UnionPay mobile payments on the upswing
UnionPay, China's national bank card payment processor, has seen an increase in its overseas mobile payment transactions even though traditional bank cards remain the most popular payment tool among Chinese travelers.
Figures from the Shanghai-headquartered company show that its volume of overseas mobile transactions completed via the UnionPay Mobile QuickPass — a near-field communication technology payment method — and QR codes increased 150 percent year-on-year during the Chinese New Year holiday period from Feb 15 to 21. The number of mobile transactions was three times higher than in 2017.
Furthermore, an increasing number of overseas businesses have started to offer UnionPay QR code payment services. For example, merchants in countries such as Nepal, Djibouti and Kenya have introduced UnionPay QR code payment services in the led-up to the 2018 Chinese New Year.
In Australia, Emporium Melbourne launched UnionPay card payment services in February. Over in Djibouti, the number of stores offering UnionPay's QR code payment service will reach about 500 by the end of March, according to the company.
Many businesses in Indonesia, Cambodia and Mauritius will also launch the service over the next few months.
UnionPay cardholders can currently make QuickPass payments in 18 countries and regions, including Singapore, Australia and Russia. Some stores in Japan and Hong Kong have also offered exclusive discounts to UnionPay QuickPass users.
"Accepting UnionPay makes for simple and pleasant shopping experiences for Chinese tourists who visit during the Spring Festival holiday," said Kate Rooney, manager of Emporium Melbourne.
Figures from UnionPay show that its services are available at more than 23 million businesses and 1.64 million ATMs in 168 countries and regions.
Growing disposable income and favorable visa policies have pushed the number of outbound Chinese travelers to new heights. Between 2012 and 2016, the number of Chinese outbound travelers soared 47 percent to 122 million from 83.2 million, according to the China National Tourism Administration.
The United Nations World Tourism Organization also reported that Chinese travelers spent $261.1 billion in 2016, the most in the world and double that of the United States.
As such, payment service providers are looking to capitalize on the boom by offering incentives to users. For example, tourists who use WeChat Pay, a Chinese mobile wallet that presently has about 800 million users, stand to enjoy cash rebates and discounts if their total expenditure crosses the $75 threshold.
"As mobile payment is increasingly welcomed by outbound tourists from the Chinese mainland, WeChat Pay plans to constantly invest in its cross-border business, with the aim of duplicating the domestic WeChat lifestyle overseas," said Grace Yin, WeChat Pay director for overseas operation.
Alipay, the mobile payment leader in China and WeChat Pay's biggest rival, has also set its sights on seizing a larger share of the overseas market. Apart from making its payment services available in overseas scenic spots and shopping malls, Alipay's parent company Ant Financial has also invested or partnered with local financial technology firms to boost its footprint. Ant Financial's portfolio now includes India's Paytm, South Korea's Kakao Pay, Thailand's Ascend Money and Mynth from the Philippines.
