alternative to gift vouchers or cash prizes and bonuses

Compliments Card. Modern and innovative alternative to gift vouchers or cash prizes and bonuses Compliments Card Modern and innovative alternative to gift vouchers or cash prizes and bonuses International and local presence World leader in prepaid services: Activ 40 countries, on 5 continents 38

More information

eservglobal Investor Roadshow January, 2014

eservglobal Investor Roadshow January, 2014 eservglobal Investor Roadshow January, 2014 eservglobal is an internationally recognised, leading provider of solutions that bridge the telco and financial worlds eservglobal: at a glance Comprehensive

More information

Friday, June 5, 2015 3:15 p.m.

Friday, June 5, 2015 3:15 p.m. MCUL & Affiliates 2015 Annual Convention and Exposition Mobile Payments Greatest Opportunity or Biggest Threat? Amy Smith, AAP, CAE President & CEO The Payments Authority Friday, June 5, 2015 3:15 p.m.

More information

Bauhaus International (Holdings) Limited (stock code: 483) FY2007/08 Annual Results

Bauhaus International (Holdings) Limited (stock code: 483) FY2007/08 Annual Results Bauhaus International (Holdings) Limited (stock code: 483) FY2007/08 Annual Results Agenda Financial Highlights Business Review Future Development 2 Financial Highlights Results Highlights For the year

More information

We believe First Data is well positioned to take advantage of all of these trends given the breadth of our solutions and our global operating

We believe First Data is well positioned to take advantage of all of these trends given the breadth of our solutions and our global operating Given recent payment data breaches, clients are increasingly demanding robust security and fraud solutions; and Financial institutions continue to outsource and leverage technology providers given their

More information

Cardholder Lifecycle Management. Jim Sheahan, VP Card Services, FIS

Cardholder Lifecycle Management. Jim Sheahan, VP Card Services, FIS Cardholder Lifecycle Management Jim Sheahan, VP Card Services, FIS Agenda What s changed? What s the same? Opportunities Cardholder lifecycle management Acquisition strategies Activation strategies Usage

More information

Creating Lasting Value With A Point-of-Sale Cash Program

Creating Lasting Value With A Point-of-Sale Cash Program Creating Lasting Value With A Point-of-Sale Cash Program Key insights of Discover Network Cash Over usage to build merchant loyalty and create differentiation A Discover Network White Paper for Merchants

More information

Credit Cards from Shari a Perspective. Dr. Abdulazeem Abozaid Consultant & Shari a Trainer Emirates Islamic Bank

Credit Cards from Shari a Perspective. Dr. Abdulazeem Abozaid Consultant & Shari a Trainer Emirates Islamic Bank Credit Cards from Shari a Perspective Dr. Abdulazeem Abozaid Consultant & Shari a Trainer Emirates Islamic Bank 1 بسم االله الرحمن الرحيم THE FEATURES & USES OF CREDIT CARDS Credit Card provides a revolving

More information

Guidelines for Accepting Credit Cards as a Form of Payment for Education, Registration and Other Fees

Guidelines for Accepting Credit Cards as a Form of Payment for Education, Registration and Other Fees Guidelines for Accepting Credit Cards as a Form of Payment for Education, Registration and Other Fees Background Over the past few years, the use of credit cards as a payment option for purchasing goods

More information

Gift Card Program Description

Gift Card Program Description Program Outline: Electronic Gift Card Benefits Features Processing Statistics What is a Gift Card? A reusable, stored-value card that enables merchants to have an electronic alternative to paper gift certificates.

More information

Welcome to the world of prepaid cards... Contents

Welcome to the world of prepaid cards... Contents Welcome to the world of prepaid cards... This leaflet has been prepared to help you find out more about prepaid payment cards and how you can use them best. Contents Welcome to the world of prepaid cards.................

