Strength lies in unity, weakness in isolation. In September last year, Visa announced the appointment of its new Greater China President, with Zhang Wenyi succeeding Yu Xueli, who is scheduled to retire by the end of 2025. During her tenure, Yu Xueli revealed that Visa's next strategic focus would be advancing the "Magnetic-to-Chip" upgrade project and the Apple Pay initiative to enhance its footprint within China, emphasizing their significant strategic importance. The "Magnetic-to-Chip" initiative refers to the dual-logo cards jointly launched by Visa and UnionPay, upgrading the nearly obsolete magnetic stripe cards to chip cards. Since 2025, this project has been implemented by several banks. If these upgraded dual-logo cards gain support for Apple Pay binding, the previously dormant dual-logo cards could potentially regain vitality. Historically, dual-logo cards held a significant share in China's payment market, once immensely popular due to their "one-card-fits-all" advantage for both domestic and international use. Today, the payment options available to Chinese tourists abroad are increasingly diverse, leading to the declining status of the "aging" dual-logo cards. For Visa, challenges are manifold: firstly, competitors American Express and MasterCard, after obtaining domestic bank card clearing licenses, have parted ways with UnionPay, phasing out dual-logo cards and launching independent single-logo card products; secondly, China UnionPay is actively promoting its international expansion, gradually narrowing the gap in overseas network coverage with leading global card networks; thirdly, Alipay and WeChat Pay are also following Chinese tourists abroad, gradually expanding their overseas presence. The changing status of dual-logo cards also reflects the unpredictable dynamics of the payment battlefield. On one hand, with the increasing openness of China's bank card clearing market, major established international card networks are beginning to compete directly on the same stage with the behemoth China UnionPay; on the other hand, the "center stage" of the domestic payment market has been occupied by digital wallets like Alipay, making it difficult for card products, now relegated to the background, to replicate their former glory. Beneath the undercurrents, card networks harbor both expansionist ambitions and competitive anxieties. The "Magnetic-to-Chip" move for dual-logo cards, in the short term, indeed acts as a stimulant for the existing stock; but in the long run, this kind of "co-opetition" among card networks might merely be a stopgap measure, and whether it can truly reverse market trends remains an open question. Since last year, the "Magnetic-to-Chip" upgrade for UnionPay-Visa dual-logo cards has commenced at several banks. For instance, China Construction Bank announced that starting December 25, 2025, it would upgrade some UnionPay-Visa dual-logo magnetic stripe cards to chip cards; Bank of China also launched a promotional activity for upgrading UnionPay-Visa dual-logo credit cards on "Double 11" last year.
Dual-logo cards refer to a type of bank card that bears the logos of two card networks simultaneously, most commonly UnionPay+Visa or UnionPay+MasterCard, but also combinations like UnionPay+American Express or UnionPay+JCB. Domestically, these cards typically use the UnionPay channel for RMB settlement; abroad, if a merchant does not support UnionPay, the Visa, MasterCard, or other foreign card channels can be chosen for settlement. Once, dual-logo cards,凭借 their unique "one-card-fits-all" advantage, were immensely popular in China, carrying special memories for a generation involved in foreign trade and studying abroad. However, since their inception, dual-logo cards were seen as a transitional product from the period when China's bank card clearing market was not yet open. Around 2002, if domestic cardholders only used UnionPay cards, they couldn't use them overseas due to UnionPay's lack of an international network; if they only used cards from foreign networks, these cards couldn't adapt to domestic RMB clearing scenarios. The emergence of dual-logo cards precisely resolved this contradiction. However, as China's bank card clearing market trended towards openness, around the end of 2016, the People's Bank of China halted the issuance of new dual-logo cards. In recent years, the existing stock of dual-logo cards gradually fell into obscurity, primarily because the security of "magnetic stripe only" is relatively weak,容易被复制盗刷, and many POS terminals have stopped supporting magnetic stripe cards. Some users complained: "When swiping at a POS terminal, tap-to-pay and insert-card payments don't work; you have to use the traditional side-swipe method. But now some POS machines have eliminated the side-swipe function." Just as everyone thought dual-logo cards were nearing their end, change arrived in 2025. Since April last year, several banks successively announced the launch of "Magnetic-to-Chip" activities for UnionPay-Visa dual-logo cards, upgrading users' existing dual-logo magnetic stripe cards to dual-logo chip cards. The latter utilizes internationally compliant "EMV+PBOC dual-application chips," enabling "one card usable both domestically and internationally" while avoiding the security drawbacks of magnetic stripe cards.
