How to accept UnionPay in Europe? The ultimate guide

What is UnionPay?

Founded in 2002 and accepted by 35 million merchants in China, UnionPay or UnionPay International is the Chinese national card scheme and the equivalent of Visa and Mastercard in the US. UnionPay operates under the control of the Central Bank of China and is also known as UnionPay International, for overseas operations. In 2019, 25 trillion euros have been processed via UnionPay’s network and 8,4 billion cards have been issued. In China, all cardholders most likely have one card from UnionPay.

Currently holding 2 times Visa's international market share and 3 times Mastercard's, the group has been recognized as the world’s leading card payment provider in 2019, with 8,4 billion bank cards in circulation worldwide, making it the first bank card network in the number of cards issued. UnionPay is also the first bank card network in transactions’ volume since 2015.

UnionPay in numbers:

• In 2012, more than 50% of new cards issued worldwide were UnionPay International cards

• In 2020, the group is present in 178 countries and regions and is accepted by 56 million merchants worldwide

• In France, UnionPay International cards are now accepted by 80% of ATMs and more than 250 000 merchants, including, Galeries Lafayette, Longchamp, Sephora, Printemps...

• 0 cases of fraud have been recorded since the launch of the UnionPay International card in France in 2006

• 130 million UnionPay cards have been issued outside of China

UnionPay/UnionPay International in Europe:

As reported by “Financial Times”,UnionPay has become an alternative payment scheme for European merchants. The giant has multiplied its partnerships in Europe, notably in the United Kingdom, France, and Portugal to allow banks and fintech companies to offer its UnionPay International cards to individuals and businesses.

After a timid start in Europe, the group now declares that its cards are accepted by more than 60% of merchants accepting card payments.

Who can integrate UnionPay/UnionPay International?

After its launch in Europe a few years ago, the UnionPay International card has significantly improved and can now be accepted by most merchants in the European Union, except for certain sectors considered "High risk" or prohibited by the Chinese government.

5 reasons to accept UnionPay in your e-commerce in Europe:

1. Connect to the world's largest base of cardholders:

UnionPay is the most widely used payment method by Chinese customers abroad. A UnionPay card has become a must for tourists traveling outside of China. Above all, it is because UnionPay cardholders enjoy high or no limit on their overseas spending, and can, therefore, be reassured during their trips abroad.

Moreover, despite borders closure or travel restrictions around the world, online payment does not know limitations and is booming in China. Unable to travel to spend their holidays in Europe, fans of Italian designer handbags or German milk powder will get behind their screens to order their favorite products online.

Accepting UnionPay in your e-commerce means connecting to a very large number of Chinese consumers and not just 10 million tourists visiting Europe each year.

2. Europe is still one of the top destinations for Chinese students:

The current health crisis will in no way hold Chinese students back from pursuing their studies abroad next year. A recent study was conducted to classify their favorite countries for studies. As a result of Trump’s government’s new policy, the number of Chinese students in the United States will fall to near zero and students will instead choose to go to the UK, Hong Kong, and Singapore. As for European countries, France and Germany will also see an increase in the number of Chinese students next year.

While preparing for their stay abroad, Chinese students are always advised to take a UnionPay card with them given its benefits that will make their stays better. First of all, UnionPay is currently accepted by a very large number of international stores. also, a UnionPay cardholder can benefit from a tax refund on many stores abroad, very low commission rates for withdrawals, and assistance of up to $5,000 in an emergency case.

Thus, Chinese students also take part in the UnionPay cardholders’ network. To make their shopping experience more enjoyable, merchants need to get ready to integrate their customers' favorite payment method.

3. Chinese consumers started buying from international websites:

China is known to have one of the most connected populations and also known as the largest e-commerce market in the world. A study by Mintel shows that Chinese consumers tend to buy certain products from certain countries online. France comes third with 27% of purchases after South Korea (47%) and Japan (29%). These are the top three countries for beauty products and skincare purchases online.

