Monday, March 18, 2024
The launch ceremony for Explore China Your Way with UnionPay: China UnionPay Payment Service Optimization – Project Excellence 2024 took place in Shanghai on March 15. Mr. Zhang Qingsong, Member of the CPC People’s Bank of China (PBOC) Committee and Deputy Governor of the PBOC, along with Ms. Xie Dong, Vice Mayor of Shanghai, graced the occasion with their presence and delivered speeches. Notable attendees included Mr. Wang Ping, Deputy Secretary-General of Shanghai Municipal People’s Government, Mr. Jin Penghui and Mr. Liu Xingya, Deputy Directors of the Shanghai Head Office of the PBOC, Mr. Wang Sheng, Deputy Director-General of the PBOC Payment and Settlement Department, as well as executives from China UnionPay, such as Mr. Dong Junfeng, Mr. Shao Fujun, Chairman, and Mr. Cai Jianbo, President. The audience also comprised representatives from Shanghai municipal authorities, major Chinese banks, acquirers, merchants, overseas regulators, international partners, and global card schemes.
Recently, the State Council issued guidelines to enhance payment services in China, aiming to streamline services and cater to diverse user preferences. These guidelines underscore the government’s commitment to the payment industry’s development, offering a roadmap for its future growth. They emphasize the need for a diverse payment ecosystem that accommodates various options and fosters an inclusive and convenient environment, vital for the industry’s high-quality development.
In response to these guidelines, China UnionPay has launched Project Excellence 2024 to improve payment convenience for seniors and international visitors. This initiative, co-funded by industry participants, focuses on upgrading acceptance terminals, enhancing signage, and increasing publicity in key cities and sectors. With an initial investment of CNY 3 billion, UnionPay will lead efforts in 41 key cities and 26 high-frequency use cases across eight categories. By offering comprehensive payment solutions encompassing cards, QR codes, OEM pay products, and cash withdrawals, Project Excellence 2024 aims to drive parallel development of mobile, card, and cash payments. The project kicks off in Shanghai with year-long marketing campaigns under the theme Explore China Your Way with UnionPay, aimed at providing more discounts, options, and a superior payment experience.
During the event, Mr. Zhang Qingsong, Deputy Governor of the PBOC, stated that the rapid development and accelerated penetration of mobile payment in China in recent years have been pivotal in reducing transaction costs and promoting financial inclusion; however, new challenges have also emerged, such as the digital divide for the elderly population and barriers for international visitors to China. To implement the decision and arrangements by the central government, the PBOC has swiftly set up a dedicated working group to put in place a series of measures in line with the State Council guidelines. He acknowledges China UnionPay’s quick action to pool resources with other parties, and encourages all entities to strengthen synergy and provide the resources necessary to achieve substantial results in making payments more convenient. Shanghai, as one of the main destinations for inbound travelers, has gained valuable experience in supporting the China International Import Expo (CIIE). He hopes that the city can continue to set a good example in effectively implementing more measures aiming at increasing payment convenience. The PBOC will work with relevant parties, further develop payment use cases, and coordinate efforts to address any shortcomings and weaknesses. It will make payment services more heart-warming and broadly-covering so as to contribute to China’s high-standard opening up, an optimized business environment in China, as well as greater happiness and sense of gain of the people.
Ms. Xie Dong, Vice Mayor of Shanghai, said that payment is the foundation of economy and finance, and plays a crucial role in facilitating people’s lives, optimizing the business environment, and building a thriving consumer market. The PBOC has guided all parties in the payment industry to establish a multi-layered and broadly-covering acceptance network, which enables China to become a global leader in payment services. Shanghai is the largest clearing center in the world for card-based transactions, where China UnionPay has attracted numerous businesses upstream and downstream of the industry chain to form a cluster. As the city receives a large number of international visitors each year and is also one of the first in China to enter an era of aging society, choosing Shanghai as the first stop for Project Excellence 2024 holds special significance. She believes that Project Excellence can enable senior citizens and international travelers among others to feel accepted and welcomed, and make payment services in Shanghai more accommodating. The Shanghai municipal government will fully support the Project, and it stands ready to work with all parties including the PBOC to implement the requirements listed in the State Council guidelines, aiming to develop the Shanghai Solution that bridges the digital divide and improves the multi-layered as well as diversified payment service system. Together, all parties can contribute to business environment optimization and the high-quality social and economic development.
