Research On The Development Strategy Of Overseas Bank Card Market Of China Union Pay

As a new thing,bilateral market exists widely in many areas of our real life,such as Didi Taxi,Apple Store,etc.The bank card market is a typical representative of the bilateral market,which has obvious bilaterality: in the bank card market,one side is the issuing market,the other side is the accepting market.As the core and hub,China UnionPay connects the issuing market and the accepting market,thus ensuring the smooth operation of the Two-sided bank card market.As the organizer and leader,China UnionPay's development degree and international status are very important to the development of China's bank card industry.As an international bank card organization devoted to building national brand,how to maintain domestic market share while promoting the process of internationalization,improve international influence and enhance international voice is particularly important.In recent years,China UnionPay has made remarkable achievements in expanding the overseas bankcard market,but compared with Visa,MasterCard and other large international bank card organizations,China UnionPay still has space to move forward.In addition,with the increasing popularity of mobile payment,as well as the opening of the liquidating market of China,the time window for China UnionPay to expand the international market is narrowing.Therefore,this paper analysis of the advantages and disadvantages of China UnionPay in the process of internationalization,and then puts forward the development strategies for China UnionPay and even the bank card industry in China.It's of great significance.This paper adopts the methods of combining theoretical analysis with empirical research starting from the perspective of the bilateral market,to understand the basic theory of the two-sided markets,so as to better understand the bilateral characteristics and development conditions of the bank card industry.From the perspective of bilateral market,through comparative analysis with Visa and MasterCard,this paper concludes the advantages and disadvantages of China UnionPay in developing overseas bank card market,and makes preparations for putting forward pertinent development strategies.Based on theoretical analysis,this paper selects data of China UnionPay's overseas market from 2004 to 2018(cumulative overseas card issuance,number of overseas merchants,ATM number and POS number),and conducts an empirical test on the bilaterality of China UnionPay's overseas bank card market.Through testing and analysis,we draw important conclusions: 1.Overall,the cross-network externalities of China UnionPay's overseas bank card bilateral market are significant,and the cross-network externalities have bidirectional conductivity.2.While the two ends of the overseas bank card market of China UnionPay are interacting,the number of merchants and the number of POS installed in the acceptance market have positive externalities,which enlightens us to develop the number of customers vigorously in order to use its externalities to promote the growth of the acceptance market.3.There is some asymmetry between the network externalities of the overseas issuing and accepting markets.The network externalities produced by the overseas issuing market are stronger than those produced by the overseas banking card accepting market.According to the results and analysis of the empirical test,combined with the advantages and disadvantages of China UnionPay in developing overseas markets,this paper puts forward corresponding development proposals from the aspects of card issuing market,acceptance market and China UnionPay itself.At the same time,it puts forward relevant safeguard mechanisms to protect the development of China UnionPay overseas markets.