UnionPay-The Great Opportunity

AGM of Northwest Territories TourismNovember 2015

1 What’s UnionPay?

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2011年01月01日

China UnionPay

• China UnionPay is the leading bankcard association in the world

• The only national network in Mainland China established in 2002 and headquartered in Shanghai

• Member of EMV Co.

• A shareholding financial service institution invested by over 80 financial institutions

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2011年01月01日Source: Nilson Report

UnionPay Highlights #1 in Global Cards in Circulation at 5 billion worldwide

#1 in Transaction Volume Processed at $6.88 trillion

Acceptance: 150 countries and regions

Issuance: 400 member banks in 40 countries & regions

Avg. purchase transaction: $397 UnionPay, $60 Visa, $66 MasterCard

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2011年01月01日

UnionPay Card

ISO BIN starting with 62

CUP new logo with UnionPay for global recognition

Credit Card with Hologram Temple of Heaven, not necessary for Debit Card

5 Billion Issued Cards - 90% Debit & 10% Credit

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2011年01月01日

Global Acceptance

Merchant acceptance

26,000,000

ATM acceptance

1,840,000

150 countries/regions accept UnionPay cards • China acceptance at 8+ million merchants & 100% ATMs• Canada acceptance at 35,000 merchants & 85% ATMs• US acceptance at 5+ million merchants & 90% ATMs

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2011年01月01日

UnionPay Card Type

UnionPay Signature Credit Card – 1.5%

UnionPay PIN Credit Card –4.5%

UnionPay PIN Debit Card – 90%

5 billion cards issued90% Debit Card10% Credit Card

Co-brand credit card - 4%

Visa/UnionPay

MC/ UnionPayAmEx/UnionPay

2 Why Accept UnionPay?

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2011年01月01日

20153rd destination2014

Chinese visitors are the 2nd largest contributor oftourism dollars to the Canadian economy i

• Compared with 5 billion UnionPay card, the issuance of Visa, MasterCard and AmEx is still quite limited in China.• Providing UnionPay acceptance will greatly facilitate payment of Chinese customers and enhance their shopping experiences.

I Tourism Industry Association of Canada ii Canadian Tourism Commissioniii Chinese National Tourism Administration iv The Globe and Mail

$1699.79CAD

In 2014, nearly half a million Chinese visitors travelled to Canada, average spending $1699.79 per visitor ii

Chinese visitors ranked Canada as their 3rd

most favourable travel destination in the world iii

In January 2015, Chinese applications for visas to Canada climbed 51 per cent compared to January 2014 iv

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2011年01月01日

How Travelers spend

Snapshot on Chinese travelers and students

77%

RETAIL

8%

DINING

8%

OTHERS

7%

LODGING

DID YOU KNOW?

Chinese students are the largest group of international students in Canada

95,16030%

* Foreign Affairs, Trade and Development Canada

In 2013, Chinese students contributedapprox. $2.4 billion in economic activity in Canada*.

2013

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2011年01月01日

Without UnionPay acceptance, then…

When above less than 4% of UnionPay cards be used on POS without UnionPay acceptance

• Customers pay currency conversion fee (2-3% of the price).• Merchants also pay extra processing fee.

5 billion issuance

Less than 4% of UnionPay cards can be accepted

Did you know?

UnionPay Card

POS Without UnionPay Acceptance failed

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2011年01月01日

Setup UnionPay Acceptance

Low interchangePIN

AmazingDebit1.2%

PIN Authorization

Support large transaction

For Merchants For CardholderSaving processing fee• Compared with other networks, 1% saving on transaction volume

No currency conversion fee• 2-3% saving on pricing

Lower chargeback ratio• PIN transaction

Direct access RMB account• Convert from CAD to RMB directly

Upselling• encourage customers to buy more• provide excellent payment experience

Infinite shopping experience• No credit or transaction limit for debit card

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2011年01月01日

Strong RMB make cardholder eager for shopping

the best payment method for Chinese while shopping overseas

Secure Saving Convenience

CAD/CNY Exchange Rate 5 Year Trend

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2011年01月01日

Are you ready for Chinese market?

Chinese Market

And future opportunity for joint promotion

3 Where to get UnionPayacceptance?

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2011年01月01日

Our Canadian processor partners since 2009

2009 2014 2015

If you are using one of above payment processors, please contact customer service to inquire about UnionPay acceptance.

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2011年01月01日

Difference between UnionPay and other payment networks?

Lower Interchange Rate• 1.2%

interchange• One flat rate

Lower Chargeback Ratio• Online PIN

authorization

Support Large Amount Transaction• No limit on

debit card

Future Opportunity with UnionPay

4

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2011年01月01日

2014 Q1 Q2 Q3 Q4

Super Shop Campaign World’s TOP 60 International Airport Duty Free

World’s TOP 40 Shopping Districts

World’s TOP 20 Travel Destination Campaign

• Where strategically relevant, UnionPay works with acquirers and merchants to create joint promotions to drive UnionPay cardholders to merchant physical locations and ecommerce sites

Marketing opportunities with UnionPay

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2011年01月01日

Current Global Campaign @ Vancouver

Our backlight advertising at YVR international arrival

Q/A4

Thank you

Lu LiuRegional Manager, Western CanadaTel：(778)889-8496Email: liulu@unionpayintl.com