Mr. Dong Junfeng from China UnionPay pointed out that payment service optimization is a national policy and a shared responsibility of all industry participants. China UnionPay has been implementing the strategic decisions by the central government and the work arrangements of the PBOC by fulfilling its pivotal role as a card scheme. He hopes that through Project Excellence 2024, China UnionPay can inspire other industry stakeholders to contribute their resources, promote the parallel and complementary development of card, mobile and cash payments, and respect and support customer’s rights to choose payment tools. Project Excellence 2024 is a major initiative that connects different links of the payment industry as well as a systematic one that calls for consensus and coordination across the payment industry in geographies both in and outside China. Under the leadership of the PBOC and local governments, China UnionPay will team up with banks, China UMS, and acquirers in and outside China’s mainland, and strive for extensive availability of full solutions in all use cases across China. Furthermore, UnionPay will enhance collaboration with banks and payment institutions, expedite payment code interoperability, strengthen partnership with Chinese clearing institutions, and further engage in consultations with other international card schemes to jointly establish a convenient, open and inclusive payment ecosystem. Ultimately, UnionPay products will be easy to use in every use case, offering a superior experience, more options, and higher value for the elderly and international visitors to China.
During the ceremony, China UnionPay unveiled 29 significant business accomplishments spanning international card issuance, overseas e-wallets, and acceptance within China. Noteworthy among these were agreements inked with partners from the Philippines, Australia, and Pakistan for the issuance of three million UnionPay cards. Moreover, UnionPay QR payments are now supported by ten major wallets, including AEON in Hong Kong SAR, OCBC in Singapore, and LPB e-wallet in Vietnam, potentially reaching 60 million customers. Over ten prominent online and physical merchants such as Meituan, Trip.com, Pinduoduo, JD.com, and Shouqianba now accept international UnionPay payment products. Additionally, vehicles from Hong Kong and Macao can seamlessly transact at multiple parking lots and tollgates in Guangdong Province when traveling to the mainland.
At the same event, UnionPay sealed collaboration pacts with Ctrip Financial Services and China Tourism Group to enhance cross-border payment services for international visitors to China, marking a deeper partnership between the payment and tourism sectors aimed at enhancing service for inbound travelers. These collaborations reflect concerted efforts by relevant industries. Themed marketing campaigns targeting these travelers were also launched alongside Project Excellence 2024, accessible at visa centers, airlines, online travel agencies, and over 100,000 merchants across Shanghai, Guangdong, Zhejiang, and Shenzhen. Nearly 20 issuers from countries like South Korea, Thailand, and Kazakhstan will offer cardholders up to 12% cashback when using UnionPay cards in China. Furthermore, UnionPay’s Travel Mate Asia, featuring popular mainland Chinese destinations, will undergo upgrades, expanding its coverage and benefits.
As a pivotal financial infrastructure in China and a major global card scheme, China UnionPay remains committed to its founding principle of “Payment for the People” and continues to foster collaboration with industry stakeholders. With its comprehensive payment solutions applicable across locations, vehicles, and modes, China UnionPay strives to simplify payments for groups such as seniors and international visitors to China. While enhancing services like card acceptance and ATM cash withdrawal, UnionPay has introduced a senior-friendly version of its app, enabling the elderly to enjoy the benefits of digital payments. Furthermore, UnionPay has issued over 230 million cards outside mainland China, launched nearly 200 UnionPay-powered e-wallets, and expanded its acceptance network to 183 countries and regions, establishing itself as a global payment solution catering to cardholders worldwide in their daily lives and endeavors.
Saturday, April 27, 2024
