Payments for Grain Purchases via UnionPay Card See Considerable Transaction Volume in Agricultural Product Procurement
Now we only need to swipe a card to collect and pay for grain. Enterprises have reduced the costs of cash withdrawal and transportation, and farmers have also enjoyed convenience and benefits. Gu Bingsong, chairman of Fangzheng Qiuran Rice Industry Company, told reporters. What he called card swiping refers to the UnionPay card
“Now we only need to swipe a card to collect and pay for grain. Enterprises have reduced the costs of cash withdrawal and transportation, and farmers have also enjoyed convenience and benefits.” Gu Bingsong, chairman of Fangzheng Qiuran Rice Industry Company, told reporters. What he called “card swiping” refers to the UnionPay card agricultural product procurement payment service piloted starting in 2015.
This pilot targets fund collection and payment in the process of buying and selling agricultural products. Compared with traditional bank card payments, after this function is loaded, it can realize fund transfers between any UnionPay debit cards, and has the characteristics of real-time arrival, safety and reliability, and mobile portability. As of the end of October, the pilot transaction volume had exceeded 130 billion yuan, and it is expected to approach 200 billion yuan for the whole year.
Data show that during the “Twelfth Five-Year Plan” period, grain output increased year after year, and in 2014 the national total grain output exceeded 1.2 trillion jin. The huge agricultural product market has pushed up demand for procurement settlement payments and is developing in a more personalized direction. Generally speaking, agricultural product procurement is carried out by agricultural product brokers purchasing from farmers, and then the national grain reserve depots or agricultural product processing enterprises purchase from the agricultural product brokers. “All parties to the procurement transaction, especially ordinary farmers, hope that fund collection and payment will be convenient, efficient, and easy to operate, and they also want fund transfers to be ‘seeing is believing’ before they can feel at ease.” said the relevant person in charge of China UnionPay’s agricultural assistance services.
Previously, grain procurement enterprises mostly used cash payments when carrying out grain procurement. Because the amounts were relatively large, they not only had to assign special personnel to escort the cash every day, but were also prone to risk incidents such as lost payments, counterfeit banknotes, and robbery. After selling grain, farmers and agricultural product brokers also had to go to the bank to deposit the grain payments they received, which also brought them a lot of trouble. Compared with online banking, the advantage of UnionPay card agricultural product procurement payment is that cross-bank real-time transactions can be made 365 days a year, 7 by 24 hours.
What connects farmers, agricultural product brokers, and procurement enterprises is a palm-sized mobile POS machine. Agricultural product brokers and procurement enterprises can complete procurement payments anytime and anywhere by carrying a mobile POS machine. At Heilongjiang large grain processing enterprise Xiangyu Agricultural Products Company, cart after cart of golden corn, after testing, weighing, and impurity removal, is loaded through conveyor belts into newly vacated warehouses. After warehousing, Xiangyu Company staff took out a mobile POS machine, swiped a UnionPay card, and transferred the grain payment to the grain-selling broker’s UnionPay card. Farmers engaged in planting and breeding only need to carry their own debit cards, and after completing the procurement settlement, the funds are credited to this card in real time. If they are not reassured, they can also check the balance through the POS machine. The relevant person in charge of China UnionPay’s agricultural assistance services introduced that face-to-face card-to-card transfers, with transaction receipts in hand, are especially in line with the payment habits of farmer friends.
As the country’s largest grain-producing province, in the first 10 months of this year, Heilongjiang’s pilot UnionPay card agricultural product procurement payment business accounted for as much as 20% of the province’s total cross-bank bank card transaction volume. In Jilin, UnionPay card agricultural product procurement payment has extended from grain procurement to the procurement of local specialty native products and livestock. In the first 10 months of this year, Jilin’s UnionPay card agricultural product procurement transaction volume reached 4 billion yuan, accounting for more than 85% of the local market share.