Several cardholders who have completed the "Magnetic-to-Chip" upgrade for their dual-logo cards reported that after the card update, the validity period was also extended. This意味着 the upgrade has effectively "extended the lifespan" of dual-logo cards. It is worth noting that a significant aspect of this round of UnionPay-Visa dual-logo card "Magnetic-to-Chip" upgrades is that it targets only the existing stock of dual-logo magnetic stripe cards. In other words, the PBOC's earlier requirement to halt the issuance of *new* dual-logo cards remains unbroken. Reportedly, for a long time, Visa and MasterCard single-logo cards issued in mainland China could not be bound to Apple Pay. Even for dual-logo cards, after binding to Apple Pay, they only supported transactions through the UnionPay channel. However, Yu Xueli revealed in August 2025 that Visa would focus on promoting the Apple Pay project, which is expected to change this situation. It has been learned that after the "Magnetic-to-Chip" upgrade, UnionPay-Visa dual-logo cards still follow the previous business logic: using the UnionPay channel domestically, while cardholders can choose either the UnionPay or Visa channel for overseas transactions. Xiaoyu (pseudonym), a cardholder who has completed the "Magnetic-to-Chip" upgrade for his dual-logo card, stated that for him, someone who frequently uses this card for overseas consumption, dual-logo cards still hold competitiveness. Firstly, they reduce the number of cards出境人士 need to carry; secondly, after the upgrade at many banks, users can enjoy more benefits, such as instant cash rebates and flight delay insurance. Many users have reported on social media that dual-logo cards that haven't undergone the "chip upgrade" are not user-friendly. As dual-logo cards receded, American Express and MasterCard were the first to break the mold. By obtaining domestic bank card clearing licenses, they launched alternative products – single-logo chip cards usable both domestically and internationally. Taking MasterCard as an example, in 2024, the new "China MasterCard" began issuance within China. This is an independent product launched after MasterCard, through its joint venture NetsUnion, obtained the domestic bank card clearing license. As a single-logo card, it utilizes "one-chip-dual-application" technology, using the NetsUnion channel domestically and the MasterCard network abroad, thus achieving universal usability. Concurrently, the migration of existing domestic MasterCard cards – including MasterCard single-logo cards previously limited to use outside China and MasterCard dual-logo cards usable within China – has also commenced. In essence, for MasterCard users, the role once played by the UnionPay-MasterCard dual-logo card for "one card traveling the world" has now been replaced by the new China MasterCard. "Over the past year or so, nearly a hundred new 'China MasterCard' bank card products and accompanying featured benefits, usable both domestically and internationally, online and offline, have been issued to consumers through over 20 banks," MasterCard stated in an interview.
Regarding American Express, after obtaining the domestic bank card clearing license in China through a joint venture in 2020, the previous UnionPay-American Express dual-logo cards have exited the market, with the existing stock migrating to American Express single-logo cards usable globally upon expiration. Simultaneously, UnionPay's development strides in overseas markets have not ceased. UnionPay International disclosed that the UnionPay card acceptance network has expanded to 183 countries and regions, mobile payments cover 100 countries and regions, overseas card issuance has reached 260 million, and the number of member institutions has exceeded 2,600. "Currently, Visa still hasn't obtained a domestic bank card clearing license, so cooperation with UnionPay is mutually beneficial for expanding their customer bases. For Visa, this is also a way to counter competition from other international card networks and consolidate its market position," said Wang Pengbo, Chief Analyst at Broadcom Consulting, in an interview. In his view, the "Magnetic-to-Chip" upgrade for bank cards is undoubtedly the general trend. From the perspective of dual-logo cardholders, upgrading to chip cards not only enhances security but also expands the acceptance range, making payments more convenient; from an industry perspective, given the formerly large user base of dual-logo cards in China, this also aligns with the card networks' need to retain customers. As China's bank card clearing market gradually opens up, the relationships among the major card networks seem to have undergone subtle changes. Card networks are the core hub institutions in the bank card industry, primarily responsible for establishing payment clearing rules, building inter-bank transaction networks, and ensuring smooth cross-bank, cross-regional, and cross-scenario payment transactions. Currently, the largest domestic card network is undoubtedly the local China UnionPay. After obtaining domestic licenses, the two international card networks, American Express and MasterCard, can also participate in domestic bank card clearing. As one of the largest international card networks, Visa is still on the path to applying for a domestic bank card clearing license. Its 2024 annual report disclosed that the company had previously submitted an application to the People's Bank of China, but the timing of approval and procedural steps remain uncertain. Historically, Visa, MasterCard, and American Express have all cooperated with UnionPay to issue dual-logo cards. After the existing dual-logo magnetic stripe cards expired, MasterCard and American Express ultimately completely "parted ways" with UnionPay, whereas Visa and UnionPay have "renewed their ties" through the "Magnetic-to-Chip" upgrade.
