Overview of UnionPay. All Roads Lead to China

Transcription

1 Overview of UnionPay All Roads Lead to China

2 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? Leveraging a customer base of 755 million.

3 Understanding UnionPay China UnionPay was established in March 2002 by the People s Republic of China. UnionPay is a shareholder financial service institution invested in by over 409 domestic China government banks. UnionPay is the national card brand of China with a 98% market share. UnionPay touts having 755-million cardholders with 4.3 billion cards in circulation and now ranks as the #1 card brand in the world (over Visa & MasterCard) for most cards issued. Conclusion: Accepting the UnionPay card is tantamount in attracting Chinese cardholders and their purchasing power!

4 Understanding UnionPay The only payment network in China (2002) Over 4.3 Billion Cards issued 10% (400 Million) Credit Cards 90% are debit cards (PIN numbers are required to authenticate a transaction)

5 Understanding UnionPay Debit Cards Credit Cards Signature Credit Has Daily spending limits Pin Debit only limited to the funds available in the account, allowing large purchase such as Jewelry, automobiles, etc In order to process PIN debit transactions, a PIN number must be entered.

6 Processing UnionPay Transactions in the US Merchants Acquirers Networks Association Credit Transaction Merchant All Acquirers Debit Transaction TPD is a registered ISO of Elavon & Planet Payment

7 Merchant Advantages with TPD and UnionPay Competitiveness New Revenue Source Large sales Lower transaction fees on Credit and Debit No purchase limit on Debit Marketing Assistance

8 The Potential Markets

9 The Chinese Market in North America and US Territories*

10 The Growth Market China visitors to the US Case Study, Boston: In an 11 month period they went from one city of origin (Beijing), 4 flights per week, to three cities and 11 direct flights per week. Hainan Airines Beijing Boston 4x week, started June Hainan Airlines Shanghai Boston 3x week, starting June Cathay Pacific Hong Kong Boston 4x week starting May 2, 2015

11 China s Online Shopping The total transaction value of China online apparel market exceeded RMB434.9 billion (USD70.75 billion) in 2013 with a YoY increase of 42.8%, which accounted for 23.1% of the whole China online shopping market. It is estimated that in 2014, the total transaction value would increase to RMB615.3 billion (USD100.1 billion) with a YoY increase of 41.5%, accounting for 22.1% of the whole China online shopping market.

12 Marketing Channels with TPD and UnionPay UnionPay In-House Issuing Banks China Travel Bureau Promotional Channels Traditional Media Online Media Social Media

13 Marketing Channels with TPD and UnionPay Category Format Details Banks Internet 10+ domestic banks: website, statements, Short Messages Service (SMS). Major overseas banks: website, statements, SMS. Major portal, travel and lifestyle websites (eg. Ctrip ) BBS/ KOL/ Top topic (post) Vertical Search Engine (i.e. Ctrip, Qunar ) Search Engine ( eg. Baidu) 70% card issuance of domestic banks over 200,000 clicks per day Cover most popular KOL/BBS in China +34MM user, +74MM monthly visits, Targeted segment market Dominated Search Engine in China Offline Media (TBD) Travel Agencies UnionPay In-house Print ads targeting high-end consumers ( eg. Air Magazine, Modern weekly ) China Major Radio Channel (eg. Love radio) Aviation, lifestyle, fashion or finance, etc. Major radio channels in China Major travel agencies: product guide, notice of departure, +300,000 outbound tourists monthly website. Press release Corporate website SMS Official UnionPay Weibo (Verified Account) Official UnionPay Wechat (Verified Account) Major domestic news agencies Daily click>300, M users +700,000 followers 450,000 followers

14 Marketing Programs

15 Travel Payments Direct Founded in February 2013 by a core group of payments professionals possessing 20-years of collective industry expertise within the travel and tourism niche. TPD is a registered ISO of Elavon & Planet Payment Our unique value proposition is simple and concise: Stand Alone processing for online bookings, ecommerce, and retail card-swipe acceptance for all UnionPay Card types.

16 TPD registered Acquirers Travel Payments Direct Stand Alone or Integrated processing of domestic and International MasterCard, Visa, Discover, AMEX, JCB, UnionPay, and 122 types of localized payments Multicurrency presented in native currency, settled in dollars in two business days Every solution is Level I PCI and EMV Certified Elavon Card Present Retail, Restaurant and Mobile 1 Trillion dollars in UnionPay processed 600,000 total merchants Planet Payment Ecommerce & Multicurrency 22 Countries Publicly Traded on NASDAQ

17 Becoming China Ready Translation services & localization within China: SEO & digital marketing within China Fulfillment services selling to Chinese customer & getting your products door to door. Interpreting & translation services via 24/7 Hotline Culturally prepare your property, store & or attraction for the Chinese traveler

18 Summary UnionPay would like to promote proper acceptance of cards staring in 62. There are 3.9 Billion UnionPay debit cards that require a PIN number to work.

19 For more information Steve Gent (207) Peter Thiemann (404)