More information

DBS Bank (China) Limited Debit Card Users Guide

DBS Bank (China) Limited Debit Card Users Guide DBS Bank (China) Limited Debit Card Users Guide Risk Disclosure for Use of Debit Card Terms and Conditions on Debit Card 1 General Provisions 2 Application 3 Account 4 Usage of Debit Card 5 Password 6

More information

Appendices. A. Data Selection For Empirical Analysis. Table A-1 Data Sets from Period 1991 to 2007

Appendices. A. Data Selection For Empirical Analysis. Table A-1 Data Sets from Period 1991 to 2007 Appendices A. Data Selection For Empirical Analysis Table A-1 Data Sets from Period 1991 to 2007 49 Note: Write off to revolving balance ratio was not available from 1991 to 2003. 50 Table A-2 Data Sets

More information

We make cards and payments work for people as a part of everyday life. We bring information to life

We make cards and payments work for people as a part of everyday life. We bring information to life We make cards and payments work for people as a part of everyday life We bring information to life 2 EVRY is a leading IT company in the Nordic region. Through advice, technology and solutions, EVRY brings

More information

Euronet Software Solutions Integrated Credit Card System Improve your organization s marketability, profitability and revenue

Euronet Software Solutions Integrated Credit Card System Improve your organization s marketability, profitability and revenue Secure Financial Transactions Any Time, Any Place Euronet Software Solutions Integrated Credit Card System Improve your organization s marketability, profitability and revenue Serving millions of people

More information

UnionPay, Your access to China & Asia. June 2015

UnionPay, Your access to China & Asia. June 2015 UnionPay, Your access to China & Asia June 2015 UnionPay Updates Chinese equivalent of VISA/Master/AMEX + EFTPOS Funded in 2002 in Shanghai, China Card usage on purchase from 4% to 47% Card issued from

More information

HSBC Foreign Exchange Solutions

HSBC Foreign Exchange Solutions HSBC Foreign Exchange Solutions Connecting Connecting you you to to opportunities opportunities around around the the world world The world is getting smaller every day, day. opportunities Opportunities

More information

The Hurdles Facing Today s Online Merchants

The Hurdles Facing Today s Online Merchants Digital River World Payments Survey Report The Hurdles Facing Today s Online Merchants BlueHornet.com Background At the 2011 E-Commerce Payments & Risk Conference hosted by the Merchant Risk Council (MRC)

More information

STATE BANK OF PAKISTAN

STATE BANK OF PAKISTAN STATE BANK OF PAKISTAN on e-payment Gateway i P a g e Table of Contents ACRONYMS... 1 DEFINITIONS... 2 SCOPE OF THE DOCUMENT... 4 INTRODUCTION... 5 PURPOSE & BENEFITS OF E-PG... 6 FUNCTIONS OF E- PG...

More information

Keynote Speech delivered in the 2007 Financial Planning Conference. Organized by the Institute of Financial Planners.

Keynote Speech delivered in the 2007 Financial Planning Conference. Organized by the Institute of Financial Planners. Keynote Speech delivered in the 2007 Financial Planning Conference Organized by the Institute of Financial Planners 2 November 2007 Best Practice for Financial Planners Alexa Lam Executive Director Intermediaries

More information

Solutions. Payments Network Enhance Consumer Loyalty, Increase Revenue and Improve Your Competitive Edge With Real-Time Payments Solutions

Solutions. Payments Network Enhance Consumer Loyalty, Increase Revenue and Improve Your Competitive Edge With Real-Time Payments Solutions Solutions Payments Network Enhance Consumer Loyalty, Increase Revenue and Improve Your Competitive Edge With Real-Time Payments Solutions Solutions Meet the demands of consumers who expect to make payments

More information

SPEED. A Competitive Advantage In Restaurant Services What it means and how technology provides it. Presented by

SPEED. A Competitive Advantage In Restaurant Services What it means and how technology provides it. Presented by SPEED A Competitive Advantage In Restaurant Services What it means and how technology provides it Presented by NOTE: GO software is now Verifone, Inc. Speed rules! There are 277,208 fast-food outlets from

More information

Kingdom of Bahrain. Bahrain Monetary Agency. Economic Research Directorate. Consumer Guide Issue 1. Credit Cards

Kingdom of Bahrain. Bahrain Monetary Agency. Economic Research Directorate. Consumer Guide Issue 1. Credit Cards Kingdom of Bahrain Bahrain Monetary Agency Economic Research Directorate Consumer Guide Issue 1 Credit Cards January 2005 BAHRAIN MONETARY AGENCY ECONOMIC RESEARCH DIRECTORATE Contents Credit Cards 1 What

