How COVID-19 is shaping the way we shop
We are excited to announce that we now offer a direct connection to UnionPay in store, in the US.
Now, businesses operating both in Europe and the US can process the payments of Chinese shoppers, both in store and online, without having to route the transaction through an international partner network.
We are proud to say that we are the first global payments service provider to offer this.
This means wider acceptance, lower charges for both retailers and shoppers, and increased efficiency.
UnionPay is the largest scheme in the world. And, with more than 5.4 billion cards, it accounts for over half the global credit and debit cards in circulation.
It is widely used by Chinese shoppers internationally as well as domestically, and it facilitates both domestic and cross-border transactions for any card it issues.
Now, thanks to Adyen’s direct connection, a transaction can be routed straight to UnionPay, with no need to rely on other networks.
This eliminates additional charges, and makes the whole process smoother, with less potential points of failure. Co-branded cards are also routed straight to UnionPay to increase efficiency, and keep charges to a minimum.
This direct integration also has the added benefit that it significantly increases the spending power of Chinese shoppers, which were previously restricted by spending limits on co-branded cards, or the amount they can withdraw from ATMs with UnionPay cards.
Furthermore, since the People’s Bank of China has ordered Chinese banks to stop issuing co-branded cards, it will become increasingly important for retailers around the world to support UnionPay directly.
So you not only save money for both you and your shoppers, but you extend your reach to a broader mass of Chinese shoppers. While they, in turn, benefit from a payment experience no different from the one they would have at home.
The rise of Chinese spending power has been well documented.
As an example: Singles Day smashed all previous records this year, clearing $15 billion by 8pm. And of course this passion for purchase is by no means limited to domestic shopping.
Far from it, Chinese shoppers are spending billions of dollars abroad – in fact China bought half the world’s luxury goods in 2015.
Another important factor to consider is the huge volume of Chinese students living in the US, which accounts for 31% of all foreign students in the country.
There are huge opportunities therefore for retailers in the US to engage with these growing demographics of shoppers.
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