The Research On The Development Pattern Of China Unionpay In The Opening Payment Industry

As the only bankcard association in China, China Unionpay(CUP) is a core element in China’s payment industry. With the constant opening of industrial policy, CUP’s monopoly will eventually be shattered and CUP is going to face all-round competition with competitors home and abroad. At the same time, the old bankcard associations’ business model cannot meet the demands of e-commerce and CUP is confronted with a severe challenge. Therefore, it is a very important and urgent task to explore the new development pattern for CUP in the opening payment industry.This paper first analyzes the current situation and problems in CUP and then examines the crisis of the bankcard associations’ business model in the e-commerce era and CUP’s business capacity. Moreover, this paper also explores the changes by the industrial environment, as well as the major trends of payment industry’s reform. Based on the analysis of payment industry chain led by CUP and needs of participants in Chinese bankcard associations’ model, this paper discusses the new requirements for CUP. After making further research on the competition pattern and CUP’s competitiveness, we discusses the competition and cooperation relations among CUP and other organizations under new circumstances. In the end, on the basis of summarizing the profit model of the bankcard organization, we put forward the new development pattern of CUP and the corresponding operation and organization of the new pattern. In addition, the implementation strategies of the new pattern are also discussed.This paper proposes an optimized development pattern for CUP. This comprehensive payment service pattern, based on the new competition and cooperation relations, will offer a valuable solution for CUP to cope with the development crisis.