More information

and Franchise Packet Payment Processing Overview

and Franchise Packet Payment Processing Overview and Franchise Packet Payment Processing Overview Welcome Dear Marco s Pizza Franchisee, You have many choices of payment processing service providers. How do you choose the one you can trust with such

More information

A new Payments Services Directive and a Regulation on Interchange Fees for card-based transactions Examining key implications for end users

A new Payments Services Directive and a Regulation on Interchange Fees for card-based transactions Examining key implications for end users A new Payments Services Directive and a Regulation on Interchange Fees for card-based transactions Examining key implications for end users On 24 July 2013 the European Commission adopted a legislative

More information

PayEase Payment Gateway

PayEase Payment Gateway PayEase Payment Gateway Your Passport to China Expand your business in China 461 Million Digital Buyers $300 Billion Retail ecommerce Annual sales $1 Trillion Chinese consumers demand the quality and familiarity

More information

The Value of a Payment Gateway. White Paper

The Value of a Payment Gateway. White Paper The Value of a Payment Gateway White Paper The Ever-Evolving Payment Landscape There s no way around it. No matter what size your business is or what industry you work in, if you accept credit cards, keeping

More information

Hang Seng Commercial Card Benefits Directory

Hang Seng Commercial Card Benefits Directory Contents 1. Important Points to Remember 2. Customer Privileges Better Business Expense Management Financial Flexibility Superior Privileges Membership Rewards Programme Comprehensive Protection 3. Payment

More information

Supermarket Chains and Grocery Market in the UK

Supermarket Chains and Grocery Market in the UK Student projects/outputs No.008 Supermarket Chains and Grocery Market in the UK Emma Li MBA2008 China Europe International Business School, China China Europe International Business School, China 699,

More information

PayLeap Guide. One Stop

PayLeap Guide. One Stop PayLeap Guide One Stop PayLeap does it all. Take payments in person? Check. Payments over the phone or by mail? Check. Payments from mobile devices? Of course. Online payments? No problem. In addition

More information

International Travel Tips. Get the most from your Visa card

International Travel Tips. Get the most from your Visa card International Travel Tips Get the most from your Visa card Using Your Visa Card to Make Purchases Abroad Your Visa card is accepted at millions of places worldwide, making it a safe and convenient way

More information

UnionPay: Growth Opportunity for U.S. Merchants

UnionPay: Growth Opportunity for U.S. Merchants UnionPay: Growth Opportunity for U.S. Merchants 1 1 UnionPay Overview 2 UnionPay Established in 2002, headquartered in Shanghai, China A Global Payment Network 150 geographic markets accept UnionPay cards

More information

The Adoption of EMV Technology in the U.S. By Dave Ewald Global Industry Sales Consultant Datacard Group

The Adoption of EMV Technology in the U.S. By Dave Ewald Global Industry Sales Consultant Datacard Group The Adoption of EMV Technology in the U.S. By Dave Ewald Global Industry Sales Consultant Datacard Group Abstract: Visa Inc. and MasterCard recently announced plans to accelerate chip migration in the

More information

Rewarding Your Members

Rewarding Your Members Rewarding Your Members Reinvent Your Credit Union s Rewards Program By Matt Flynn, TMG Director of Client Relations, and Sara Petty, TMG Vice President of Strategic Initiatives Increased competition in

More information

Customer loyalty is hard to come by: Technology is the answer

Customer loyalty is hard to come by: Technology is the answer Customer loyalty is hard to come by: Technology is the answer CARD LINKED MARKETING Gone are the days when a customer would stay with the same bank for 20+ years, taking out mortgages, loans and making

More information

Welcome to the new era of electronic payments. For everyday

Welcome to the new era of electronic payments. For everyday Welcome to the new era of electronic payments For everyday Contents A new dimension of service 2-3 Better Service for you, Better service for your customer Grow your business through a secure alternative

More information

UK Card Payments 2014

UK Card Payments 2014 UK Card Payments 2014 THE UK CARDS ASSOCIATION Payment cards are the most popular non-cash payment method in the UK by volume. They allow cardholders to pay for goods and services easily and conveniently,

More information

E-commerce refers to paperless exchange of business information using following ways.