In addition to Heilongjiang and Jilin, at present, the first batch of pilot UnionPay card agricultural product procurement payment services has been rolled out in more than 10 provinces and cities including Henan, Hubei, Anhui, Qingdao, Zhejiang, and Jiangsu. The relevant person in charge of China UnionPay said that next, on the basis of continuously improving the UnionPay card acceptance network in rural areas, it will continue to increase innovation in agriculture-related products and services, expand the scope of use, enrich the connotation of services, and enable UnionPay cards to better serve “agriculture, rural areas, and farmers.”
This pilot targets fund collection and payment in the process of buying and selling agricultural products. Compared with traditional bank card payments, after this function is loaded, it can realize fund transfers between any UnionPay debit cards, and has the characteristics of real-time arrival, safety and reliability, and mobile portability. As of the end of October, the pilot transaction volume had exceeded 130 billion yuan, and it is expected to approach 200 billion yuan for the whole year.
Data show that during the “Twelfth Five-Year Plan” period, grain output increased year after year, and in 2014 the national total grain output exceeded 1.2 trillion jin. The huge agricultural product market has pushed up demand for procurement settlement payments and is developing in a more personalized direction. Generally speaking, agricultural product procurement is carried out by agricultural product brokers purchasing from farmers, and then the national grain reserve depots or agricultural product processing enterprises purchase from the agricultural product brokers. “All parties to the procurement transaction, especially ordinary farmers, hope that fund collection and payment will be convenient, efficient, and easy to operate, and they also want fund transfers to be ‘seeing is believing’ before they can feel at ease.” said the relevant person in charge of China UnionPay’s agricultural assistance services.
Previously, grain procurement enterprises mostly used cash payments when carrying out grain procurement. Because the amounts were relatively large, they not only had to assign special personnel to escort the cash every day, but were also prone to risk incidents such as lost payments, counterfeit banknotes, and robbery. After selling grain, farmers and agricultural product brokers also had to go to the bank to deposit the grain payments they received, which also brought them a lot of trouble. Compared with online banking, the advantage of UnionPay card agricultural product procurement payment is that cross-bank real-time transactions can be made 365 days a year, 7 by 24 hours.
What connects farmers, agricultural product brokers, and procurement enterprises is a palm-sized mobile POS machine. Agricultural product brokers and procurement enterprises can complete procurement payments anytime and anywhere by carrying a mobile POS machine. At Heilongjiang large grain processing enterprise Xiangyu Agricultural Products Company, cart after cart of golden corn, after testing, weighing, and impurity removal, is loaded through conveyor belts into newly vacated warehouses. After warehousing, Xiangyu Company staff took out a mobile POS machine, swiped a UnionPay card, and transferred the grain payment to the grain-selling broker’s UnionPay card. Farmers engaged in planting and breeding only need to carry their own debit cards, and after completing the procurement settlement, the funds are credited to this card in real time. If they are not reassured, they can also check the balance through the POS machine. The relevant person in charge of China UnionPay’s agricultural assistance services introduced that face-to-face card-to-card transfers, with transaction receipts in hand, are especially in line with the payment habits of farmer friends.
As the country’s largest grain-producing province, in the first 10 months of this year, Heilongjiang’s pilot UnionPay card agricultural product procurement payment business accounted for as much as 20% of the province’s total cross-bank bank card transaction volume. In Jilin, UnionPay card agricultural product procurement payment has extended from grain procurement to the procurement of local specialty native products and livestock. In the first 10 months of this year, Jilin’s UnionPay card agricultural product procurement transaction volume reached 4 billion yuan, accounting for more than 85% of the local market share.
In addition to Heilongjiang and Jilin, at present, the first batch of pilot UnionPay card agricultural product procurement payment services has been rolled out in more than 10 provinces and cities including Henan, Hubei, Anhui, Qingdao, Zhejiang, and Jiangsu. The relevant person in charge of China UnionPay said that next, on the basis of continuously improving the UnionPay card acceptance network in rural areas, it will continue to increase innovation in agriculture-related products and services, expand the scope of use, enrich the connotation of services, and enable UnionPay cards to better serve “agriculture, rural areas, and farmers.”