Credit cards: National Australia Bank and China UnionPay form new bond
13th September 2006
National Australia Bank and China UnionPay have entered into new a card alliance.National Australia Bank and China's dominant bank card scheme, China UnionPay, have signed a deal allowing CUP customers to use their cards in Australia. The cards can now be used at NAB's 1,300 ATMs and the POS network will be adjusted to allow usage by the end of 2006. This is further evidence of CUP's globalization strategy and the potential rich pickings for partners willing to get onboard.
|
|
COMPANIES MENTIONED
RELATED ARTICLES
- UK credit market not improving
24 Oct 2007 - Barclaycard: more customers being refused credit
26 Sep 2007 - Finnish mortgage market: expected to experience a slowdown
19 Dec 2007 - Wells Fargo expands commercial finance business in Canada
14 Feb 2008 - Retail banking: Abbey grows UK market share in the face of slowing mortgage market
6 May 2008
Securing this new deal with a 'big four' bank ensures cardholders of China's leading payment card scheme will have comprehensive access to services across Australia. This new partnership will benefit existing CUP cardholders that reside in or visit Australia and NAB's CEO, Ahmed Fahour, stated that the main beneficiaries will be the 81,000 Chinese students in Australia (not to mention NAB itself).
Mr Fahour also suggested that Chinese visitors to Australia - the number of which is expected to increase at a rate of 20% per year, to reach one million per year in five years - will benefit. Prior to this tie-up, both students and visitors needed to use cards branded with an Australian-accepted card scheme such as Visa or MasterCard. Visa, MasterCard and Australian issuers will cease to profit from issuing cards to these consumers as they can now use their CUP card.
This partnership reflects CUP's strategy to be accepted throughout the world and follows a recent deal with a Swiss company Telekurs Multipay, which is the largest merchant network for credit, debit and value cards in Switzerland. The Swiss deal has resulted in CUP holders being able to withdraw cash and make electronic payments in 21 nations.
This rapid expansion of CUP's acceptance across the globe threatens the major schemes, Visa and MasterCard. In addition, local issuers will miss out on profiting from the world's largest population as they travel abroad for holidays or education brandishing their own payment cards.
With this in mind, and with the fact that CUP's globalization strategy seems to involve a partnership with just one acquirer in each country, potential partners would be wise to get in early. This way, those who dare will find themselves reaping the benefits of being the only local player profiting from merchant and ATM fees on transactions made by a customer base originating from the planet's most populous nation.
'End Intelliext
Mr Fahour also suggested that Chinese visitors to Australia - the number of which is expected to increase at a rate of 20% per year, to reach one million per year in five years - will benefit. Prior to this tie-up, both students and visitors needed to use cards branded with an Australian-accepted card scheme such as Visa or MasterCard. Visa, MasterCard and Australian issuers will cease to profit from issuing cards to these consumers as they can now use their CUP card.
This partnership reflects CUP's strategy to be accepted throughout the world and follows a recent deal with a Swiss company Telekurs Multipay, which is the largest merchant network for credit, debit and value cards in Switzerland. The Swiss deal has resulted in CUP holders being able to withdraw cash and make electronic payments in 21 nations.
This rapid expansion of CUP's acceptance across the globe threatens the major schemes, Visa and MasterCard. In addition, local issuers will miss out on profiting from the world's largest population as they travel abroad for holidays or education brandishing their own payment cards.
With this in mind, and with the fact that CUP's globalization strategy seems to involve a partnership with just one acquirer in each country, potential partners would be wise to get in early. This way, those who dare will find themselves reaping the benefits of being the only local player profiting from merchant and ATM fees on transactions made by a customer base originating from the planet's most populous nation.
'End Intelliext
YOUR OPINION...
-
Comment on this Article
NEWSLETTER SUBSCRIPTIONS
Sign up to our weekly newsletters for the latest industry news & comment.
|
|
back to top