E-commerce refers to paperless exchange of business information using following ways. E-Commerce E-Commerce or Electronics Commerce is a methodology of modern business which fulfills the need of business organizations, vendors and customers to reduce cost and improve the quality of goods

More information

Doing Business With TSYS our approach to commerce and payments

Doing Business With TSYS our approach to commerce and payments Doing Business With TSYS our approach to commerce and payments www.tsys.com TSYS at a Glance our purpose is to Improve Lives and Businesses by Putting People at the Center of Payments. WHO WE ARE Company

More information

Focus on China Market and Pursue Sustainable Value Growth

Focus on China Market and Pursue Sustainable Value Growth Focus on China Market and Pursue Sustainable Value Growth (Beginning) Distinguished guests, ladies and gentlemen: Good morning. I 'm Wu Zongmin, from China Pacific Property Insurance Company Limited (CPIC

More information

White Paper. The Four Pillars of Mobile Payments Immediate Opportunities

White Paper. The Four Pillars of Mobile Payments Immediate Opportunities White Paper The Four Pillars of Mobile Payments Immediate Opportunities The Four Pillars of Mobile Payments Immediate Opportunities As the trade media continues to focus on the still-fragmented activity

More information

Making Leaders Successful Every Day

Making Leaders Successful Every Day Making Leaders Successful Every Day Succeeding In Global ecommerce Forrester Research Benjamin Ensor Research Director, ebusiness & Channel Strategy March 13, 2013 For internal use only Agenda What s the

More information

The Cards and Payments Industry in China: Emerging Trends and Opportunities to 2019

The Cards and Payments Industry in China: Emerging Trends and Opportunities to 2019 Brochure More information from http://www.researchandmarkets.com/reports/3448813/ The Cards and Payments Industry in China: Emerging Trends and Opportunities to 2019 Description: The 'The Cards and Payments

More information

Payments Transformation - EMV comes to the US

Payments Transformation - EMV comes to the US Accenture Payment Services Payments Transformation - EMV comes to the US In 1993 Visa, MasterCard and Europay (EMV) came together and formed EMVCo 1 to tackle the global challenge of combatting fraudulent

More information

Choosing the Right Merchant Account Provider. 5 Essential Factors Every Business Owner Must Understand Before Choosing a Payment Processing Provider

Choosing the Right Merchant Account Provider. 5 Essential Factors Every Business Owner Must Understand Before Choosing a Payment Processing Provider Choosing the Right Merchant Account Provider 5 Essential Factors Every Business Owner Must Understand Before Choosing a Payment Processing Provider 5 Essential Factors Starting to accept credit cards at

More information

Using Credit to Your Advantage Credit Cards and Loans Participant Guide

Using Credit to Your Advantage Credit Cards and Loans Participant Guide Hands on Banking Using Credit to Your Advantage The Hands on Banking program is a free public service provided by Wells Fargo. You may also access the program anytime at www.handsonbanking.org & www.elfuturoentusmanos.org

More information

Review of Method of Payment Fees in Taxicabs

Review of Method of Payment Fees in Taxicabs STAFF REPORT ACTION REQUIRED Review of Method of Payment Fees in Taxicabs Date: June 14, 2011 To: From: Wards: Reference Number: Licensing and Standards Committee Jim Hart, Executive Director, Municipal

More information

Report on Credit Card Statistics, 1 st Half of 2007

Report on Credit Card Statistics, 1 st Half of 2007 Research and Statistics Department Monetary Authority of Macao Since December 2006, the Monetary Authority of Macao has conducted the Credit Card Survey (CCS) on a regular basis in view of the growing

More information

Your Bank + Elan Financial Services =

Your Bank + Elan Financial Services = Your Bank + Elan Financial Services = Credit Card Issuing Alliance Leveraging the power of your brand. Strengthening your suite of credit card products. Partnership for your success. Collaborative Partnership

More information

Visa Business Issuer Platform Overview. Help business customers on their journey to success

Visa Business Issuer Platform Overview. Help business customers on their journey to success Visa Business Issuer Platform Overview Help business customers on their journey to success 1 Get big ideas for your small business portfolio. Now is the time to make your Visa Business portfolio work harder

More information

TOP TRUMPS Comparisons of how to pay for goods and services online

TOP TRUMPS Comparisons of how to pay for goods and services online Cash Cash is legal tender in the form of bank notes and coins Small value purchases e.g. cafes, shops Pocket money Repaying friends Cash is physically transferred from one person to the next, usually face-to-face

