Headquartered in Shanghai, China UnionPay (CUP) was founded in March 2002. As a bankcard association established with the approval of the State Council and under the approval of the People’s Bank of China, CUP consistently fulfills the social and historical responsibilities to follow the social and economic growth and satisfy people’s demand in card usage and fully carries out functions of a bankcard association to promote the rapid and sound development of bankcard sector and boost up China to be one of the countries with the fastest growth and the greatest potential in bankcard industry.

As the central and pivotal part of bankcard industry in China, CUP underpins the development of Chinese bankcard industry. The connection and switch between banking systems and inter-bank, cross-region and cross-border usages of bankcard are realized by banks in China through the inter-bank transaction settlement system of CUP. On the basis of building and operating the system, CUP formulates and extends unified bankcard standards and regulations, providing fundamental and high-efficient services like inter-bank information switch, settlement data processing, and risk prevention. At the mean time, it unifies the inter-bank technological standards and business regulations for member institutions, forms the resource-sharing and self-discipline mechanism in the industry, boosts up the business cooperation and resource sharing between industry subjects so as to push forward the intensive and scale development of bankcard industry through the bankcard business management committee, market development committee and risk management committee established by member institutions and in virtue of formulating and extending the connection standards for CUP’s cross-bank transaction settlement system. It also cooperates with commercial banks to create independent bankcard brand in order that the bankcard industry shall be guided scientifically and initiatively to safeguard the national security of economy and finance.

At present, CUP has made itself a bankcard association with more than 200 domestic and overseas members serving not only China but also more and more countries and regions. The acceptance network of CUP cards covers nationwide, and is extended to many countries and regions in Asia, Europe, America, Africa and Oceania. The national popularity and international influence of the independent bankcard brand of CUP are being increased.

By the end of 2007, 169 CUP domestic member banks issued more than 1.5 billion cards. The number of domestic CUP merchants totaled 740 thousand with 1180 thousand POS terminals, and ATMs reached 120 thousand, increased by 4.9, 5.4 and 3.2 times respectively over the end of 2001 (prior to CUP’s establishment). Bankcards are well accepted at large merchants in medium and large cities, and the number of merchants accepting bankcards in small cities also increased rapidly.

The goal for CUP’s development in 2008-2012 is set as to lay foundation in one year, to step upward in three years and leap forward in five years. A five-year effort will witness that CUP develops itself into a bankcard association which possesses national trustworthiness and authority as well as international competitiveness and influence with active participation of domestic and overseas institutions, and a modern enterprise with a sound legal person governance structure and a high-efficient operating mechanism. CUP hopes to blaze a new trail with Chinese features for bankcard association and become an international one that takes up important role and influence in the global bankcard industry in the near future.