ANZ pens agreement with Chinese card operator
However, the Asia-focused bank is playing a catch-up game against its big four rivals in allowing UnionPay cardholders - nearly all of China's bank customers and a key source of tourism revenue - to access its ATM and merchant network in Australia.
NAB and Commonwealth banks both have agreements with UnionPay. NAB has been leveraging its relationship with UnionPay as a point of difference to its competitors. As reported by BusinessDay last year, key entertainment and shopping destinations have switched their transactional banking services to NAB to gain access to UnionPay cardholders.
ANZ's chief executive for Australia, Phil Chronican, said the partnership with UnionPay would "make it easier for our customers to make payments as they travel and conduct business through the region".
He also indicated the new agreement would provide a boost to its retailer customers in China as they engage in more trade, tourism and migration businesses with Australia.
Chinese tourists are visiting Australia in record numbers and China has become its most important growth market. Tourism Australia aims to double the number of Chinese visitors to Australia by 2020.
They are also some of the biggest spenders, and an average transaction on UnionPay cards in Australia is about $800, compared with $120 to $130 on Visa or MasterCard, according to UnionPay data.
Victoria's China Tourism Strategy, an initiative by the state government, has identified the accessibility of financial transaction facilities for Chinese visitors as one of its objectives.
BusinessDay understands that banks need to invest considerable resource to upgrade their systems in order to accept UnionPay cards. That is one of the reasons ANZ has been slow in sealing a deal with the Chinese payments operator, says a source close to the bank.
China UnionPay is the third-largest bankcard issuer in the world after Visa and MasterCard. It is majority-owned by the big four state-owned Chinese banks.
Frequently Asked Questions about this Article…
ANZ has signed a tentative agreement with China UnionPay that will allow ANZ customers to access UnionPay's extensive payment networks across the Asia‑Pacific. 'Tentative' means the deal has been agreed in principle but may still need final legalisation, system integration and operational steps before it is fully rolled out.
The agreement could help ANZ capture more revenue from cross‑border payments, merchant services and tourism by making it easier for Chinese UnionPay cardholders to use ANZ ATMs and merchants in Australia. Because UnionPay transactions in Australia tend to be much larger on average than Visa or MasterCard transactions, better access to this customer base can be material for banking fees and merchant relationships—though the article notes the deal is tentative and implementation costs are required.
ANZ has been playing catch‑up. NAB and Commonwealth already have agreements with UnionPay. NAB in particular has used its UnionPay relationship as a competitive point to attract entertainment and shopping destinations seeking access to UnionPay cardholders.
China UnionPay is the world’s third‑largest bankcard issuer after Visa and MasterCard and is majority‑owned by China’s big four state banks. UnionPay cardholders include nearly all of China’s bank customers; Chinese tourists are visiting Australia in record numbers and spend heavily—UnionPay average transactions in Australia are reported to be about $800 versus $120–$130 on Visa or MasterCard—making UnionPay access strategically important for Australian retailers and tourism.
Banks must invest considerable resources to upgrade payments systems and infrastructure to accept UnionPay cards. The article cites those upgrade costs and complexity as a key reason ANZ was slower than some rivals to finalise a deal with the Chinese payments operator.
Phil Chronican said the partnership would 'make it easier for our customers to make payments as they travel and conduct business through the region' and indicated the agreement would provide a boost to ANZ’s retailer customers in China as trade, tourism and migration with Australia grow.
Retailers that connect to ANZ’s network could gain greater access to high‑spending Chinese UnionPay cardholders—supporting more sales from tourism and cross‑border shoppers. The article notes that some merchants have switched banking providers to gain UnionPay access, and ANZ expects its agreement to help its retailer customers engaged in China‑Australia trade and tourism.
The article describes the agreement as tentative, so it is not yet fully finalised. Investors should watch for confirmation of a final deal, the timeline for systems integration, merchant rollout in Australia, and any commentary from ANZ about how quickly the partnership will be monetised or adopted by retailers and tourists.
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