More information

Building Customer Loyalty with Prepaid Cards

Building Customer Loyalty with Prepaid Cards Building Customer Loyalty with Prepaid Cards 2 Introduction Retail purchases with prepaid cards are expected to exceed $200 billion in 2014, or five percent of all U.S. retail spending. Some well-known

More information

PIN reset. Al Rajhi Bank is always looking forward to support his customers by providing them the

PIN reset. Al Rajhi Bank is always looking forward to support his customers by providing them the Content Subject Page 1 PIN reset 3 1 - a Log in to Al Mubasher (online banking) 4 1 - b Insert the received OTP 4 1 - c Choose PIN 5 1 - d Choose PIN RESET 5 1 - e Choose the required card to be PIN reseted

More information

European Payment Card Systems for the 21 st Century. A paper from MasterCard Europe

European Payment Card Systems for the 21 st Century. A paper from MasterCard Europe U European Payment Card Systems for the 21 st Century A paper from MasterCard Europe For four decades, MasterCard Europe 1 has been working successfully with European banks to deliver secure, efficient

More information

The Comprehensive, Yet Concise Guide to Credit Card Processing

The Comprehensive, Yet Concise Guide to Credit Card Processing The Comprehensive, Yet Concise Guide to Credit Card Processing Written by David Rodwell CreditCardProcessing.net Terms of Use This ebook was created to provide educational information regarding payment

More information

SBI CARD FACTSHEET. An Overview

SBI CARD FACTSHEET. An Overview SBI CARD FACTSHEET An Overview A Leading Issuer of Credit s in India, SBI s, is a joint venture between State Bank of India, the country's oldest and largest bank, and GE Capital. It offers Indian consumers

More information

China Financial Market and Case Study for Capital Operation. Liu Ming

China Financial Market and Case Study for Capital Operation. Liu Ming China Financial Market and Case Study for Capital Operation Liu Ming o Why we are interested in the capital market Contents o Capital Market n Equity markets n Bond markets n Derivatives markets

More information

A Guide to Prepaid Cards

A Guide to Prepaid Cards A Guide to Prepaid Cards 1 A Guide to Prepaid Cards As online sales increase year on year and contactless technology makes physical purchases quicker and easier, the way UK consumers transact has changed.

More information

Common Mistakes to Avoid When Selecting a Payment Processor

Common Mistakes to Avoid When Selecting a Payment Processor 7 Common Mistakes to Avoid When Selecting a Payment Processor Introduction Selecting a payment processor is one of the most important steps to getting paid online. But comparing solutions for accepting

More information

UNIFIED e-paymnts GATEWAY

UNIFIED e-paymnts GATEWAY UNIFIED e-paymnts GATEWAY Electronic Payments in Governments & Beyond Danson Muchemi Chief Executive Officer, Jambopay JamboPay 2015 About Jambopay Jambopay is an innovative payments service provider.

More information

Payment Acceptance Strategies in a Global Ecommerce Environment

Payment Acceptance Strategies in a Global Ecommerce Environment A division of Pivotal Payments Payment Acceptance Strategies in a Global Ecommerce Environment Presented by: Patrick Huynh, Senior Vice President, Client Solutions Introduction About GlobalOne GlobalOne

More information

The Pitfalls of Cross-Border Payments: A Merchant s Guide to Global Expansion

The Pitfalls of Cross-Border Payments: A Merchant s Guide to Global Expansion The Pitfalls of Cross-Border Payments: A Merchant s Guide to Global Expansion Maximizing Payments Performance Table of Contents Cross-Border Retail s Hidden Challenges...2 Initial Setup...3 Regulations

More information

The following sections discuss these findings in greater depth.

