With China UnionPay deal, Amex to handle more... - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » With China UnionPay deal, Amex to handle more transactions

With China UnionPay deal, Amex to handle more transactions

With China UnionPay deal, Amex to handle more transactions

American Express (AmEx) the major credit card giant, has said that its China UnionPay deal would be instrumental in processing more transactions in the global market. James Tobin, spokesman for AmEx was quoted as saying that the two companies had signed the Memorandum of Understanding (MOU), where they would expand their networks globally and find new ways to enter markets outside China.


Payment networks from the U.S. that have been shut out of the card-processing market in China, are on the lookout for other means in order to build a partnership with UnionPay – based in Shanghai. UnionPay is a (government-sanctioned) monopoly, and MasterCard`s present deal with UnionPay will help in boosting the revenue for both firms. Presently, the only payments networks that process UnionPay transactions in the U.S., is Discover Financial Services.


It is estimated that China would be a major player in the credit card network by the year 2020. It would take over the U.S., whereby it is estimated that there would be approximately 900 million cards in circulation. As per estimates by MasterCard, there will be an increase of 11% each year in the total number of cards, and there would be a 14% increase in the transaction value annually, up to the year 2025.


A complaint has been filed with the WTO (World Trade Organization) by the Obama administration against China for restricting the entry of foreign companies such as Visa and MasterCard in the payment-processing sector. There was a clash between Visa and UnionPay in the month of June, when the company asked merchants as well as banks to process the international transactions through its systems when it comes to Chinese cardholders who use cards that carry the brands of both the companies. UnionPay insisted that the use of dual-currency cards abroad could not be blocked by Visa.


This dispute is largely due to Visa`s dissatisfaction with the way it is treated in the credit card market in China. Visa has very limited access in China`s market. This treatment by China would certainly affect the cardholders in China, especially ones who travel overseas. This may result in higher fees. However, it is a known fact that neither of these companies have the right to unilaterally limit any cardholders` choice when it comes to payment options.


There was no comment however from Yanmei Wang, the UnionPay spokesperson.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

MasterCard and Fred Segal Open Shop on the Strip

Posted: April 20, 2018

MasterCard and Fred Segal have opened Rock ‘n Roll Holy Land on Sunset Strip, an immersive exhibit giving people an insider’s view of the history of the Sunset Strip. The shop also puts a unique digital spin on window shopping using ... Continue reading
New Amex Centurion Lounge Opening in Denver

Posted: April 19, 2018

Are you a regular at Denver International Airport (DEN)? If so, you may want to check out the new Centurion Lounge when it opens next year. It’s stated to be the eleventh lounge in the Centurion line up. Offering airfield views and taking ... Continue reading
Crate and Barrel and Synchrony Bank to Offer New Credit Cards

Posted: April 18, 2018

Do you shop for furniture and household wares at Crate and Barrel? If so, you might be interested to know that the home furnishings retailer has inked a deal with Synchrony to offer customers not only new credit cards and financing ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!