Flourishing Tourism from China Benefits Merchants supporting UnionPay
Last updated on January 6th, 2020
As per a recent press release, Chinese state-run card payment network, UnionPay has attracted 28.5 million merchants outside of mainland China. The recently reported hike is only 0.5 million more than the 28 million merchants in September 2019. Out of these, nearly four million merchants are ardent supporters of both mobile UnionPay’s payment services and card services. This accounts for almost one million jump, as compared to 2019.
The mobile payment services of UnionPay ensure QR code payments. Less than a year after the launch of the application, the mobile app crossed 150 million downloads by April 2019. In order to captivate more users, UnionPay will have to extend its international acceptance network and its mobile payments services in particular.
By gaining support internationally, UnionPay will attract transactions made by Chinese tourists and will also build loyalty. As per the analysis of an American firm, Nielson Holdings, 2018 witnessed Chinese tourists making 140 million outbound trips, up 13.5 percent year-over-year (YoY). In 2019, the average annual spend per person when travelling was estimated to rise to $6,706.
The expanding acceptance network of UnionPay will help it to compete for the maximum expenditure of users. Since most of its cardholders depend on it to process payments both domestically and internationally, this update increases their chances of using it more often.
As other mobile payment service providers like Alipay and We Chat Pay are already having a great user base, the acceptance of UnionPay mobile payment offerings will help it gain an upper hand over others. Most of the Chinese travellers prefer online payments and a good international user base will work wonders for the network.
Its Chinese user base makes UnionPay the world’s largest card network. The network accounted for 45 percent of payment cards in circulation at the end of 2018, but made up only one percent of the world cards, excluding China.
As a part of its initiatives, UnionPay International (UPI) has tied up with Singaporean fintech, MoovPay in an exclusive partnership for cross-border cashless payment services in the Middle East. The news was announced in a press release on January 1. The agreement will help businesses in the Arab world to use the range of payment methods in UPI and make payments via MoovPay’s online payment solutions.
Speaking about the partnership, MoovPay CEO Ryan Gwee said, “Our Dubai office will serve as a bridge between the Middle East and Asia Pacific, as well as a springboard for expansion into Europe, helping European merchants tap into both the Middle East and Chinese markets, particularly in e-commerce and mobile applications.”
As per UnionPay, the extended user base is mainly due to a boom in the outbound tourism from China. The World Tourism Organization claims that in year 2019, outbound tourism rose about 14 percent.
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