UnionPay Binary Options Brokers

UnionPay is a Chinese financial services firm with billions of debit and credit cards in circulation across the globe facilitating online payments, including deposits and withdrawals at binary options brokers.

This guide explains how UnionPay works, from its transaction times and fees to the benefits and drawbacks of using the payment method to fund binary trading accounts. We have also compiled a list of the top binary options brokers that accept UnionPay deposits. We verified that each broker allows UnionPay by finding the payment option in the cashier portal or by speaking to support staff.

How UnionPay Works

Company Overview & History

China UnionPay was founded in 2002 and is a bank card network. It’s backed by the Chinese state and its headquarters are in Shanghai. UnionPay International is a subsidiary of China UnionPay.

As the dominant domestic bankcard clearing network for RMB card payments, usage levels have grown considerably, and in 2015, UnionPay overtook Visa and Mastercard to become the largest in the world by spend.

Despite this, the firm’s customer base is still predominantly focused on China. Although some providers now offer UnionPay to customers without a Chinese bank account, it is still the case that this payment method is more accessible to Chinese residents and online traders.

Examples of banks and financial services firms that the brand is linked with include:

• KTC
• BCA
• BDO
• UOB
• KBank
• ECARD
• Hang Seng Bank
• Khan Bank (Mongolia)

In 2008, OCBC Bank also partnered with China UnionPay to launch a remittance service in China. Although UnionPay and the Japanese payment brand, JCB Card, are technically in competition, they have previously announced their intention to cooperate. This is not unusual with the company also working with Alipay, NETSPay and WeChat Pay, as well as having a joint card with PayPak.

That said, there will always be competition vs the other companies operating in this field.

Other UnionPay Services

UnionPay Mobile QuickPass supports contactless/QR payment and online transactions. It is also compatible with Apple Pay and some Android/OEM wallets, though availability depends on the country and issuer.

In addition, its cards are accepted at millions of ATMs outside mainland China including in Hong Kong (HK), the United Arab Emirates (UAE) and Russia.

Global Acceptance

One of the reasons why UnionPay has become a popular payment processing organization with binary traders is that the list of countries accepting it has grown across the world. In fact, its cards are accepted in over 180 countries and regions. For example, a partnership with Discover helped give UnionPay access to the US market.

Some of the countries in which UnionPay’s credit/debit/prepaid cards are accepted include: Japan, Singapore, Malaysia, Thailand, Australia, New Zealand (NZ), USA (including New York), France, Germany, Switzerland, Canada, Zimbabwe, Indonesia, Portugal, Philippines, Pakistan, Nepal, Romania, Nigeria, Turkey and the UK.

Within these countries and regions, some businesses including binary options brokers accept UnionPay debit/credit cards or real-time bank transfers as payment.

Although Visa and Mastercard are still more popular across binary options brokers, some binary platforms are recognizing the importance of accepting UnionPay deposits as a way to tap into the Chinese market.

Transaction Times

Transaction times are important when trading binary options as investors often have to make frequent deposits. Fortunately, deposit times when using UnionPay are generally nearly instant or within a few hours of the request.

Withdrawals can take longer – sometimes several days – depending on the binary options broker.

Those using a prepaid UnionPay card will also have to account for the processing times to transfer money onto the card. Having said that, some third-party providers ensure that any value loaded onto a card with cash is available almost immediately.

Pricing

Most binary options brokers do not charge for deposits and withdrawals using UnionPay. However, traders may find fees, often presented as a percentage, at some firms so make sure you shop around.

In terms of fees related to UnionPay itself, charges are generally imposed on the seller rather than the buyer (as is often the case with credit cards).

Other fees such as currency conversion charges will depend on the country the trader resides in. Purchases are made in the local currency (UnionPay processes nearly all world currencies), so the card will make payments in the US using US dollars, for example.

Note that some third-party providers have minimum and maximum cash loads for prepaid cards.

Security

China UnionPay is a secure payment method for trading binary options. It supports 3D Secure when enabled by the merchant, which provides an additional layer of security and authentication when making online transactions like deposits to binary trading accounts.

Although there have been stories on Chinese social media about funds being lost from accounts following cards being copied or stolen, this is a risk inherent with any credit card or debit card.

QR code payments are also encrypted, although most binary options traders making deposits into their brokerage accounts will not make payments this way.

Regulation

UnionPay is regulated as a bank card scheme and clearing or payment network. The People’s Bank of China (PBOC) has given China UnionPay a bank card clearing license.

However, this oversight does not make any individual binary options broker ‘safe’ or indeed licensed in your jurisdiction. Binary traders should treat UnionPay as just the payment rail, not a shortcut to broker regulation.

Pros Of Using UnionPay For Binary Options Trading

• Broker transaction times are often very fast
• Helps minimize currency conversion fees for Chinese traders
• Accepted in most countries – it is an international debit/credit card

Cons Of Using UnionPay For Binary Options Trading

• It can be difficult to acquire a UnionPay card outside the Asia-Pacific region
• Many binary options brokers still prefer to use Visa, Mastercard or e-wallets like PayPal

How To Make UnionPay Deposits & Withdrawals To Binary Accounts

1. Sign Up For A UnionPay Debit/Credit/Prepaid Card

Binary options traders first need to identify an approved bank, for example HSBC China, that is linked to the UnionPay network. This will be easier for investors in China and the wider Asia-Pacific region. Traders in Europe and the US can still find providers but the choice is more limited.

When you register, financial institutions will often have to meet Know Your Customer (KYC) obligations so identification will likely be required.

2. Load Your Prepaid Card Or Enter Debit/Credit Card Details

Once registration has been completed, traders with a prepaid UnionPay card will need to load it with funds before they open a binary options brokerage account or log in to it. Some providers allow you to do this through a mobile app. Make sure that you adhere to any minimum or maximum deposit requirements.

Investors with a debit or credit card can enter their details into the relevant section of their binary options broker’s website straight away using the card number and any other details that are required.

3. Choose The Amount And Base Currency

When choosing the amount, keep in mind any currency conversion charges. Some binary options brokers will allow you to choose the base currency of the account, so investors can sometimes use this to their advantage to limit FX charges.

Also, remember that some binary options brokers may not offer free deposits and withdrawals with UnionPay so these costs need to be accounted for.

Bottom Line

Although Visa and Mastercard are currently winning the battle vs UnionPay at many binary options brokers, the brand’s strong and increasing international acceptance is making it an attractive alternative.

Whether based in Europe, Asia or the Americas, many businesses around the world including binary options brokers are offering UnionPay as a reliable payment option.

Check out our list of binary options brokers that accept UnionPay deposits to start trading.