Chinese payment system China UnionPay is preparing to enter into the European market: the payment giant plans to issue cards in UK as soon as in October, while the date for other European countries is set at December.

This could be the first sign of the Chinese company’s expansion into Europe and growing competition with Visa and MasterCard, Kommersant reports citing Financial Times.

UnionPay is going to issue virtual prepaid cards for corporate clients in October. The staffers of British companies holding these cards can use them during trips to Asia.

“In Europe we want to target local customers in the domestic market, not only people travelling to Asia. And the company does not need a  license for European expansion plan as the cards will be issued by third parties, such as banks, and its transactions will be handled by payment processing groups,” said Zhihong Wei, head of UnionPay in Europe.

“UnionPay’s decision to expand to Europe is also a reflection of the growing competition in the Chinse market, where Alipay and WeChat Pay has dislodged UnionPay from its dominant position in electronic payments,” writes Kommersant.

UnionPay has been expanding globally for the last few years, but they were mainly targeting other Asian countries, particularly Japan and Myanmar.

The Chinese company already has offices in Paris, London, Madrid, Milan, Frankfurt and Budapest, with another set to open in Stockholm as well.

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