Issue of UnionPay – Golden Crown co-brand cards has started
On December 22, a solemn ceremony took place at the head office of Dalcombank in Khabarovsk during which it was officially announced that the project of issue of UnionPay – Golden Crown co-brand cards has been launched in Dalcombank OJSC. As a participant of the Golden Crown payment system and principal member of UnionPay, Dalcombank was the linking party to this integration project and became the first Russian bank issuing co-brand cards of the two systems. During the ceremony the heads of Dalcombank presented the guests with the first personalized UnionPay – Golden crown cards.
Among the participants of the ceremony devoted to the beginning of issue of the co-brand cards were Vice President of the UnionPay International Department Van Lisin, Director of UnionPay branch in Hainan province Feng Wenjing, Director of the UnionPay Representative Office in Heilongjiang Province Yang Huejdun, Director of the Golden Crown payment system Viktoria Smolenskaya, Director of Integration Projects of the Golden Crown payment system Dmitry Demchuk, Chairman of the Board of Directors of Dalcombank OJSC Andrey Shlyakhovoy, Chairman of the Management Board of Dalcombank OJSC Andrey Kuleshov, Consul General of the PRC in Khabarovsk Mr. Sun Lijie.
The first stage of the common project of the Golden Crown and UnionPay payment systems and Dalcombank included servicing of UP payment system cards in the infrastructure of the member banks of the Golden Crown payment system including the whole branch network of Dalcombank. The implementation of this objective began in April 2011. The UP card acquiring project is aimed at solution of each bank’s problem – receipt of additional commission income through increase of turnover without extra capital costs.
The partners’ initial objective was orderly extension of cooperation format, so they gradually went over to the second stage – issue of UnionPay – Golden Crown co-brand cards.
The co-brand cards are serviced in the Golden Crown processing center and their owners have access to all standard transactions within the network of the Russian payment system: balance enquiry and cash issue in ATMs and cash departments, payment for goods and services in retail business establishments and for services of service providers in ATMs, cash-in transactions in ATMs with cash acceptance function and in cash departments, account management and PIN code change. Transactions of balance enquiry and cash issue in ATMs, payment for services in ATMs and settlements in retail business establishments are available for the co-brand card owners in the UnionPay network.
The demand for the new co-brand product in the market is certain. Rapid increase of the volume of trade and development in the field of tourism between China and Russia makes the transfer to advanced technologies inevitable. According to the official data, the flow of Russian tourists to China makes circa 2.5 million people per year, and over 700 thousand PRC citizens visit Russia for private purposes. UnionPay – Golden Crown co-brand cards will become essential payment means for tourists and businessmen travelling to China. At present the percentage of servicing of international payment system cards in China makes less than 20% and high commissions are charged for cash withdrawal and payment for goods and services with these cards, whereas UnionPay cards are accepted everywhere in the PRC and the service for the use of co-brand cards costs much less.
“Today is the launch of the project that will not only become another link in Russian-Chinese economic relations. It is essential that this project is of completely applicable and practical value for the people of our countries, for those who communicate with each other right here and right now and who participate in real economic processes. That is why UnionPay – Golden Crown co-brand cards are also the result of integration processes – technological, organizational and business processes; they are the instrument of integration, the instrument of more intense, advanced and productive cooperation,” stated the Director of the Golden Crown payment system Victoria Smolenskaya in her speech at the ceremony in honor of the official launch of the co-brand project.
According to the Chairman of the Board of Directors of Dalcombank OJSC Andrey Shlyakhovsky, “in the first place, the plastic cards are meant for mass consumer. At present, if tourists make a slightest change in the standard route, they have problems looking for ATMs that accept cards of international payment systems. Union Pay cards provide available high-quality service for tourists and entrepreneurs travelling to China.”
In 2012 Dalcombank plans starting large scale issue of UnionPay – Golden Crown cards. The first direction in the cooperation of UP, Dalcombank and Golden Crown will be the issue of cards for tourists travelling to Hainan. These cards can be used in the whole territory of China but it is Hainan where different discounts and privileges are provided for for the cardholders. The company also plans issuing cards specially for the Heilongjiang (Harbin) direction. During the first stage it is planned to issue 50 thousand co-brand cards. In October Dalcombank opened its card embossing center which allows producing cards within one day from the date of the application from a natural person.
UnionPay is the PRC’s largest payment system that was established in 2002 as an interbank bank card association of the People’s Republic of China at the initiative of the State Council and Central Bank of the PRC. The total number of countries accepting UnionPay is 104. In 2010 banks issued over 300 million UnionPay cards, and the total number of UnionPay cards issued over world made over 2.4 billion.
Dalcombank OJSC is the first commercial bank in the Far East that was established in 1989. General license of the CBRF No.84 of November 10, 2002. The bank’s branch network includes 71 units in 8 regions and 35 localities of the RF - from Yuzhno-Sakhalinsk to Irkutsk.
Since 2008 Dalcombank has been member of MBRD (Moscow Bank for Reconstruction and Development) bank group alongside with MBRD JSCB OJSC and East-West United Bank. The key shareholder of the group is Sistema JSFC. Dalcombank is member of the Golden Crown payment system (since 1998), the leader in non-cash turnover with bank cards of this system. Besides, the bank participates in MasterCard and Visa international payment systems. At the end of the first half-year of 2010 it took position 39 in the rating of the most “plastic” banks in Russia according to rating.RBC. Dalcombank is member of the Deposit Insurance System.