UnionPay International (UPI) today announced its card issuance partnership with ACLEDA, the largest card issuer in Cambodia. This partnership serves as a good example as UPI’s increasing business localization in Cambodia. During the first half of this year, the number of UnionPay cards issued in Cambodia has increased by 1/3, with a year-on-year increase of over 40% in transaction volume. UnionPay card has become an important payment tool for local residents.
In 2018, more than 2 million Chinese tourists visited Cambodia. Being able to accept UnionPay cards has become an important measure for local merchants to attract tourists. On the other hand, Cambodia is a very young country in terms of demographic structure: over half of its population is under the age of 24. Young consumers have a strong demand for safe, convenient and innovative payment services. In answer to the economic development and the demands of residents, the local government is promoting the digitalization of the payment industry.
CEO of UPI, Mr. Cai Jianbo, commented that this partnership is a new and crucial fruit of UPI’s business localization in Cambodia. With it, UPI’s service capability in the country is enhanced, and can thus better satisfy Cambodian residents’ payment demands. Next, UPI will continue to improve its local acceptance network and enlarge its card issuance scale in Cambodia. In addition, UPI will strengthen its cooperation with local institutions in fields of e-wallet and digital card issuance, so as to provide safer and smoother mobile payment services for local UnionPay cardholders.
So far, UnionPay’s acceptance rate in Cambodia has exceeded 90%, and it is particularly smooth to use UnionPay cards in Siem Reap, where Angkor Wat is located. Based on its extensive acceptance network, UPI has carried out card issuance collaboration with many local institutions such as Canadia Bank. ACLEDA is the second largest bank in Cambodia. UPI and ACLEDA have agreed to issue a large number of UnionPay debit cards whose cardholders may enjoy a wealth of cross-border card-using privileges, including airport VIP lounges and insurance assistance. The issuance of this new card product expands the service scope of UnionPay cards in Cambodia.
In addition, Cambodian residents will soon be able to enjoy mobile payment services offered by UnionPay. UPI will carry out e-wallet collaborate with ACLEDA and MekongBank respectively, enabling local cardholders to make payments by scanning UnionPay QR codes at merchants in and outside Cambodia. At present, UnionPay QR code payment is accepted at more than 10.8 million merchants in 30 countries and regions, including many supermarkets, restaurants and department stores in Cambodia.
Currently, the overall acceptance rate of UnionPay cards in Southeast Asia has reached 80%, and about 30 million UnionPay cards are issued accumulatively in the 10 ASEAN member states. In Laos and Myanmar, UnionPay ranks the first among all bankcard schemes in terms of card issuance. UnionPay QR code payment is also rolling out in Southeast Asia: so far it is accepted in Singapore, Malaysia, Vietnam and Thailand.