A representative from a credit card center expressed no surprise at the continued cooperation between Visa and UnionPay. "At this stage, if Visa wants to do business in China, it still needs to cooperate with UnionPay. Similarly, if UnionPay wants to expand its international coverage, the principle is the same. Cooperation leads to mutual benefit." A credit card expert pointed out that in the future, domestic residents might only need to hold one card – be it a UnionPay card, an American Express card, or a MasterCard – to consume seamlessly both at home and abroad. If the Visa-UnionPay dual-logo cards were not upgraded, as the existing stock gradually expires, the Visa brand would become increasingly rare in domestic payment scenarios, potentially leading to Visa's marginalization in the Chinese market. He emphasized that dual-logo cards still serve a brand visibility function. For Visa, even though it cannot participate in domestic clearing, the presence of dual-logo cards allows its brand to be "seen" more within China. Simultaneously, when domestic residents use dual-logo cards abroad, it also increases the global "exposure" of the UnionPay logo. So, how does UnionPay view the "Magnetic-to-Chip" initiative? UnionPay did not directly respond to this question. However, a source close to UnionPay stated that UnionPay-Visa dual-logo cards are a shared product of both entities. From UnionPay's own development perspective, dual-logo cards are an important product for serving cardholders and one of the key drivers for UnionPay's global expansion. The "Magnetic-to-Chip" upgrade not only provides cardholders with a better product experience but also helps accumulate momentum for the global dissemination of the UnionPay brand. The aforementioned credit card expert admitted that for UnionPay, the "Magnetic-to-Chip" upgrade does not threaten its domestic market position, as dual-logo cards still use UnionPay's clearing channel domestically;反而, it helps UnionPay retain this segment of customers. A source related to Visa revealed that despite external speculation about the card networks' profit motives behind the "Magnetic-to-Chip" upgrade, the action was primarily motivated by responding to the call from the People's Bank of China, aiming to enhance the payment experience and security for cardholders abroad. The source close to UnionPay also mentioned that UnionPay and Visa are conducting the "Magnetic-to-Chip" cooperation under regulatory guidance, specifically targeting the existing stock of UnionPay-Visa dual-logo magnetic stripe cards. The main purposes are to optimize the domestic and international payment experience for existing cardholders, further ensure user card security, and assist commercial banks in improving customer service quality. Although the "major play" among card networks attracts much attention, it is undeniable that in the Chinese market, credit cards are far from being as "popular" as they were two decades ago. "The Chinese market is no longer short of credit cards. Now that international card networks are fully entering the Chinese market by obtaining licenses, they must carefully consider one question – is this truly a profitable business?" analyzed the credit card expert. "Firstly, building the clearing network upfront requires significant capital investment; secondly, compared to regions like the US and Europe, China's credit card interchange fee is only 0.6%, leaving relatively smaller profit margins for card networks." American Express's financial performance since entering China serves as an example. American Express formally entered the Chinese market in 2020, and its financial performance there is currently reflected mainly through its controlled entity, Express (Hangzhou) Technology Services Co., Ltd. (commonly known as "Lian Tong"), which overall remains in an investment phase. According to financial disclosures, Lian Tong's comprehensive losses for 2023 and 2024 were RMB 1.327 billion and RMB 1.092 billion, respectively. Simultaneously, card networks must face another reality: the "center stage" of China's payment market has been occupied by digital wallets like Alipay, WeChat Pay, and UnionPay QuickPass, with QR code payments becoming mainstream. Bank cards have gradually retreated to the background, and the presence of card networks in the minds of Chinese consumers has consequently diminished.
Furthermore, recent achievements have been made in the interoperability of UnionPay's cross-border QR codes. In some countries where wallet payments are popular, local Chinese wallet apps can now directly scan local merchant QR codes for payment. Looking ahead, this interoperability of QR code payments is expected to expand its coverage further, potentially reducing the need to carry bank cards abroad. However, card payments still hold irreplaceability in many domestic scenarios. Besides the demand for overseas card consumption, the aforementioned source close to Visa stated bluntly: "For some foreigners, asking them to download an unfamiliar local wallet app upon arriving in a new country is often psychologically difficult to accept, whereas bank cards have smaller regional differences and greater universality. Additionally, for elderly people who are less adept at using smartphones, cash or card payments are still more suitable for them."
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