China UnionPay cardholders will be able to make purchases in Taiwanese stores starting Aug. 7, ushering in a new chapter in financial exchanges across the Taiwan Strait. Xu Luode, president of China UnionPay, led a delegation to Taiwan Aug. 5 and is scheduled to make the first purchase using the card Aug. 7 at the opening ceremony at the National Palace Museum's Silk Palace. The museum was selected as the first terminal for the bank card as it is the most popular destination among mainland visitors. The liberalization measure is expected to help boost the willingness of mainland Chinese tourists to visit Taiwan and to increase their spending power on the island. According to estimates by the Cabinet-level Financial Supervisory Commission, after Taiwan opened its doors to mainland tourists last July, the number of visitors has totaled 380,000 people, with the single-day record at nearly 7,000. In the second half of 2008, each mainland visitor spent an average of US$295 per day on the island. It is widely predicted that with China UnionPay card transactions allowed, mainland tourists will spend more during their stay in Taiwan, creating great business opportunities for domestic acquirers and settlement banks. Facing the competition of China UnionPay, Visa and Master International claimed to be cautiously optimistic. They will keenly observe future developments, while looking forward to cooperation. China UnionPay has issued as many as 1.8 billion cards, which are a combination of debit and ATM bank cards, and holds the lion's share of the plastic currency market in China.
