The largest company in the world providing debit and credit cards, UnionPay has recently announced that it will be supporting cryptocurrency for payments by using a virtual card developed by Danal. Danal is a South Korean firm that provides payment solutions and also has a cryptocurrency called Paycoin. The company will be facilitating UnionPay in processing cryptocurrency transactions using Paycoin via the virtual card that will be launched later in the current year. The news came from South China Morning Post which said that the virtual card will be available as an option in their Paycoin wallets.
This will allow the users of Paycoin to access more than 30 million merchants worldwide that support payments via the UnionPay platform. The UnionPay service works in 179 countries which also includes the largest of them all, China. Users will be able to top up the card using either fiat currencies or digital currencies. The foundation of Paycoin is HyperLedger, a Linux-based blockchain system, and was launched only last year. The currency is not globally used and is primarily present in South Korean markets only. However, users can purchase them in multiple exchanges and brokers which include Plus500, AvaTrade, CoinOne, Huobi, and UpBit. The app did, however, introduce a global version of the app last month and a representative from Danal said that it is “on the way to making its service accessible globally,”
As for the transactions that will happen on the card, an employee of UnionPay said that “Danal users will top up the virtual card using South Korean Won and pay with local currency. The clearing between Danal and UnionPay will be in US dollars.” He also added that “UnionPay’s partnership with Danal doesn’t involve any digital currency transactions.” Cryptocurrencies are clearly becoming the payment channel of choice for merchants and users quite quickly. Between PayPal offering cryptocurrency purchasing to its users and companies like UnionPay taking bold steps to expand into this area, it will become a race for securing a large customer base quite quickly.
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