A Co-Branded Card Issued for the Cooperation Among UnionPay International
UnionPay International is in the news due to its announcement pertaining to the issuance of UnionPay co-branded debit cards for the cooperation with Kazkommertsbank, now Qazkom and Cemarket. This is targeted at foreign trade enterprises in Kazakhstan purchasing made-in-China electromechanical products online, with the intention of providing convenient and secure payment services, as well as improving the border trade between China and Kazakhstan.
As a result of the implementation of the “One Belt and One Road” strategy, the trade volumes between the two nations has experienced steady growth, among which electromechanical products represent over 40 percent of gross import of Kazakhstan. During this process, the enterprises in Kazakhstan want to improve the efficiency of exchange settlement for trade of large and medium sized cargoes and change USD from settlement intermediary, serving to lower the overall transaction cost-something to the benefit of both nations.
The new UnionPay co-branded cards have a few advantages worth mentioning. The first being that it can be easily used in the UnionPay acceptance network distributed in 160 countries and regions and enjoy premium rewards offered by Qazkom and Cemarket. Next, purchasers in Kazakhstan can complete online payments in Tenge, and domestic suppliers can make collections in RMB directly. Last, the new UnionPay co-branded cards supports the online single payment of large amounts.
There are currently over 60 countires and regions along the “One Belt and One Road”, of which 50 of them can accept UnionPay cards currently. In Kazakhstan alone, 80 percent of merchants and 80 percent of ATMs can accept UnionPay cards.