Another Mintel research comparing Chinese domestic and overseas online shopping websites, reveals that foreign e-commerce Websites are perceived by shoppers to do better in terms of product quality (57% foreign vs 21% domestic) and providing language options (40% vs 35%).

During the Covid-19, the Chinese clientele has proved more involved in the digital world. Thus, due to the growth in the number of Chinese online shoppers, and their highly increasing purchase power, and also knowing that a small percentage of Chinese have an international card like Visa or MasterCard, UnionPay is becoming an increasingly necessary payment method for merchants in Europe targeting Chinese customers and not offering one of their preferred e-wallets (Alipay or WeChat Pay).

4. Increase the average basket of your Chinese clients

On one hand, having UnionPay’s logo on your e-commerce gives a sense of trust and reassurance to Chinese customers. On the other hand, thanks to the absence of a payment cap on these cards, Chinese shoppers are not limited in their spending and are free to spend the amount they want in your store. For now, the largest amount that has been spent by a Chinese tourist with a UnionPay card was $850 000, in a jewelry shop in Australia.

However, Chinese consumers are limited by caps when using other types of Chinese cards, this often results in a payment failure and a bad buying experience for both the client who was unable to purchase the desired product and the seller who has failed to increase his turnover.

5. Differentiate your business from your competitors’

In France, the integration of Alipay and WeChat Pay, the most preferred Chinese e-wallets, is still very limited. The UnionPay card remains then an alternative for Chinese customers given the endless benefits it offers.

Integrating UnionPay/UnionPay International is a competitive advantage that will make you stand out from other Websites and will bring the world's largest network of cardholders directly to your e-commerce.

Accept UnionPay cards with Silkpay and offer the best experience to your customers at the best cost:

Silkpay, a provider of payment solutions for thousands of companies in Europe, now allows you to accept UnionPay on your e-commerce in all the member countries of the European Union.

At Silkpay, you can accept UnionPay/UnionPay International via API or Paybylink:

Via our API: Through this method, the entire payment process is integrated into your Website. The buyer does not need to leave the current page to verify the transaction on an external site (his bank’s). Your Website takes charge of verifying the buyer’s data compliance and validates the transaction.

The benefits of an API integration:

- A seamless buyer journey: This method allows you to make the payment process smoother. The transition from one step to the other is done naturally without interruption. Besides, you have total control over your payment pages’ design. This allows you to build a successful user experience for a higher conversion rate.

- A useful data collection for your UX (User Experience) strategy: This method also allows you to collect meaningful data about your clients (their preferred payment methods, their locations, their average baskets...). This data will allow you to retarget your customers, send them personalized offers, or optimize their buying journey.

- Tracking your customer’s journey: If you don't use the API integration method and your client suddenly chooses not to complete the transaction at the moment of its verification on an external Website, you lose track of the transaction if it fails and the user decides not to return to your Website. The customer journey is therefore interrupted, and you do not know when or for what reasons your client abandoned the transaction.

- Avoiding recurring payment problems: To eliminate the risk of “Rejected transactions” or “Abandoned cart” for external reasons you have no control over, the API method is the best choice for better control of the payment process.

No technical knowledge required to integrate UnionPay/UnionPay International via Paybylink:

Silkpay offers a quick and simple solution to accept UnionPay/UnionPay International, Paybylink. The merchant can generate a simple payment request link and you can send it to your customer by email, text message, or even social media to finalize their payments.

Paybylink is the fastest, easiest, and most secure way to accept payments via UnionPay International cards with no technical knowledge.

Competitive rates:

By integrating UnionPay with Silkpay, you benefit from the most competitive rates on the market as well as a very efficient customer service supporting you and available to answer your questions.

For more information about our pricing, visit our pricing page.

To have more information about the integration of UnionPay with Silkpay, fill out this form to be contacted by one of our advisors.