China Unionpay and Japanese credit company Mitsubishi UFJ Shinpan Card Co. have jointly launched a “gold” credit card in Japan, China's largest card issuer announced on March 17.
The card will be UnionPay's first premier yen-denominated credit card in Japan, according to the issuer. China Unionpay previously has issued regular yen-denominated credit cards, prepaid cards and debit cards in Japan with Japan's Sumitomo Mitsui Card Co., Travelex Corp. and Bank of China.
All of China Unionpay's cards target businessmen, tourists and students who move frequently between China and Japan. They may use the cards at ATMs and merchants affiliated with the Unionpay network.
To date, China Unionpay has issued cards in 12 countries, including Japan, South Korea, Singapore, Thailand and Russia. “But it is still a long way before [China Unionpay] can compete with global card issuers such as Visa,” Hao Hongrui (Hao is the family name), analyst at Beijing-based consulting company DHD Consulting Co. Ltd., tells PaymentsSource.
Lack of capital and advanced network technologies are both major hurdles for China Unionpay's global strategy, she says.
For example, unlike Visa Inc. and MasterCard Worldwide, China Unionpay is not listed in any stock exchange, which leads to much smaller capital, and it seriously slows down global expansion, Hao adds.
