China Opportunities with UnionPay

I. What is UnionPay

II. Why UnionPay matters

1) Accept UnionPay card onsite to increase revenue from Chinese traffic

2) Accept UnionPay card online to reach millions new Chinese customers

3) Get UnionPay card to make Chinese trip a hassle-free journey

III.How to get UnionPay

Agenda

• 1st card scheme by cards in circulation worldwide

• 5 billion UnionPay Cards in circulation

• 1st debit card brand by spend• 2nd largest card scheme by

transaction volume worldwide• 42 trillion RMB (US$6.61 T)

transaction volume in 2014

• UnionPay is Chinese version VISA/Master Card/AMEX + EFTPOS, founded in 2002 and its HQ located in Shanghai.

• The only card network currently issues, clears, settles CNY cards both in China domestic market and global market.

What is UnionPay?

UnionPay Global Presence

UnionPay partners in Australia

UnionPay services in Australia

80% ATM

50% Merchants Now; 70% in 2016

Card issued in Australia

Why UnionPay matters

• 1st Choice of Overseas Payment method for Chinese

(TripAdviser)

• UnionPay provides direct currency conversion instead of twice

conversions (industry norm is AUDUSDRMB)

• Get rid of FX restriction – US$5K per trip & US$50k/annual person

• Waive scheme currency conversion fee vs. 1.5-3% for other card

brands

• UnionPay debit cards link to saving accounts: literally no spending

limit at POS

Be thrifty at home and spend liberally while travelling.

Average transaction size

AUD 640 (2014)

Other international card is

110-120AUD

Why UnionPay matters?

• Hugh potential with Chinese tourists, students, new migrants

• with McKinsey research -- 68% of China’s urban consumers are “Middle

Class” and this will grow to 75% by 2022

• Credit Suisse - the number of China affluent family (household wealth over

US$1 MM) will double fold within the next 5 years

• There are 107 million Chinese travel overseas in 2014 and the growth rate

forecasting for 2015 is strong

• Chinese students and new migrants leverage on their UnionPay card to pay in

overseas as well

• 450K Chinese spent RMB6 BB (AUD1.2 BB) in Japan within 10 days during

CNY 2015

UnionPay signage is widely used in Australia but need more

• UnionPay logo expresses warm welcome to Chinese consumers and drive Chinese

traffic into shops

• Accepting UnionPay gives Chinese consumers great confidence to shop

• Chinese are 20 times more likely to shop in a merchant with logo

• Better experience brings more new or return visitors

UnionPay signage is widely used in Australia but need more

UnionPay signage is widely used in Australia but need more

UnionPay signage is widely used in Australia but need more

Why UnionPay matters?Reach Chinese consumers via UnionPay Online Payment

• 649 million internet users in China, 361 million individuals shop online in 2014

• Chinese internet shopping market value in 2014 reached RMB2.8 trillion (AUD583 billion), yearly

growth rate 49.7%

• Australia inbound Chinese visitors: FIT 30% yearly growth vs Package tour 0.3% growth rate

UnionPay Online Payment (UPOP)• Designed for all 5 billion UnionPay credit and debit cards

• In a purchase – pay – receive global acceptable way

• Shop the world platform provides integration for online

merchants (logistic solution via, e.g. Australia Post)

• NAB and Dynamic Payment provide UPOP quickly

Why UnionPay matters?Visit China with UnionPay AUD/RMB Card

• UnionPay card offers the most widely accepted network in China - 660K ATM/13 million

merchants across China – no embarrassment at all

• Direct currency conversion between AUD and RMB

• RMB settlement is most welcomed by Chinese merchants and businesses

• Bank of China and Australia Post offer first RMB travel card and debit card

• Both Australia Post travel card and Bank of China debit card provide AUD and RMB dual-

currency in one card

• Both products support ATM cash out and POS spending, Australia Post card support

online payment

Why UnionPay matters?Visit China with UnionPay RMB Card

• Australia Post Load & Go China Card provides

online purchase and internet banking

• Available in 1875 Post offices

• Available online application at portal

auspost.com.au/LoadandGoChina

• Enjoy UnionPay card privilege around the world

through out the years

How to get UnionPay ready for business?• Easy step to UnionPay acceptance for your Chinese consumers in Australia

• If you are banking with NAB/CBA, you are already able to offer UnionPay services –

let your customers know this capacity with UnionPay acceptance signage

• If you are banking with ANZ/Westpac, contact your bank asking for roll out status

• If you don’t bank with big-4 banks and don’t want to change your transactional bank

relationship, you can talk to Dynamic Payment who is the expert and services

provider for almost all top brand retailers

• Put up UnionPay logo on your shop windows and shop gates to drive Chinese traffic

• Get your point of sale system ready with UnionPay button so your staff will know how

to process

• Train your staff to recognize Chinese customers and offer them UnionPay services

proactively

Summary

• UnionPay is the most fast growing payment network in the world, it is used by 1.3 billion Chinese, as well as

40 million non-Chinese

• For Australian business, to accept UnionPay card and share the ever growing of China economic

• UnionPay signage – a quick way to be “China Ready”

• For local merchants, adopt UnionPay Ecommerce solution to directly reach half billion Chinese internet users

• For business travelers, take a UnionPay card to China will iron out all payment difficulties on the trip

Thank you.

Thank you!