AmEx plans to make deal with UnionPay count - 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 » AmEx plans to make deal with UnionPay count

AmEx plans to make deal with UnionPay count

AmEx plans to make deal with UnionPay count
The content is accurate at the time of publication and is subject to change.

The biggest issuer of credit cards in terms of purchases, American Express Co., is of the opinion that a deal with UnionPay Data Co. from China, will help processing more transactions using its global payment network. According to James Tobin, who is the spokesman for the New York based company; UnionPay is looking for people who would acquire merchants for credit cards outside China. A memorandum has been signed by both the companies to expand the current relationship and find new avenues to collaborate in worldwide markets.


UnionPay is a monopoly sanctioned by the government and is based in Shanghai. The payment networks from the US, which have been shut out of China, are trying to find ways to build relationships with the Chinese card payment processor. There are reports that even MasterCard Inc. has signed a deal with UnionPay, which could enhance its revenue making ability. Currently Discover Financial Services, based in Riverwoods, Illinois is the only card payment processor for card transactions of UnionPay in the US.


By 2020, China is expected to race ahead of the US in terms of the number of credit cards, with 900 million cards in use. The total number of credit cards is expected to climb by 11% each year, even as the transaction value climbs 14% every year until 2025, according to reports from MasterCard. The Obama administration had complained to the WTO against China, which has barred foreign companies including Visa and MasterCard from processing payments in its market. Visa, which is the biggest payment network, had a clash with UnionPay a few months back, when it asked merchants and banks to use its system for processing transactions by Chinese cardholders, with cards of both brands. UnionPay complained that Visa does not have the right to block use of dual currency credit cards internationally.


In fact, over the last few years, UnionPay from China and American Express have collaborated in China, where credit cards of American Express are run on the UnionPay network. Now with the New MoU, the companies are looking forward on developing new areas to cooperate in markets outside China. The memorandum seeks cooperation between the two companies in their efforts to expand and explore opportunities outside China. UnionPay was established in 2002 and plays a pivotal role in the bankcard industry of the country. The number of credit cards issued from UnionPay has crossed 2.3 billion dollars.

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:

Capital One Partnering Up with Airlines

Posted: November 16, 2018

Starting in December Capital One is partnering with a dozen airlines so their cardholders can transfer their miles and book flights. The new transfer benefit will be available to people with the Capital One Venture One, Spark Miles and ... Continue reading
Getting Quadruple Points with the New Business Gold Card by American Express

Posted: November 12, 2018

American Express is rolling out a new credit card for small businesses, offering quadruple reward points on the two categories in which they spend the most during the month. There are six categories they can earn these enhanced rewards in, ... Continue reading
Now Cardholders can use Ultimate Rewards for Apple Products

Posted: November 9, 2018

Chase credit card holders can now use their rewards to buy Apple products via the new Apple Ultimate Rewards Store. When shopping in the new store people with a Chase Sapphire, Freedom and Ink credit card can use their reward points to pay ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, 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!