Maverick China Third-Party Payment Profiles: China UnionPay

Maverick China Third-Party Payment Profiles: China UnionPay published by Maverick China Research in August, 2007. This report consists of 24 Pages and the price starts from US $ 1000.

Introduction

Abstract

Our series of third-party payment company profiles begins with an in-depth look at China UnionPay (CUP), China' s only inter-bank fund transfer network and the gateway to all RMB-denominated bank payments in China. In this report, we study CUP' s expanding role in domestic and international RMB bank transfers and payments, we analyze its competitiveness with payment giant Visa International, and evaluate partnership opportunities for payment network and technology companies in China and abroad.

Key Findings:

• Approximately 500 million CUP branded bank cards have been issued in China, of which only 14 million are credit cards.
• CUP bank card payments reached up to 30% of all consumer retail purchases in China' s tier-one cities.
• Through subsidiary companies, CUP also offers telephone payment, online payment, and mobile payment services.
• CUP is open to working with outside companies that provide best-ofbreed technology in building its payment network.

Table of Contents

1 Industry Overview: Key Factors Shaping Third-Party Payments in China

• 1.1 Continued preference for cash payments, but bank card payments rising
• 1.2 Credit card use remains low; debit cards widespread
• 1.3 Limited coverage of non-cash payment services
• 1.4 China UnionPay' s bank card monopoly
• 1.5 Quasi-online payment systems an interim solution
• 1.6 Two ISPs, 162 million Internet users
• 1.7 Two mobile operators, 500 million subscribers
• 1.8 Contactless smartcard use increasing but largely limited to buses and subways
• 1.9 Government regulations and the “national interest”

2 China UnionPay: The Gateway to China' s Payment Industry

• 2.1 Ownership, management team, investors
  • 2.1.1 Major subsidiaries
• 2.2 Business Performance, Revenue Model, Users
• 2.3 Services and coverage
• 2.4 Markets and channels
• 2.5 Marketing and branding
• 2.6 Partners
• 2.7 Users figures and profile
• 2.8 Competitive analysis: strengths and weaknesses
• 2.9 Outlook

List of Figures

• Figure 1: Credit cards issued in China and in the US (M)
• Figure 2: Internet Users in China, 2001-2006
• Figure 3: Mobile Subscribers in China, 2002-2010F (M)
• Figure 4: China government groups involved in third-party payment regulation
• Figure 5: Shanghai CardInfo' s telephone payment terminal
• Figure 6: Merchant fees for CUP partners
• Figure 7: Comparison of merchant and user fees for other payment models in China
• Figure 8: China tier-1 city data, 2005
• Figure 9: Countries where CUP is accepted
• Figure 10: CUP-Visa market comparison
• Figure 11: CUP inter-bank and payment network partners
• Figure 12: CUP technology partners
• Figure 13: Total debit cards issued in China, 2005-1H2007 (M)
• Figure 14: Total CUP credit cards issued in China, 2005-1H2007 (M)
• Figure 15: CUP acceptance (POS and merchants) in China, 2004-1H2007 (' 000s)
• Figure 16: CUP ATM network in China, 2004-1H2007

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