Harrods Managing Director Michael Ward speaking during a news conference to announce Harrods' acceptance of UnionPay debit cards at its iconic London store. Provided to China Daily

Global trade

 

UnionPay enjoys close to 100 percent recognition in Chinese households, according to researcher ACNielsen. Its subsidiary, UnionPay International Co, which launched in December 2012, is dedicated to operations in overseas markets to accelerate the brand's integration into the global financial market, said Su Ning, board chairman of China UnionPay and UnionPay International.

More than 60 commercial banks from the Chinese mainland and other economies had become members of UnionPay International by the beginning of March.

Liu Shiyu, deputy chief of the central bank, said he hoped UnionPay International would become a widely recognized, mainstream brand in the global payment market.

In the first half of 2012, 42.7 percent of social retail goods were paid for using bank cards in China. A growing number of Chinese enterprises and individuals were using China UnionPay cards for cross-border settlements, accelerating the internationalization of the yuan, said Liu.

China UnionPay has already set up an extensive network in China. UnionPay International will help extend its business in overseas markets, said Liu.

"The launching of UnionPay International will help boost Shanghai's presence in the global financial market," said Tu Guangshao, vice-mayor of Shanghai.

Shanghai is striving to become an international hub for the innovation, trading, pricing and clearing of yuan products by 2015. UnionPay International is expected to play a role in efforts toward that goal, said Tu.

Mobile payment

China UnionPay set up its headquarters in Shanghai in 2002. The launching of UnionPay International is expected to attract more resources to Shanghai to help the city become an international financial center, said Tu.

China UnionPay currently has a share of more than 20 percent in the global payment market in term of business volume and is among one of the top three payment card brands in the world, according to the ACNielsen report.

To expand its market share, China UnionPay's recent efforts to develop more channels are reaching into mobile payment, including Near Field Communication technology-backed payment methods, in which transactions can be conducted by swiping a cellphone across a screen.

On Feb 23, China Mobile, the world's largest mobile network operator, and China UnionPay announced they had completed integration of their Near Field Communication "trusted service manager" platforms.

According to statistics from the Ministry of Industry and Information Technology, China now has more than 1 billion mobile phone subscribers, from which will emerge a large market for mobile payment enabled by integration of bank cards and mobile phones.

China UnionPay is working with France's Gemalto to build a secure mobile Near Field Communication ecosystem that will make mobile phones safe carriers for the billing of transactions.

"It's a natural way forward to develop mobile payment in a society with a huge demand for time-saving transaction without the need to key in a PIN or give a signature," said Wu Chaohua, a 26-year-old Shanghai programmer who said he will buy the "mobile phone wallet" service as soon as it is launched in China.

Contact the writer at wuyiyao@chinadaily.com.cn