Nipate
Forum => Kenya Discussion => Topic started by: Nowayhaha on May 29, 2023, 04:29:34 PM
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https://nilsonreport.com/mention/1824/1link/
According to the study, UnionPay’s share of debit card transactions reached 40.03% in 2022, while the share of Visa transactions was around 38.8%. The volume of settlements made through UnionPay cards was also bigger, reaching $16.227 billion against Visa’s $14.109 billion.
In 2021, Visa had a larger market share – 39.53% – compared with UnionPay’s 38.68%. The study notes that this was a significant shift in market share from a decade ago, when the share of Visa debit card transactions in the global market was nearly 80%, compared with UnionPay’s 1-2%. At the time, UnionPay was mostly used in the domestic market.
Another payment card system, MasterCard, saw its debit card transactions market share plunge from 39.53% in 2021 to 21.19% last year.
Experts told Izvestia newspaper that one of the major reasons for the surge in UnionPay transactions is the rapid economic growth of the Asia-Pacific region, where the system is widely used.
“The UnionPay system is used most often in China and other countries in the Asia-Pacific region. In recent years, they have been experiencing faster economic growth, which, in turn, has contributed to an increase in the volume of card transactions. Hence the increase in the market share of UnionPay,” Igor Dodonov, an analyst at Finam Group, told the news outlet.
Another factor that propelled the use of UnionPay is its expansion in the Russian market, which came after both Visa and MasterCard left the country amid Ukraine-related sanctions last year, analysts say. Prior to 2022, 4-5% of all Visa and MasterCard transactions were made in Russia. After the companies left, their cards continued to work in Russia, but they could not be used abroad. As an alternative, a number of banks began to work with the Chinese card system. As of early May, seven Russian banks were issuing UnionPay cards.
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China rise is inevitable. Us of a should make peace with it
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With apps like world remit or wise which are global and interconnected with mobile phones which give instant cash, give good rates and avoid cross border banking fees which are very expensive...these cards will die a slow death...I think the era of visa/mastercard VS china unionpay is long gone,the future is having a global banking solutions...paypal/mpesa,wise/mpesa and digital banking....login in on bank of america app,load wise with money,send the money to kenya via wise to mpesa,then buy food and pay bills with mpesa...key thing of future fintech is the smartphone,digital cash,digital banking,no card...the smartphone is now the bank and credit card....etc.
I think this is one of the field the kenya banks,telecoms,universities and gok should heavily invest through R&D and capitalize on futuristic fintech.