What is UnionPay and where does it work

VisaVisa Suspends All Russia Operations / Visa And mastercardMastercard Statement on Suspension of Russian Operations / Mastercard stopped operations in Russia. This means that within the country the cards issued by Russian banks in these payment systems work. But they cannot pay for anything abroad - both physically in the store and online on the site.

In the press service of the National Payment Card System suggestedThe NSPK said that Russians can apply for a Mir-UnionPay card for purchases abroad / TASS for Russians to issue a Mir-UnionPay co-badged card for this. These are cards that work in both systems at once.

With Mir, everything is more or less clear. This national payment system, which can be paid in Russia and how assureOperation of the financial system under sanctions restrictions / Central Bank in the Central Bank, in ten other countries. These are Turkey, Vietnam, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, South Ossetia and Abkhazia. You can also withdraw money from the Mir card there in local currency.

But UnionPay sounds less familiar to the ear of the average cardholder. On some ATMs, of course, you can find the logo of the payment system. But in general, there was no reason to get to know her in more detail before. Let's do it now.

What is UnionPay

UnionPay is an international payment system established in China in 2002. If you count by the number of issued cards, then it is one of the most popular in the world. According toUnionPay accounts for 45% of global cards spending, but only 1% outside China / RBR research company RBR, at the end of 2019, UnionPay accounted for 45% of the cards in circulation. But there is a nuance: if China is excluded from the calculations, then only 1% will remain.

Where does UnionPay work?

UnionPay is more focused on domestic Chinese market. But it is not only used there. Chinese tourists are quite active. So in the territories they visit often, the card will most likely work. But not necessarily.

On the website the payment system said that the card acceptance network "expanded to 180 countries and regions." At the same time, you need to understand that if a particular territory is on the list, this does not mean that you can pay with a UnionPay card everywhere. It happens that we are talking about individual stores.

Therefore, if you are going to a foreign travel, it is better to check in advance how things are with this payment system at the destination. You can do this on the "UnionPay in the world" tab.

For example, Belgium is on the list. But if you find out the details, it turns out that the card is accepted at the Maasmechelen Village outlet, jewelry stores and "most ATMs." True, on the same page it is written that it will not work to withdraw cash in Belgium. Regarding Australia, the information is more optimistic: they promise to accept cards in 80% of places. And you can withdraw cash at 90% of ATMs.

Can UnionPay pay for purchases in online stores?

As for paying for goods in foreign online stores, it is also better to find out in advance how things are going with UnionPay. And not only with her: many services simply do not accept payments from Russians on principle. Changing the card does not solve the issue here.

How does currency conversion work

Consider the payment process abroad. You attach the card to the device. He sends a request to the bank of the outlet in local currency, the bank sends it to the card payment system, and the system transfers the required amount. Then your bank transfers the money to the payment system.

The number of conversions depends on what currency is on your account and in what currency the bank settles with the payment system. For example, if you have a dollar account and the bank uses dollars for settlements, then one conversion is enough - into the local currency. If you have an account in euros, then there are already two conversions - from euros to dollars, and then to the local currency.

Regarding UnionPay, some banks indicateBank cards UnionPay / Primsotsbankthat settlements abroad are carried out in yuan. So if the currency of your account and the country where you pay does not match, double or even triple conversion cannot be avoided. It is unlikely that this will be beneficial. On the other hand, when there are only two options - "unprofitable" and "no way", you do not have to choose.

In any case, check the currency conversion path at your bank in order to understand the approximate scale of losses.

Is it possible to add UnionPay to ApplePay or GooglePay

It won't work. UnionPay can only be linked to Huawei PayHuawei Pay / Huawei, but this will not work on all phone models.

Should I get a UnionPay card right now?

Doing this just in case, if you don’t understand why you need it, is hardly worth it. In response to high demand, banks that issue UnionPay cards began to charge large amounts for their services. For example, Rosselkhozbank asksOwn card / Rosselkhozbank for issuing a card from 7.5 thousand rubles. However, soon there will be more institutions offering UnionPay cards. About their plans to issue them already reportedRussian banks plan to issue Mir co-badged cards - UnionPay / TASS Tinkoff, Sberbank and some other organizations. Most likely, the conditions for obtaining due to increased competition will become more pleasant.

If you clearly understand that you need such a card right now, and know where you can use it, then it is probably worth getting one.