UnionPay has made new progress in driving the rollout of products and services in overseas markets through exporting technical standards after reaching chip card standard licensing cooperation with Asian Payment Network (APN).
UnionPay International has signed a card issuance agreement with the Philippine switch network, BancNet. The two will jointly promote large-scale issuance of UnionPay EMV chip cards by BancNet’s members.
This is the first card issuance project in overseas markets after the chip card standard licensing cooperation.
APN comprises of 13 switch networks from 11 Asia-Pacific countries, and UnionPay is the sole supplier of its cross-border chip card standard.
In October 2016, UnionPay had signed chip card standard licensing agreement with 7 APN member institutions, including BancNet.
According to the agreement, mainstream switch networks in Thailand, Singapore, South Korea, Malaysia, Indonesia and the Philippines would adopt the UnionPay chip card standard as the technical standard for acceptance and issuance. The UnionPay chip card standard complies with the EMV standard, with UnionPay being one of the founding members of the EMV standard.
As the only ATM switch network in the Philippines, BancNet has more than 100 members in the Philippines. Previously, UnionPay International has enabled all the local ATMs to accept UnionPay cards through cooperating with BancNet.
Since the signing of chip card standard licensing agreement, BancNet has completed the EMV chip card migration of its acceptance network and is preparing for card issuance. Next, BancNet will promote large-scale issuance of UnionPay EMV chip debit cards by its members. And all these cards can be used in the UnionPay network across 160 countries and regions.
This card issuance cooperation is of great significance: Firstly, as the only ATM switch network in the Philippines, BancNet is able to promote large-scale issuance of UnionPay cards by local banks in the Philippines, particularly with small and medium banks.
Secondly, UnionPay EMV chip cards will provide a new secure payment option for the Philippines market, helping to upgrade the local payment industry at the same time. Third, this cooperation will serve as a good model for other APN member institutions, helping them to speed up the implementation of their cooperation with UnionPay. Thus, more residents in these markets will know about and use UnionPay cards, and UnionPay will better support the payment needs for cross border transactions in the region.
In Southeast Asia, UnionPay takes part in the construction of payment infrastructure besides chip card standard licensing. The Laos national bankcard payment system and the Thai Payment Network (TPN) based on the UnionPay standard have gone live. After the completion of TPN, UnionPay International and Bangkok Bank have issued over 1.2 million UnionPay-TPN cards in Thailand.
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