China UnionPay Strengthens Foothold in Latin American Market

A deal has been struck between UnionPay International, China UnionPay‘s global transactions arm, and De Surinaamsche Bank, the largest bank in Suriname.

The deal would have UnionPay’s debit cards issued in Suriname and a UnionPay credit card will be launched by the second quarter of 2015.

According to Alfred Nader, head of Latin America and the Caribbean at Western Union Business Solutions, this is a mutually beneficial deal, as it will give the citizens of Suriname the choice of economic transactions in ways other than cash.

If all goes well, the company will be able to expand their undertakings in other Latin America countries close to Suriname, like Guyana, French Guiana and cities in Northern Brazil.

UnionPay’s relationship with Latin America is already flourishing, as the organisation is allowed to issue cards in countries such as Argentina, Brazil, Colombia, Cuba, Mexico, Peru, Suriname and Venezuela.

This is also a sample of the increasing trade relationship between China and Latin America. In relation to Suriname, China is one of the three largest markets for goods imported to the country along with the USA and the Netherlands, according to data collected by the Massachusetts Institute of Technology’s Observatory of Economic Complexity.

In respect to Latin America however, the figures are much more impressive. Over the past decade, trade flows have reached $261.2 billion in 2012 — up from $100 billion in 2009 and just $10 billion in 2000.

UnionPay was the only national bank-card organization approved for use in clearing transactions in China until Oct 29 when China’s State Council announced that it intends to end China UnionPay Co’s control over domestic bank-card transactions.