All South Korean point-of-sale terminals now accept China UnionPay cards through a deal with South Korea’s BC Card Co., the companies announced Oct. 21.
“This is the first time China UnionPay cards achieve full acceptance by a foreign country with the signature-verification method,” Kongping Wang, a spokesperson for China UnionPay Co. Ltd., China’s sole card network, tells PaymentsSource.
The deal is not reciprocal. However, in April, BC Card began offering the BC Global Card, which provides international services through China UnionPay as well as through Discover, Japan’s JCB and Diners Club merchants and ATM networks.
More than 1.1 million South Korean merchants now accept UnionPay cards, enabling Chinese tourists more payment options.
China is South Korea’s second largest tourist source, with 1.9 million Chinese tourists visiting Korea in 2010, says Wang. Most of the tourists carry China UnionPay cards, he says.
China UnionPay cardholders may use both debit and credit cards in South Korea and use either PIN or signature verification methods. In addition, they can withdraw cash from half of the ATMs in the country, Wang says.
But the deal is about more than just expanding the acceptance of China UnionPay cards in South Korea, says Meng Zhang, an analyst with Beijing-based research firm Analysys International.
“It will also allow for more promotional opportunities in South Korea,” she tells PaymentsSource.
BC Card is Korea's largest payment settlement company, with eleven participating financial institutions–Woori Bank, SC First Bank, Hana Bank, National Agricultural Cooperative Federation, Industrial Bank of Korea, Kookmin Bank, Daegu Bank, Busan Bank, Kyongnam Bank, Citibank Korea and Shinhan Card.
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