News Release GIF
July 06, 2009

DNP Acquires China UnionPay Brand Card Manufacturing Certification
Response to Expansion into Asian Market of High Function Smart Cards
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Dai Nippon Printing Co., Ltd. (DNP) is pleased to announce that with effect June 15 the company has acquired card manufacturing certification from the China UnionPay brand. This latest accreditation follows those from Visa, MasterCard, JCB, American Express and Diners, and means the company is now certified to manufacture cards for all major six global payment brands.
Following the acquisition of this latest certification, DNP is in a position to manufacture UnionPay brand credit cards, debit cards and pre-paid cards. Starting with China, UnionPay cards are now used on a global basis. Magnetic type cards are in mainstream use at present, but a shift to high function services is expected in line with future market growth and improvements in security and convenience.
The DNP Ushiku Plant, in Ushiku City, Ibaraki has acquired manufacturing certification and has the capability to manufacture a variety of cards to match specific client needs, beginning with simple magnetic cards, all the way to high value added cards mounted with functions such as FeliCa chips. Looking forward, DNP will respond to new developments, such as mounting contactless IC chips, such as FeliCa on UnionPay brand credit cards, and promote business development with overseas transport organizations and financial institutions, mainly in Asia.
 
[Targeting Overseas Markets]
DNP will combine its contactless smart card technology, such as FeliCa chips, with UnionPay cards, and in addition to current settlement functions, will promote the expansion of a more convenient credit card business, with a higher value added quotient, by mounting such functions as transportation tickets, electronic money, memberships, and IDs on a single card.
As a result, given the expectation for the further expansion of UnionPay cards, mainly in Asia, and the outlook for major business opportunities, DNP will also look to strengthen its sales system in order to respond to increased demand for contactless smart cards from the Asian region, including China, Thailand and India, in addition to developing a manufacturing system following the acquisition of UnionPay card personalization certification.
 
[UnionPay Cards]
UnionPay card is a credit and debit card issued by China UnionPay which executes network settlements between Chinese domestic banks. Some 196 Chinese domestic banks have issued approximately 1.8 billion UnionPay cards, with a gross billing amount of about 4.6 RMB. The UnionPay card is accepted at 1.18 million domestic retail outlets and 170,000 ATMs, and can also be used in 61 nations and regions overseas. Member stores are also on the increase in Japan, where it is now possible to use UnionPay card at 12,000 stores and 50,000 ATMs.
UnionPay cards are forecast to see a further expansion in usage as a result of the increase in the numbers of Chinese travelling abroad, beginning with tourists and including business people, students and other travelers, and in line with the hosting of the 2010 Expo in Shanghai.
 
[DNP Smart Cards]
Since launching smart card research in 1981, DNP has successfully accumulated card manufacturing and personalization technology, development technology related to the software mounted on the smart cards, as well as network related technology and know-how, and now provides a variety of products and services designed to match client needs. DNP offers a broad product line up, from low price versions with reduced memory size and functions to multifunction smart cards, including those combining biometric authentication, electronic money, and ATM and credit functions. DNP is the number one Japanese smart card vendor, having successfully captured a share of approximately 40 percent of the domestic smart card market, and in particular, a share of approximately 90 percent of the smart card based ATM card market (based on numbers of financial institutions adopting DNP products and services). The company has also captured approximately 60 percent of the market for FeliCa format electronic money cards, which have been enjoying market expansion in line with their use in transport tickets and electronic money in recent years.
 
[Forward Looking Developments]
DNP will actively promote UnionPay cards to companies and organizations, including financial institutions, transport organizations and retailers considering the issue of, or tie ups with UnionPay cards, aiming for sales of 300 million yen from 1.0 million cards by March 31, 2013.
 
UnionPay card logo mark
 
* FeliCa is a contactless card technology developed by Sony Corporation
* FeliCa is a registered trademark of Sony Corporation
 
 
* Product price, specification and service content listed in this news release are as of time of going to press. This data may change without notice. We apologize for any inconvenience.
 
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