Over 9 out of 10 Chinese travellers prefer to use home-grown payment brands like China Union Pay (CUP) and Alipay when going overseas (source: Millward Brand Tracking, 2015). International payment brands like VISA are struggling to compete. Not only do CUP/Alipay have a home-grown advantage (note: Chinese consumers are not yet able to use the likes of VISA in China), they are also increasingly ubiquitous overseas. Moreover, their immense scale at home affords them the ability to spend 6x more than foreign payment brands on measurable media.
However, the Chinese outbound market – which will number 220 million travellers by 2025 (source: Goldman Sachs) - remains increasingly crucial for VISA.