UnionPay Presentation

Report
UnionPay International
Accra Ghana
July, 2014
UnionPay International
Index
– Business Overview
– Membership Process
– UnionPay Products
01
Business Overview
China UnionPay
Established in Shanghai on 26 March 2002
Issuance: 4 billion cards (No 1) in 33 countries
Acceptance: 142 countries
Transaction Volume (No 2)
UnionPay International (UPI)
Established in Shanghai on 30 November 2012
Focus on International business
A membership association
Principle, Scheme, Affiliate, Participant Members
TPSP certification
Member Council and future Regional Council
UPI Global Partners
UPI Africa
56
42
countries /
markets
markets
accepting
UnionPay
54
110
thousand
ATMs
thousand
POSs
Sino-Africa Corridor
$150bn
Chinese
investment to
African
economy in
2011*
US$838bn
Predicted
value of
China’s
outbound
market by
2020
* Source China National Statistic Bureau
500,000+
Chinese
visitors to
Africa in 2011,
12% higher
than 2010*
100 million
Outbound
Chinese
travelers by
2020
US$14 billion
Potential
spend by
Chinese
visitors in
2020
2,000+
Chinese
companies
active in Africa
Sino-Africa Trade
Country
South Africa
Total Trade YOY
Export To
Africa
YOY
Import From
Africa
YOY
2564.8
60%
1080.3
47%
1484.6
70%
Egypt
696
19%
604.2
18%
91.8
25%
Zambia
285
98%
30.2
98%
254.8
98%
Ghana
205.6
27%
193.3
26%
12.3
55%
Kenya
182.5
40%
178.6
40%
3.9
32%
Tanzania
165.3
49%
125.2
37%
40.1
105%
Mozambique
69.8
35%
49.6
46%
20.1
14%
Zimbabwe
56.2
89%
31.6
102%
24.6
75%
Botswana
42.3
84%
37
123%
5.4
-17%
Uganda
28.4
13%
25.8
11%
2.7
32%
Seychelles
1.5
-3%
1.5
-3%
0
-64%
Total
4297.4
2357.3
1940.3
UnionPay Card Issuance in Africa
First UnionPay card issued in 2013
Type: Pre-Paid, Debit, Credit
Special Purpose: Travel Mate .China
Class: Classic, Gold, Business
Currency: Local Currency, CNY, Dual Currency
02
Membership Process
UPI Membership
To promote its international growth, all institutions
which want to conduct UnionPay Cards Overseas
Business should become members of UPI
The relationship between members and UPI is not only
Business Partnership, but also community of interests
Members can participate in part of business
management and formulation of business rules and
standards
Members can also participate in incentive scheme
based on business contribution
UPI Membership Scheme
• UPI membership scheme
upholds “open cooperation
and common development”
introduces a sustainable
and win-win profit model
for its members. Members
can enjoy profit incentives
based on their business
contribution
Share benefits
based on
business
contribution
• UPI members can
participate in business
management and the
formulation of business
rules and standards
Participate in
decision making
and management
UPI Member Incentive Scheme
UPI will set
aside a certain
amount of
funds every
year as
incentives for
members
Incentives to
members are
calculated
based on
members’
business
contribution
to UPI
Member Council
formulates
detailed
incentive plans
and decide how
to allocate the
inventive based
on the Bylaws of
Membership and
company policies
General Eligibilities & Member Types
Application for membership in the Company may be made by any
Payment Institution that in accordance with the requirement of UPI
Bylaws of Membership
Principal Member
a) General
b) Acquiring Only
Affiliate Member
Scheme Member
Participant Member
UPI Membership Classification
Classification
Principal
