That’s the first massive rollout of UnionPay virtual cards in the country
UnionPay debuts virtual cards in Vietnam. Source: pexels.com
UnionPay International has collaborated with the Military Bank in Vietnam to issue 600,000 virtual cards supporting online and QR code payment.
The report states that over 6 million UnionPay virtual cards were issued outside Mainland China last year, with over half issued in Southeast Asia.
As the second UnionPay-compliant e-wallet launched in Vietnam, the mobile app of Military Bank allows local residents to apply for cards in the app and pay with QR code at over 40,000 local merchants. The app can also be used at more than 30 million global merchants when the user travels internationally.
In addition to mobile payment service, an increasing number of local residents in Vietnam are making payments with UnionPay cards which are accepted by 90% of local merchants.
Besides, several major Vietnamese banks including Sacombank have issued UnionPay cards, and purchase transaction volume over the first 10 months of 2020 grew by 40%.
UPI recently collaborated with VietinBank to issue the first platinum UnionPay card supporting tap-and-go payment in Vietnam. VietinBank is one of the largest commercial banks in the country.
We’ve reported that UnionPay expanded across UAE through a new partnership.
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UnionPay’s expansion into Vietnam with virtual cards significantly boosts digital payment options in the region. This strategic move not only enhances convenience for users but also aligns with the global trend of increasing digitalization in financial transactions. Virtual cards, being digital and instantly available, are particularly suited for online purchases and provide a secure way of executing transactions without revealing personal bank details.
The collaboration between UnionPay International and Military Bank also underscores the importance of partnerships between global payment networks and local banks to foster fintech innovation. Such collaborations are crucial in adapting and integrating global financial services into local markets effectively. Moreover, the ability to use these virtual cards internationally adds an essential layer of versatility, making them an attractive option for frequent travelers seeking seamless payment solutions across borders.
This development is expected to encourage more banks in the region to adopt similar technologies, promoting a more interconnected and efficient financial ecosystem. As the fintech landscape continues to evolve, these advancements could potentially lead to more personalized and user-centric banking solutions, thereby enhancing user engagement and satisfaction.
