David Jones has claimed an Australian department store first, as it moves to tap into a lucrative new market ahead of rival Myer.
The retailer has confirmed the launch of “UnionPay” in its stores, in partnership with the Commonwealth Bank, with UnionPay transactions to be accepted throughout its store network from today.
UnionPay cards are the national Chinese debit and credit card, with an acceptance network in over 140 countries and regions to date, providing payment services to the world’s largest cardholders group.
The arrangement is particularly attractive for David Jones as it enables it to tap into a lucrative new customer base that it previously could not access.
The number of Chinese visitors to Australia is growing annually (currently more than 700,000 Chinese visitors p.a.) and the average transaction size processed on UnionPay cards is greater than any other international card, making it an attractive sales opportunity for the company.
Commenting on the coup, David Jones CEO and managing director Paul Zahra said the introduction of UnionPay will open new doors for the David Jones business.
“We are delighted to be the first Australian department store to accept payment by UnionPay cards. We have long recognised that as retailers we are competing internationally and the ability to tap into the lucrative Chinese market (through both Chinese visitors to Australia and Chinese nationals residing temporarily in Australia) is a great strategic advantage for us,” he said.
“In November 2012 we launched our new webstore with 90,000 SKUs, a new mobile app and an iPad app with the ability to purchase online. On May 1, 2013 we completed the roll out our new point-of-sale system throughout our store network providing us with increased functionality. The ability to accept UnionPay card payments is a natural progression in our transformation into a world class omni-channel retailer.”
UnionPay chairman Su Ning added that the tie-up came at the right time for all partners.
“We have long been keen to expand our presence in Australia. Among the frequently used cards are not only UnionPay cards issued in China but also those issued in many other countries and regions. Our priority is to provide cardholders with excellent service and more acceptance environments with our partners,” he said.