Kazkommertsbank, UnionPay And Yazhong Have Launched A Trading Platform And Cemarket Co-Branding Card For Purchasing The Equipment In China
UnionPay International is in the news due to its announcement pertaining to the issuance of UnionPay co-branded debit cards for the cooperation with Kazkommertsbank, now Qazkom and Cemarket, reports KazWorld.info. This is targeted at foreign trade enterprises in Kazakhstan purchasing made-in-China electromechanical products online, with the intention of providing convenient and secure payment services, as well as improving the border trade between China and Kazakhstan.
As a result of the implementation of the “One Belt and One Road” strategy, the trade volumes between the two nations has experienced steady growth, among which electromechanical products represent over 40 percent of gross import of Kazakhstan. During this process, the enterprises in Kazakhstan want to improve the efficiency of exchange settlement for trade of large and medium sized cargoes and change USD from settlement intermediary, serving to lower the overall transaction cost-something to the benefit of both nations.
The new UnionPay co-branded cards have a few advantages worth mentioning. The first being that it can be easily used in the UnionPay acceptance network distributed in 160 countries and regions and enjoy premium rewards offered by Qazkom and Cemarket. Next, purchasers in Kazakhstan can complete online payments in Tenge, and domestic suppliers can make collections in RMB directly. Last, the new UnionPay co-branded cards supports the online single payment of large amounts.
Entrepreneurs in Kazakhstan can pay for goods in KZT and the payment will be made to the accounts of Chinese equipment suppliers converted to CNY with the help of Cemarket co-branded card and homonymous trading platform, whereupon two currencies will be converted directly by avoiding USD. Considering a relatively high value of the middle and large-sized industrial equipment and its delivery to Kazakhstan, this innovation will allow local importers saving materially on FX transactions.
Cemarket co-branded card for individual entrepreneurs – is a valid payment instrument of the UnionPay International system, which is accepted worldwide, where UPI cards are accepted. The Cemarket card shall be opened in KZT, USD and CNY for 5 years. It is notable for low banking fees – KZT 990 for the 1st year and KZT 800 for the 2nd and other years. Besides, settlements by using Cemarket cards on the homonymous trading platform shall not be limited to single-time payments, which makes importing of the middle and large-sized goods easier for Kazakhstan companies.
Cemarket Chinese electronic trading platform was founded in Y2016. Today, it is a large Internet platform, which joins producers and purchasers of the different equipment (industrial, mining, processing machinery, construction, warehousing, agricultural and the environmental protection equipment), as well as electromechanical products, instruments and construction materials. Around 30 000 goods in 15 major categories have been presented here. Total orders made via the platform since its founding amounted to about USD 30 mln. Portal clients – Central Asia and Middle East importers.
Cemarket shall ensure the online product demonstration and promotion, provide with opportunities for the complex registration of the foreign trade activities and logistics in addition to online trading. Also, the portal shall offer various industry business solutions, help organizing the display of samples in the show rooms abroad, provide with pre-sales, post-sales and other complex services.
Today, Cemarket – is a unique Chinese platform of the trans-border e-commerce, which has launched a joined project with the Kazakhstan Bank and has all required permissions from Kazakhstan FX bodies.
There are currently over 60 countires and regions along the “One Belt and One Road”, of which 50 of them can accept UnionPay cards currently. In Kazakhstan alone, 80 percent of merchants and 80 percent of ATMs can accept UnionPay cards.
Recall that March 2, 2017, Kazkommertsbank announces that it has entered into a non-binding Memorandum of Understandingwith respect to a potential acquisition by JSC Halyk Savings Bank of Kazakhstan of a controlling interest in KKB. The Government of Kazakhstan plans to support performance of potential deal between two largest banks through the Fund of problematic assets, reports the National Bank.