UnionPay 2012
Tourism Accommodation (VIC) Presentation
Name Simms
David
Surname
& Luke Fossett
Business
Global
Development
Unit
Team
Date
13
FEB
Month
2013Year
Agenda
1. UnionPay in brief
2. Chinese tourists purchase and payment
preferences
3. Creating a Chinese tourist friendly
destination
Global Acquiring Team
UnionPay 2012
2
UnionPay Background
• Incorporated March 2002 , Shanghai
• The unique bank card association in
China represents 230+ issuing banks
• The only payment scheme able to
settle directly in RMB
• China has skipped personal cheques
and moved directly to plastic cards
Global Acquiring Team
UnionPay 2012
3
UnionPay Global Presence
130
Countries /
Markets
Global Acquiring Team
UnionPay 2012
320
Issuers
Worldwide
3.1B
Cards issued
worldwide
20M
1.25M
Cards Issued
outside
China
4
ATMs
Worldwide
4
8M
POS
terminals
UnionPay in Australia
• 90,000 merchant outlets, 150,000 POS -15%
• 97% of cabs via CabCharge
• 10,638 ATMs – 35% of the market
Global Acquiring Team
UnionPay 2012
5
Overseas Chinese Travellers
China is the world’s fastest
growing source of tourism
with:
70.25 Million trips in 2011
and US$7.2 Billion spent
(2011 Xmas-2012CNY).
80%+ of Chinese travelers
rank shopping a must-doactivity when going
overseas
[Source: China Tourism]
Global Acquiring Team
UnionPay 2012
Why do Chinese shop
What are they looking
overseas?
for?
• Fine Jewellery and
• Culture & tradition
Watches
• Lower tax and cost
• Luxury accessories
• Wider choice
• Exclusive offers from
• Genuine & High
top brands
Quality
• Skin care products
• Nutrition products
6
How chinese prepare for their overseas
payments
• Exchange RMB into AUD or USD cash - 5,000USD limit per trip / 50K USD per
annum - Harder to buy AUD cash due to limited liquidity in China, buying USD will
incur double conversion costs
• Buying Travellers Cheques - Only very few banks provide travellers cheques
• Applying for foreign currency international credit cards - Foreign currency cards
can’t be uses at home. Lower credit lines limit overseas spending
• Searching for merchants and attractions which accept UnionPay RMB card •Many use the UnionPay websites and information to gather information before
travelling
“Be thrifty at home and spend liberally while travelling…”
-- Old Chinese saying
Global Acquiring Team
UnionPay 2012
7
Chinese Tourists Prefer a familiar payment
method
• Every single Chinese already has at least one UnionPay card
• UnionPay provides a direct conversion AUD  RMB vs. other schemes AUD  USD
 RMB
• UnionPay does not levy a currency conversion fee vs. 1.5-3% for other schemes
• UnionPay offers a ‘PIN + Sign’ option for greater security vs. other schemes
signature based transactions
• UnionPay debit cards link to current and saving accounts: no spending limit at POS
• UnionPay payments excluded from the US$50K Foreign Currency annual quota
Chinese tourists preferred way to pay
Global Acquiring Team
UnionPay 2012
8
Maximise sales with UnionPay Signage
Non-logo Displaied
Logo Displaied
0
5
10
15
20
25
30
Testing in Australia:
295 vs. 291 merchants with/without logo display : 28X sales difference increase
The reasons
• Cardholder Education
• Eastern society character & language barrier
Indicators
UnionPay logo – The best symbol for Chinese tourist friendly shop/attraction
Global Acquiring Team
UnionPay 2012
9
UnionPay Payments In Australia
•
•
•
•
Average transaction size – AUD$800 (2011)
Biggest single purchase – AUD$1.2m
Biggest single meal - AUD$175,000
Think about US$5,000 cash per trip & USD50,000 quota per annual
Source: UnionPay Shanghai Data Centre
2011 Australia Average UnionPay Transaction $ Value - by Merchant Category
Global Acquiring Team
UnionPay 2012
10
Summary of Tourism Australia’s China 2020
Strategic Plan
• Understanding Chinese culture
• Direct China marketing efforts
• More flights to/from China
• Mandarin speaking guides
• Chinese signage
Global Acquiring Team
UnionPay 2012
11
Co-operation with Tourism Australia & State
Tourism Boards
• Signed Memorendum of Understanding
with Tourism Australia, Tourism Victoria &
Destinations New South Wales
• Joint promotion activity planned
• Introducing merchants to UnionPay
Global Acquiring Team
UnionPay 2012
12
Introducing UnionPay New Online Payment
Platform To Australia - uPOP
Internet Payment Transaction Amount
•
2100
1800
500 million internet users
• 1/3 of them are online shoppers
1500
• In 2011, the Chinese internet
1200
900
shopping market value reached
600
US$300 billion
300
0
2004
2005
2006
2007
2008
2009
2010
2011
With UPOP, online stores can
directly reach 150 million Chinese
online shoppers.
Global Acquiring Team
UnionPay 2012
13
Case Study – Philip Island
• Using NAB EFTPOS Terminals:
UnionPay sales to Chinese visitors in first
half 2012 increased 180% YOY
• Jan 2012 V.S. Jan 2011 – 1,068% increase
• Chinese New Year in Jan 2012
• UnionPay joint promotion – 30% off
all purchases in the Nature Park
Global Acquiring Team
UnionPay 2012
14
Contact Us
David Simms
[email protected]
Global Development Manager
Transaction Services Australia
Luke Fossett
+61 439 033 524
[email protected]
Global Development Manager
Transaction Services Australia
Jarrod Priest
+61 419 873 716
[email protected]
Global Development Analyst
Transaction Services Australia
Global Acquiring Team
UnionPay 2012
+61 457 548 549
15