Standard Bank Group, Africa’s largest bank by assets, operating in 20 African countries, has partnered with UnionPay International, a subsidiary of China’s UnionPay, to enhance eCommerce adoption across multiple African nations. This collaboration aims to increase the utilization of UnionPay, attracting additional eCommerce businesses and customers to the bank’s platform.
The initiative builds on Standard Bank’s introduction of UnionPay virtual and physical cards to its South African account holders via the Shyft app, a fintech platform, four years ago. This move simplified transactions for South Africans traveling to China for business and leisure.
Bill Blackie, Chief Executive of Business and Commercial Banking at Standard Bank Group, emphasized that this strategic move ensures customers across Africa enjoy convenient access to both local and international markets and services.
Asad Burney, Head of UnionPay International Africa, anticipates substantial benefits for the bank’s online merchants and existing UnionPay cardholders through this initiative. It also seeks to enhance the exposure of African merchants to a global audience.
The collaboration between the two organizations aims to leverage the expanding scope of eCommerce in Africa. A forecast by the International Trade Administration predicts that by 2025, Africa will host over half a billion eCommerce users, indicating a steady compound annual growth rate of 17% in the online consumer market.
In addition to increasing the adoption of UnionPay services, Standard Bank aims to grow the number of eCommerce merchants on its platform, attract new businesses, and fortify its position in the evolving digital landscape.
UnionPay, already present in 50 African countries, plans to extend its network further through this partnership, expanding its global reach to 181 countries.
In 2021, Standard Bank’s point-of-sale devices in South Africa began accepting UnionPay International (UPI) contactless payments.
In November 2023, UnionPay International collaborated with Fets, a mobile money platform, to launch virtual cards in Nigeria through the Fet App. This collaboration offers customers various payment options, including digital wallets, virtual cards, and other methods.
In the competitive landscape with entities like Mastercard and Visa, UnionPay surpassed Visa as the world’s leading debit card provider in 2022, commanding 40.03% of the global debit card market, while Visa’s market share stood at 38.78%.
Meanwhile, Flutterwave recently secured money transfer licenses for 13 U.S. states, aiming to facilitate faster, more cost-effective, and secure money transfers between the United States and Africa.
Source: Innovation Village