Member
General
Description
Any payment institution that meets the
qualifications as stipulated in UPI Bylaws
Acquiring
Only
Business
Scope
As
Sponsor
• Issuing
• Acquiring
• Value-added
Yes
• Acquiring
• Value-added
Yes
Scheme Member
Local Switching Networks
• Acquiring
• Value-added
• Sub-licensee
Yes
Affiliate Member
To engage in business via or under the
sponsorship by a Principal Member or a
Scheme Member
In scope of the
sponsor’s
business
No
Participant Member
•Not being controlled or associated with any
Principal Member or Scheme Member
• Acquiring
•Value-added
No
• Not entitled to participate in the Member
Council or the rights and interests related to
incentives for members
UPI Membership Application
Forms to fill or sign
• UnionPay International
Membership License
Application Form
• License Agreement
• UnionPay International
Business Application
Questionnaire
• Anti-Money laundering
Questionnaire
Documents to provide
• Copy of Business License,
Certificate of Incorporation and
business registration certificate
• Copy of Approval Document(s)
from the regulator (if
applicable)
• Articles of Association
• Annual Report or audited
financial statements for the
recent three years
• Credit rating documents from
third party rating institutions or
regulators (Optional)
UPI Membership Application
Step 1
• Sign the NON-DISCLOSURE AGREEMENT
Step 2
• Download UPI Operating regulations through
http://member.unionpay.com. The applicant could contact UPI
marketing representatives to apply for a temporary user account
Step 3
• Prepare the documents for UPI membership application (Relevant
documents please refer to the attachment)
Step 4
• Fill in the membership application form and submit relevant
application documents to marketing representative
UPI Membership Approval
• Business
operation
conditions
• UPI credit risk
rating, risk reserve
fund and
guarantee
• Technical
supporting ability,
etc.
Preliminary Review
Approval
• Approved by UPI
Member Council
• Approved by UPI
Board of Directors
• Issuing Letter of
Authorization
Authorization
Provisional Letter of
Authorization (PLA)
Note:
If the applicant pass the preliminary review, they can apply for provisional letter of authorization to
engage in UP Card business as UPI Provisional Member
UPI Certification Process
takes 3 months
PLA is issued
Reserve IIN/BIN
Member
Contact Operation &
Implementation Team to
reserve IIN/BIN by Guild
Design Inc.
Add Your Title
Set up Network
Connectivity
Complete Certification
Testing
Submit Network
Connectivity Request Form
for approval.
Submitting Online Testing
Request Form
by Guild Design Inc.
Modify or enhance its
system and interface with
UPI by Guild Design
Inc.
UPI
Reserve IIN/ BIN
BIN Release
Schedule the
testing & provide
assistance by
Guild
Provide assistance
UPI Certification Process
PLA is issued
Apply for CDRS
Member
UPI
Submit CDRS
application forms
Apply for formal
IIN/BIN
Card Preparation
Add Your Title
Submit IIN /BIN
application form
Guild Design
Inc.
Process the
application forms
& train member on
CDRS
 Grant a written
approval
 If IIN/BIN have
been reserved,
UPI will validate
them
accordingly
Other
preparations
1. Card Design
Review
2. Sample Card
Testing(CFCA)
3. Card
Manufacturing
Submit Contact
Information Form,
System Information
Form & Settlement
Information Form
Provide
assistance
Provide necessary
assistance Guild
Inc.
Design Inc.
