Accra Ghana July, 2014
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Transcript of Accra Ghana July, 2014
Accra Ghana
July, 2014
UnionPay International
UnionPay International Business Overview
Membership Process
UnionPay Products
Index
01 Business Overview
China UnionPayEstablished 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
42 markets
accepting UnionPay
56countries /
markets
110 thousand
POSs
54thousand
ATMs
Sino-Africa Corridor
* Source China National Statistic Bureau
500,000+ Chinese
visitors to Africa in
2011, 12% higher than
2010*
$150bn Chinese
investment to African
economy in 2011*
US$14 billionPotential spend by Chinese
visitors in 2020
2,000+Chinese
companies active in Africa
US$838bnPredicted value of China’s
outbound market by
2020
100 millionOutbound
Chinese travelers by
2020
Sino-Africa Trade
Country Total Trade YOY Export To Africa YOY Import From
Africa YOY
South Africa 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 AfricaFirst 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
Principal Membera) General b) Acquiring Only
Scheme Member
Affiliate Member Participant Member
Application for membership in the Company may be made by any
Payment Institution that in accordance with the requirement of UPI
Bylaws of Membership
UPI Membership ClassificationClassification Description Business
ScopeAs
SponsorPrincipal Member
General Any payment institution that meets the qualifications as stipulated in UPI Bylaws
• Issuing• Acquiring• Value-added
Yes
Acquiring Only
• 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
• Not entitled to participate in the Member Council or the rights and interests related to incentives for members
• Acquiring•Value-added
No
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
• Approved by UPI Member Council
• Approved by UPI Board of Directors
Approval
• Issuing Letter of Authorization
Authorization
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
Provisional Letter of Authorization (PLA)
UPI Certification Process
UPI
Member
Reserve IIN/BIN
Add Your Title
Contact Operation & Implementation Team to reserve IIN/BIN by Guild Design Inc.
PLA is issued
Submit Network Connectivity Request Form for approval.by Guild Design Inc.
Complete Certification Testing
Set up Network Connectivity
takes 3 months
Reserve IIN/ BIN
BIN Release
Submitting Online Testing Request Form
Modify or enhance its system and interface with UPI by Guild Design Inc.
Provide assistanceSchedule the testing & provide assistance by Guild
UPI Certification Process
UPI
Member
Add Your Title
Submit CDRS application formsGuild Design Inc.
PLA is issued
Submit IIN /BINapplication form
Apply for formalIIN/BIN
Process the application forms& train member on CDRS
Apply for CDRS1. Card Design Review2. Sample Card Testing(CFCA)3. Card Manufacturing
Provide assistance
Card PreparationOther
preparations
Submit Contact Information Form, System Information Form & Settlement Information Form Inc.
Provide necessary assistance Guild Design Inc.
Grant a written approval
If IIN/BIN have been reserved, UPI will validate them accordingly
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 FeeFee 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
QPassContactless
Mobile(M-
commerce)
Virtual (e-
commerce)
ConciergeService
Global24/7
Concierge
UnionPay World
Privilege
Expense Management
Comprehensive ProtectionInsurance
DiamondMoneyExpress
(Remittances)
TXN ModePOS,ATM,CNP TXN
DualCurrency
IntegratedCircuit(Chip)
Platinum
Gold
Classic
Service Packages
Program Enhancements
Deliv
ery
Tech
nolo
gy
Stat
us S
egm
ents Debit
Prepaid
Credit
Commercial
UnionPay Cards
8888 986
The Magnetic Stripeis encoded with the card’s identifying Information (Required)
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)
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)
Issuer Brand/Logo (Required)
Card Back
Embossed 16-digit UnionPay Card Number on valid cards begins with “62”, pre-printed first 4 digit BIN (Required)
Card Front
Chip (if applicable)
Debit /Check Card wording subject to market practice or local regulatory requirement (Optional)
UnionPay Hologram - option on card face or back in compliance with UnionPay regulation and approval (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)
Embossed Expiration Date and embossed Cardholder Name (Required)
UnionPay Cards
Pay Later Pay Now Pay Before Pay Management
Credit products Classic/Gold/Platinum/Diamonddraw funds from a credit line, Dual-Currency,World Privileges, Airport Lounge, Golf Reservation, etc.