The following sections discuss these findings in greater depth. Research and Analysis: How Has Reform Legislation Affected Credit Card Advertising? Jon Swallen Senior Vice President of Research, Kantar Media s Intelligence Sector Background The credit card industry

More information

prepaid Prepaid Launch the ideal prepaid card scheme for your business quickly and efficiently

prepaid Prepaid Launch the ideal prepaid card scheme for your business quickly and efficiently prepaid Launch the ideal prepaid card scheme for your business quickly and efficiently services can help you manage everything from gift vouchers and social welfare benefits, to meal cards, corporate rewards,

More information

Developing a Credit Card Strategy Leveraging Big Data

Developing a Credit Card Strategy Leveraging Big Data Elan Financial Services 2014 Developing a Credit Card Strategy Leveraging Big Data Big data presents great opportunity for targeting and incentivizing customers with valuble card offers. By Elan Financial

More information

Questions & Answers clarifying key aspects of the SEPA Cards Framework

Questions & Answers clarifying key aspects of the SEPA Cards Framework Doc. EPC075-08 (Version 10.0) 11 June 2008 Questions & Answers clarifying key aspects of the SEPA Cards Framework Circulation: Publicly available Restricted: No SEPA a Guide to the Single Euro Payments

More information

CO-OP Prepaid Cards. Give your members options.

CO-OP Prepaid Cards. Give your members options. CO-OP Prepaid Cards Give your members options. Strengthen loyalty...decrease attrition... improve service. Offer your members the convenience of prepaid cards. SM CO-OP PREPAID CARDS Prepaid cards for

More information

White paper. Focus on value added services by network companies a paradigm shift. Rahul Kaushal, Ramakant Mittal

White paper. Focus on value added services by network companies a paradigm shift. Rahul Kaushal, Ramakant Mittal White paper Focus on value added services by network companies a paradigm shift Rahul Kaushal, Ramakant Mittal Introduction Network association is the most critical player in the payment card industry.

More information

Position Paper. issuers. how to leverage EC s regulation proposal. on interchange fees for card-based payment transactions

Position Paper. issuers. how to leverage EC s regulation proposal. on interchange fees for card-based payment transactions Position Paper issuers how to leverage EC s regulation proposal on interchange fees for card-based payment transactions The issuing landscape has dramatically changed over the last few years increased

More information

Open Payments and Pre-Paid Products in Transit

Open Payments and Pre-Paid Products in Transit Open Payments and Pre-Paid Products in Transit Wendy Humphrey Vice President, Business Development March 2010 Copyright 2010, First Data Corporation. All Rights Reserved. 1 Types of Bank Cards Credit card-

More information

Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges

Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges Zhang Ying, Senior Economist In recent years, as the internationalization of the RMB has been steadily carrying out,

More information

Pricing Guide. Banking Specialist. Make banking choices to suit your financial needs. Unlimited Pricing. Pay-As-You-Use and Fee Saver.

Pricing Guide. Banking Specialist. Make banking choices to suit your financial needs. Unlimited Pricing. Pay-As-You-Use and Fee Saver. Pricing Guide Make banking choices to suit your financial needs We believe in giving you the choice of how you do your banking, so we don't charge you any subscription fees for Online Cellphone and Telephone

More information

Tariff of Banking Charges

Tariff of Banking Charges Tariff of Banking Charges Effective from 22 July 2013 Bank of China (UK) Limited From UK: 0845 602 7083 From overseas: +44 20 7929 3407 www.bankofchina.com/uk Bank of China (UK) Limited Registered in England

More information

China Merchants Bank Co., Ltd. 2013 Annual Results Announcement

China Merchants Bank Co., Ltd. 2013 Annual Results Announcement China Merchants Bank Co., Ltd. 2013 Annual Results Announcement Forward-Looking Statement Disclaimer This presentation and subsequent discussions may contain forward-looking statements that involve risks

More information

Introduction to Bankcard Basics

Introduction to Bankcard Basics Introduction to Bankcard Basics Global Vision Group August 2006 Page -1- Contents Topic Background The Players Transaction Authorization and Settlement Types of Card Products & Competition Credit Decision

More information

End of Duopoly in Credit Card Payment Scheme Industry

End of Duopoly in Credit Card Payment Scheme Industry IOSR Journal of Economics and Finance (IOSR-JEF) e-issn: 2321-5933, p-issn: 2321-5925.Volume 4, Issue 1. (May-Jun. 2014), PP 67-76 End of Duopoly in Credit Card Payment Scheme Industry Tapomoy Koley (B.

More information

Competition policy brief

Competition policy brief Issue 2015-3 June 2015 ISBN 978-92-79-38783-8, ISSN: 2315-3113 Competition policy brief Occasional discussion papers by the Competition Directorate General of the European Commission The Interchange Fees

More information