UPI Certification Process
System Certification Completed
Card Design Approved
Sample Card Testing Passed
Risk Reserve Fund Received (if any)
Letter of Authorization Issued
UPI Membership Fees
Membership Fees (once-off)
Membership Type
Rate
Principal Member, Scheme Member
USD 48,000
Affiliate Member, Participant Member
USD 36,000
Testing Fee & BIN License Fee
Fee Type
Description
Rate
Testing
Issuers shall pay for the certification online
testing and other tests exceeding 80 hours,
requested by Members
Online Testing
USD 5,000
BIN License
Issuers shall pay UPI for BINs applied for
issuing UnionPay cards
USD 100 /BIN
03
UnionPay Products
UnionPay Products
Status Segments
Diamond
TXN Mode
POS,ATM,
CNP TXN
Money
Express
(Remittances)
Dual
Currency
Platinum
Debit
Credit
QPass
Contactless
Mobile
Gold
(M-commerce)
Prepaid
Commercial
Classic
Global
24/7
Concierge
Integrated
Circuit
(Chip)
Virtual
(e-commerce)
UnionPay
World
Privilege
Service Packages
Concierge
Service
Expense
Management
Comprehensive
Protection
Insurance
Delivery Technology
Program Enhancements
UnionPay Cards
Card Front
Issuer Brand/Logo (Required)
Debit /Check Card wording subject
to market practice or local
regulatory requirement (Optional)
Chip (if applicable)
UnionPay Hologram - option on card
face or back in compliance with
UnionPay regulation and approval
(Required)
Embossed 16-digit UnionPay Card
Number on valid cards begins with
“62”, pre-printed first 4 digit BIN
(Required)
Embossed Expiration Date and
embossed Cardholder Name
(Required)
UnionPay Brand Logo - option of
bilingual or English as well as the
option of size adjustment in
compliance with UnionPay regulation
and approval (Required)
Card Back
The Magnetic Stripe
is encoded with the card’s identifying
Information (Required)
CVN2 includes 3 digits and is printed on
the upper right corner of the signature
panel with one blank after the last four
digits of the card number (Required)
8888 986
The Signature Panel must appear on
the back of the card. It may vary in
length. The words “Authorized
Signature” must appear above,
below or beside the signature panel
(Required)
UnionPay Cards
Pay Later
Credit products
Classic/Gold/
Platinum/
Diamond
draw funds from a
credit line,
Dual-Currency,
World Privileges,
Airport Lounge,
Golf Reservation,
etc.
Pay Now
Pay Before
Debit products,
draw funds from a
current banking
account, enjoy
cards benefits that
same level credit
card have
Prepaid products
draw funds from a
pre-funded card
account that can be
funded from a
variety of sources
Pay Management
Commercial products
Business, Purchasing,
Corporate card
draw funds from a
corporate credit line,
with
business related benefits,
allow enterprises have
comprehensive expense
management capability
UnionPay Cards
UnionPay Card Products
Debit Card / Credit Card / Prepaid Card
RMB card / Non-RMB card / Dual-currency Card
Individual Card / Corporate Card
Classic Card / Gold Card / Platinum Card / Diamond Card
Magnetic Stripe card / Chip Card (e.g. UICC Debit/Credit Card, UICC ECash Card)
Card Number Specifications
BIN (6 digits) + Issuer-defined digits (9 digits) + check digit (1 digit)
BIN Range: Over 7000 ISO Bins beginning with 62
Length: 19 digits for debit card; 19 digits recommended for prepaid
card; 16 digits for credit card in the format of xxxx-xxxx-xxxx-xxxx
UnionPay Cards
Card Expiry Date
Less than 5 yrs. for Credit Card, unless otherwise stipulated by local regulations
Less than 5 yrs. for Registered Prepaid Card; less than 2 yrs. for Anonymous Prepaid
Card
For Debit card, issuer may choose to set expiry date or not
For UICC Debit/Credit Card, expiration date of primary debit/credit application shall
be the same as that encoded in the magnetic stripe
For UICC E-Cash Card, expiry date of Certificate Authority (CA) Public Key shall be
longer than the card expiry date
Signature and PIN
PIN length of 6 digits for PIN-based card
Cardholder signature on signature panel for Magnetic stripe and hybrid cards
For UICC card, verification method including online and offline PIN shall be set up
For chip-only UICC card (i.e. without a magnetic stripe), cardholder signature is
optional
UnionPay Cards
Magnetic Track Data
Track 2 is primarily used for track data interchange in UnionPay magneticstripe card
For debit card, track 1 and 3 are optional to use by the issuer
For credit card, both track 1 and track 2 shall be used whereas track 3 is
optional; issuer shall support track data interchange based on track 1 as well
Magnetic Track Data in Chip Card
Magnetic stripe is required for chip card
Information in track 2 of magnetic stripe shall be contained in the relevant
data elements in the primary debit/credit UICC application.
