China UnionPay is expanding where holders of its branded cards may shop to include more than 8 million online merchants based overseas, the card network announced Dec. 27.
Once the policy takes effect Jan. 1, UnionPay cardholders may use their cards to shop with online retailers based in Hong Kong, the United States, Japan, South Korea, Singapore, Australia, New Zealand and some European countries, the network noted in a press release.
Cardholders historically have been unable to use their cards at many global online retailers because UnionPay processes only yuan-denominated transactions, a network spokesperson tells PaymentsSource. With the new measure, cardholders may shop at partner retailers that quote final prices in yuan. They also may continue to link their cards to PayPal to make online purchases, he adds.
UnionPay increasingly wants to focus on cross-border payments because the relatively high transaction fees help drive revenues, Weidong Wang, an analyst from iResearch Consulting Group, tells PaymentsSource.
“This initiative can contribute extensively to improve the overall business for UnionPay, and stakeholders would be more confident of its future,” Wang adds.
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