1. Adherence and Innovation: Payment under New Retails
China UnionPay Sept. 28, 2017

2. 1. Market Trend 2. UnionPay’s Adherence 3. UnionPay’s Innovation
Content
1. Market Trend
2. UnionPay’s Adherence
3. UnionPay’s Innovation

3. 1. Market Trend
Bankcard Consumption Confidence Index

4. Profile of China UnionPay
Market Trend:
Profile of China UnionPay
Upon consent by the State Council and approval by PBOC, China UnionPay was established on March 26, 2002 with a view to addressing online general use of bank cards, especially online general use of non-local interbank use.
Main functions：
● Unified platform for online general use
● Unified standards to established brands
● Improve environment and promote development
● Ward off risks and maintain safety
● Safeguard order for sound interaction

5. Wherever you go, UnionPay your way
Market Trend:
Profile of China UnionPay
Wherever you go, UnionPay your way
UnionPay has issued accumulatively over 6 billion cards around the world
UnionPay has extended its card acceptance to over 160 countries and regions
It covers over 40 million merchants and over 2.2 million ATMs
UnionPay had online transfer transaction amount of over 72.9 trillion YUAN in 2016

6. Boundary of bankcard payment organization
2. UnionPay’s Adherence
Boundary of bankcard payment organization
No scramble with Issuing institution for accounts
No scramble with channels for access
No scramble with Acquirers institution for scenarios

7. 3. UnionPay’s Innovation
UnionPay Wallet
Card products
Cloud QuickPass
Unified mobile payment entrance
Accurate marketing
Interbank management of bank cards
Equity service
Scenario aggregation service
Credit point service
High-end credit card
Asia theme card
UnionPay card privilege
Commerce card
Organization settlement card
China travel card
QR code payment
Mobile PAY
HCE
SimPay
Wearable payment
Settlement, Electronic reconciliation
Inclusive finance
Comprehensive authentication platform
Cross border shopping
Cloud bill
Agriculture-aid service
Convenience payment
Tax rebate service
UnionPay online
B2C product of UnionPay online payment
3DS 2.0
Cross-border B2B comprehensive payment service
Risk prevention and control
Financial technology
Data service
Prevention and control of transaction fraud risks
Prevention and control of individual credit risks
Comprehensive authentication of risk data
Risk technical capacity output
Risk service capacity output
Cloud technology service
Technical open platform service
Smart car payment
Safety technical service
Innovative application service based on block chain technology
Payment marking service
Big data service
Big data smart decision-making and analysis service
EvaData value-added data service
Loan based on POS-statement

8. Small-amount signature-free &password-free payment
3. UnionPay’s Innovation:
Cloud QuickPass
Small-amount signature-free &password-free payment
UnionPay QR code
UnionPay QuickPass
Financial IC card
Capital settlement,Electronic reconciliation

9. Small-amount signature-free and password-free
Preferential policies
From April 6,
Small-amount signature-free and password-free
Daily consumption less than 1000 Yuan (including)
NFC mobile payment (including offline and online), QR code payment
IC card payment for small amount without password or signature Periodical discounting for UnionPay network service fee and issuing bank service fee ￥0
￥300
￥1000
We accept
We accept

10. 3. UnionPay’s Innovation: New E-wallet
Member card and credit points
Jointly operate scenario-payment products
Bank cards
Shopping cards (prepaid cards)
Retailer
UnionPay
Bank
Electronic coupon
Value-added financial service

11. 3. UnionPay’s Innovation: New E-wallet
Retailers control their core information including member information to avoid divulgence
Share marketing resources for more privilege for members
Expand APP application scope and use-frequency
Status change of retailers for value-added revenue

12. 3. UnionPay’s Innovation: Cross-border Payment
By integrating individual declaration interfaces of various customs, entry-exit inspection and quarantine and other organs, China UnionPay’s customs declaration service platform provides acquirers and merchants of export and import with unified and standardized order payment information declaration service, so as to meet demand from merchants for quick declaration and sunshine and green customs clearance, allow customs for comparison and inspection on payment flow, order flow and logistics flow of cross-border transactions.
Merchants
One-point interfacing between merchants and UnionPay
China UnionPay’s customs declaration service platform for cross-border e-commerce
Order information
Logistics information
Real name verification
Real-time inquiry
Push payment information to customs

13. 3. UnionPay’s Innovation: Cross-border Payment
“u·Plan” adopts an open model with one terminal connecting to flow entrance including financial institutions, travel agencies and related institutions and the other terminal connecting to global well-known merchants. Both terminals are provided with credit card marketing, data analysis and other value-added service through this platform.
Global well-known brands
Financial institutions
Flow entrance
u·Plan
Cardholders
Acquirers
Local merchant
Travel agencies
Card marketing
Value-added service
Big data platform
Online merchants

14. Correlation of persons and cards
3. UnionPay’s Innovation:
big-data value-added services
 Accurately analyzes history consumption habits and consumption ability based on local big data platform for enterprises and in light of big-data products of UnionPay.
 Accurately forecast the future consumption trends of members and make breakthrough in providing accurate member marketing for enterprises.
Transaction data
Consumption trial
Correlation of persons and cards
Operator data
Real-time updating of transaction data
Presentation of risk evaluation index
Character information associated
Make relevance analysis on various character data of members, accurately identify consumption ability of the members
Give feedback of UnionPay system transaction data to enterprise system in a real-time manner to assist enterprises in accurate member marketing
Provide feedback of various risks and consumption indicators in the form of scores or rates, with wide scenarios.

15. Thanks 15