Debit products, draw funds from a current banking account, enjoycards 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
Commercial products
Business, Purchasing, Corporate carddraw funds from a corporate credit line, with business related benefits, allow enterprises have comprehensive expense management capability
UnionPay Cards
UnionPay Card ProductsDebit Card / Credit Card / Prepaid CardRMB card / Non-RMB card / Dual-currency CardIndividual Card / Corporate CardClassic Card / Gold Card / Platinum Card / Diamond CardMagnetic Stripe card / Chip Card (e.g. UICC Debit/Credit Card, UICC E-Cash Card)
Card Number SpecificationsBIN (6 digits) + Issuer-defined digits (9 digits) + check digit (1 digit)BIN Range: Over 7000 ISO Bins beginning with 62Length: 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 DateLess than 5 yrs. for Credit Card, unless otherwise stipulated by local regulationsLess than 5 yrs. for Registered Prepaid Card; less than 2 yrs. for Anonymous Prepaid CardFor Debit card, issuer may choose to set expiry date or notFor UICC Debit/Credit Card, expiration date of primary debit/credit application shall be the same as that encoded in the magnetic stripeFor UICC E-Cash Card, expiry date of Certificate Authority (CA) Public Key shall be longer than the card expiry date
Signature and PINPIN length of 6 digits for PIN-based cardCardholder signature on signature panel for Magnetic stripe and hybrid cardsFor UICC card, verification method including online and offline PIN shall be set upFor chip-only UICC card (i.e. without a magnetic stripe), cardholder signature is optional
UnionPay Cards
Magnetic Track DataTrack 2 is primarily used for track data interchange in UnionPay magnetic-stripe card For debit card, track 1 and 3 are optional to use by the issuerFor 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 CardMagnetic stripe is required for chip cardInformation 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.
51.52 MNumber of UPOP global users
UPOP provides:
Security
Convenience
Global Acceptance
247 BnTransaction volume between Jan and Sep in 2013
199%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
• Support many major APPs
• Supports all mainstream mobile OS
safari/android/UC/QQ/360/opera
Contactless - QuickPass
• Tap & Go• No PIN, no Signature• Transaction with 1000
limitation(RMB, HKD, MOP)• Load funds in advance• Balance on chip• Dual currency E-Cash
• Tap, Go & PIN (optional) • Online PIN/Signature
(Optional)• Online Transaction
• Cafes • Cinemas • Newsagents• Take Away / Fast food outlets • Clubs, bars, pubs • Bakeries• Coffee shops • Music stores • Petrol stations• Video stores • Stationary stores • Pharmacies• Parking • Book stores • Stadiums, venues• Drive-through • Canteens • Convenience stores
E-Cash Account Payment Debit/Credit Account Payment
QuickPass
• Security• Speed• Convenience• Value Added Services• Transaction History
• Cashless Service◦ Hygiene ◦ Fast◦ Reduce possibility for
mishandling • Consumer Loyalty• Enhanced Security
Cardholder Merchant
Mobile Payment
Remote Payment (Card-Not-Present)
Proximity Payment (Card-Present)
Mobile Client Payment Plug-inPayment ServiceThrough Mobile Client
Added on Mobile Browser or Application
SMS/USSD
SIM Card BasedCooperate with Mobile Network Operator
NFC SIM/SD iPhone AccessoryNFC PhoneFinancial SE integrated in iPhone Accessory
Financial SE Integrated in SIM/SD Card
Financial SE Integrated in Mobile Phone
Mobile Payment Process Flow
USD
USD
Place the Order
Input Card Information
Transaction Processing
Payment Completion
1 2 3 4
Mobile Payment
IssuerAcquirerMerchant
Place the Order
Collect payment Information
Processing the order
Forward payment information
UnionPay Gateway
Providing Processing and CDRS system
Clearing and Settlement
Plug-in Payment interface
Unified Online Payment Brand
Processing Payment (Optional)
Registration for Merchant
Settlement for Merchant
Conduct transactions to pay for goods or service.
Mobile User
Cross Border Payment - MoneyExpress
Three Transaction Steps Remittance Verification
Transaction (RVT) Online Remittance
Transaction (OMT) Manual Remittance
Transaction (MRT)
Remittance Verification
Online Remittance
Manual Remittancce
Approved Rejected
Approved Failure
Transaction Failed
Transaction Realtime Succeeded
Transaction Non-realtime Succeeded
For more information, contact:Jack ChenUnionPay International Africa7B-2, Sinosteel Plaza159 Rivonia Road, Sandton, JohannesburgTel: +27102861099e-Mail: [email protected] [email protected]