UnionPay optimizes payment services in China with Project Excellence 2024

On Friday, the launch ceremony for Explore China Your Way with UnionPay: UnionPay Payment Service Optimization — Project Excellence 2024 was held in Shanghai. Zhang Qingsong, member of the People's Bank of China Committee of the Communist Party of China and vice-governor of the PBOC, and Xie Dong, vice-mayor of Shanghai, attended the ceremony and delivered remarks. The event was also attended by Wang Ping, deputy secretary-general of the Shanghai government, Jin Penghui and Liu Xingya, deputy directors of the Shanghai Head Office of the PBOC, and Wang Sheng, deputy director-general of the PBOC Payment and Settlement Department, as well as the leadership from UnionPay, including Dong Junfeng, as well as Shao Fujun, chairman and Cai Jianbo, president. Other members of the audience included representatives from the Shanghai municipal authorities, major Chinese commercial banks, acquirers, merchants, overseas regulators, international partners and other global card schemes.

The State Council recently issued guidelines to further optimize payment services in China. The document aims to address the bottlenecks in payment services and improve a multilayered and diversified payment service system in line with the payment preferences of different user groups.

The release of the guidelines demonstrates the significance attached by the central government to the development of the payment industry and serves as a road map for the future growth of the industry. It is essential for building a payment service system where different payment options develop in parallel and complement each other, and for creating an inclusive and convenient payment environment to facilitate the high-quality development of the payment industry.

In order to fully implement the requirements provided by the guidelines, UnionPay has taken the initiative to launch Project Excellence 2024 to fully participate in the campaign to improve payment convenience for senior residents and international visitors to China. With the goal of delivering full solutions for all use cases across China, Project Excellence 2024 will be jointly implemented and cofunded by industry participants. Specifically, UnionPay will take the lead and direct 3 billion yuan ($416 million) toward a focus on acceptance terminal upgrades, signage placement and publicity, etc. in key cities and use cases.

At the same time, led by government authorities in specific sectors, UnionPay will encourage other industry players to pool their resources. The efforts will cover 41 key cities nationwide and 26 high-frequency use cases in eight major categories — food and beverage, accommodation, transportation, sightseeing, shopping, entertainment, healthcare and education. By providing comprehensive payment solutions that include cards, QR codes, OEM pay products and cash withdrawal, the undertaking will drive the parallel and complementary development of mobile, card and cash payments. Project Excellence 2024 will start in Shanghai with marketing campaigns throughout the year under the theme of Explore China Your Way with UnionPay, aiming to provide more discounts and options as well as a better experience.

During the event, Zhang said that the rapid development and accelerated penetration of mobile payment in China in recent years have been pivotal to reducing transaction costs and promoting financial inclusion; however, new challenges have also emerged, such as the digital divide for the elderly population and barriers for international visitors to China. To implement the decision and arrangements by the central government, the PBOC has promptly set up a dedicated working group to put in place a series of measures in line with the State Council guidelines.

Zhang acknowledged Union-Pay's quick action to pool resources with other parties and encouraged all entities to strengthen synergy and provide the resources necessary to achieve substantial results in making payments more convenient. Shanghai, as one of the main destinations for inbound travelers, has gained valuable experience in supporting the China International Import Expo. He said he hopes that the city can continue to set a good example of effectively implementing more measures aimed at increasing payment convenience. The PBOC will work with relevant parties, further develop payment use cases and coordinate efforts to address any shortcomings and weaknesses. It will make payment services more convenient and engaging, and go some way to contributing to China's high-standard opening-up and optimized business environment.

Xie said that payment is the foundation of economy and finance and plays a crucial role in facilitating people's lives, optimizing the business environment and building a thriving consumer market. The PBOC has guided all parties in the payment industry to establish a multilayered and broadly-covering acceptance network, which enables China to become a global leader in payment services. Shanghai is the largest clearing center in the world for card-based transactions, where UnionPay has attracted numerous businesses upstream and downstream of the industry chain to form a cluster. As the city receives a large number of international visitors each year and is also one of the first in China to enter an era of aging society, choosing Shanghai as the first stop for Project Excellence 2024 holds special significance. Xie said she believes that Project Excellence can enable senior residents and international travelers among others to feel accepted and welcomed and make payment services in Shanghai more accommodating. The Shanghai municipal government will fully support the project and it stands ready to work with all parties including the PBOC to implement the requirements listed in the State Council guidelines, aiming to develop the Shanghai Solution that bridges the digital divide and improves the multilayered as well as diversified payment service system. Together, all parties can contribute to the optimization of the business environment and high-quality social and economic development.

Dong said that payment service optimization is a national policy and a shared responsibility of all industry participants. UnionPay has been implementing the strategic decisions by the central government and the work arrangements of the PBOC by fulfilling its pivotal role as a card scheme. He said he hopes that through Project Excellence 2024, UnionPay can inspire other industry stakeholders to contribute their resources, promote the parallel and complementary development of card, mobile and cash payments and respect and support customer's rights to choose payment tools. Project Excellence 2024 is a major initiative that connects different links of the payment industry as well as a systematic one that calls for consensus and coordination across the payment industry both domestically and internationally. Under the leadership of the PBOC and local governments, UnionPay will team up with banks, China Union-Pay Merchant Services and acquirers in and outside the Chinese mainland and strive for extensive availability of full solutions in all use cases across China. Furthermore, UnionPay will enhance collaboration with banks and payment institutions, expedite payment code interoperability, strengthen partnerships with Chinese clearing institutions and further engage in consultations with other international card schemes to jointly establish a convenient, open and inclusive payment ecosystem. Ultimately, UnionPay products will be easy to use in every use case, offering a superior experience, more options and higher value for the elderly and international visitors to China.

During the ceremony, UnionPay released 29 business achievements, covering international card issuance, overseas e-wallets and acceptance in China, among which were agreements signed with partners from the Philippines, Australia and Pakistan to issue 3 million UnionPay cards. Ten major wallets, including AEON in Hong Kong, OCBC in Singapore and the LPB e-wallet in Vietnam, now support UnionPay QR payments, which are estimated to cover 60 million potential customers. More than 10 well-known online and physical merchants, including Meituan, Trip.com, Pinduoduo, JD.com and Shouqianba, accept international UnionPay payment products. Hong Kong and Macao vehicles traveling to the Chinese mainland can enjoy seamless payments at multiple parking lots and tollgates in Guangdong province.

At the event, UnionPay also signed collaboration agreements with Ctrip Financial Services and China Tourism Group to provide more user-friendly cross-border payment services for international visitors to China. Themed marketing campaigns targeting these travelers have also been launched, available at visa centers, airlines, online travel agencies and more than 100,000 merchants. Nearly 20 issuers from countries such as South Korea, Thailand and Kazakhstan will offer up to 12 percent cashback to their cardholders who use UnionPay cards in China. Additionally, UnionPay's Travel Mate Asia, a card featuring popular destinations in the Chinese mainland, will be upgraded.

As a key financial infrastructure in China and one of the major card schemes in the world, UnionPay has been strengthening collaboration with other industry stakeholders. With its comprehensive solutions that cover all sorts of payments, UnionPay continues to make payments easier for groups such as senior residents and international visitors to China. While improving services such as card acceptance and ATM cash withdrawal, UnionPay has rolled out the senior-friendly version of the UnionPay App, allowing the elderly to enjoy the benefits brought by the era of digital payment. In addition, UnionPay has issued more than 230 million cards outside the Chinese mainland, launched nearly 200 UnionPay-powered e-wallets and extended the acceptance network to 183 countries and regions, transforming UnionPay into a global payment solution that services cardholders across the world.