For better risk control, the CVN of the magnetic stripe mapped in chip itself
can be different from the CVN in the magnetic stripe
UnionPay Online Payment (UPOP)
• The UnionPay Online Payment (UPOP) program was launched at the end of 2011.
• UPOP is UnionPay’s global payment program for E-Commerce transactions. It enables
UnionPay cards to be accepted over the Internet with real time transaction
authorization.
• The UPOP program can already be utilized by over 3 billion UnionPay cardholders
and has been widely accepted as an essential element in the UnionPay card
programs of Issuers.
UPOP provides:
Security
Convenience
Global Acceptance
51.52 M
Number of UPOP
global users
247 Bn
199%
Transaction volume
between Jan and
Sep in 2013
Annual transaction
volume growth rate
UPOP
•
As well as traditional Internet payments, UPOP
also supports mobile payments through
intelligent terminals such as smart phones and
PADs.
• Supports all major browsers
safari/android/UC/QQ/360/opera
• Support many major APPs
• Supports all mainstream mobile OS
Contactless - QuickPass
Debit/Credit Account Payment
E-Cash Account Payment
•
•
•
•
•
•
Tap & Go
No PIN, no Signature
Transaction with 1000
limitation(RMB, HKD, MOP)
Load funds in advance
Balance on chip
Dual currency E-Cash
• Cafes
• Take Away / Fast food outlets
• Coffee shops
• Video stores
• Parking
• Drive-through
• Cinemas
• Clubs, bars, pubs
• Music stores
• Stationary stores
• Book stores
• Canteens
•
•
•
Tap, Go & PIN (optional)
Online PIN/Signature
(Optional)
Online Transaction
• Newsagents
• Bakeries
• Petrol stations
• Pharmacies
• Stadiums, venues
• Convenience stores
QuickPass
Cardholder
Merchant
•
•
•
•
•
•
Security
Speed
Convenience
Value Added Services
Transaction History
•
•
Cashless Service
◦ Hygiene
◦ Fast
◦ Reduce possibility for
mishandling
Consumer Loyalty
Enhanced Security
Mobile Payment
Remote Payment (Card-Not-Present)
Mobile Client
Payment Plug-in
Payment
Service
Through
Mobile Client
Added on
Mobile Browser
or Application
SMS/USSD
SIM Card Based
Cooperate with Mobile
Network Operator
Proximity Payment (Card-Present)
NFC SIM/SD
NFC Phone
Financial SE
Integrated in
Mobile Phone
iPhone Accessory
Financial SE
Integrated in
SIM/SD Card
Financial SE
integrated in
iPhone
Accessory
Mobile Payment Process Flow
2
1
3
4
USD
USD
Place the
Order
Input Card
Information
Transaction
Processing
Payment
Completion
Mobile Payment
Mobile User
Merchant
 Place the
Order
 Processing
the order
 Collect
payment
Information
 Forward
payment
information
Acquirer
 Processing
Payment
(Optional)
UnionPay Gateway
 Providing
Processing and
CDRS system

Clearing and
Settlement
 Registration
for Merchant
 Plug-in Payment
interface
 Settlement
for Merchant
 Unified Online
Payment Brand
Issuer
 Conduct
transactions
to pay for
goods or
service.
Cross Border Payment - MoneyExpress


Remittance
Verification
Approved
Online
Remittance
Approved
Manual
Remittancce
Transaction
Realtime Succeeded
Rejected
Transaction
Failed
Failure
Transaction Nonrealtime Succeeded
Three Transaction Steps


Remittance Verification
Transaction (RVT)
Online Remittance
Transaction (OMT)
Manual Remittance
Transaction (MRT)
For more information, contact:
Jack Chen
UnionPay International Africa
7B-2, Sinosteel Plaza
159 Rivonia Road, Sandton, Johannesburg
Tel: +27102861099
e-Mail: [email protected] [email protected]

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