DFPC taps UnionPay for rewards program

MANILA, Philippines — State-run Duty Free Philippines Corp. (DFPC) continues to capitalize on the growing Chinese tourist market as it partners with a payments provider for a rewards programs that may be availed in all DFPC stores.

DFPC and UnionPay International Co. Ltd. yesterday signed a memorandum of agreement (MOA) for a rewards program for UnionPay users that will offer discounts at all

DFPC stores, as part of UnionPay’s Global Shopping Fiesta campaign.

Under the MOA, all UnionPay credit, debit, and prepaid cards issued outside the Philippines will be entitled to rewards which include $50 off for every single receipt of $300 and above; $6 off for a single-time purchase of $200 to $299.99; $2 off for a single-time purchase of $100 to $199.99; and $1 off for a single-time purchase of less than $100.

The agreement was signed by DFPC chief operating officer Vicente Pelagio Angala and UnionPay International Southeast Asia general manager Wenhui Yang.

“As China becomes the biggest contributor to world tourism, we sincerely welcome and acknowledge this memorandum as a significant step forward,” Angala said.

“Duty Free Philippines shops have become a must-see destination for tourist during their travel and as we target to increase our market share, we make sure that we keep up with the trends in this fast-paced market to meet the needs of our customers,” he added.

China remained the country’s second largest source market from January to September this year with a total of 1.36 million arrivals,39.8 percent higher than the 972,500 Chinese arrivals a year ago.

“We are delighted to be partnering Duty Free Philippines once again to offer UnionPay cardholders one of the most attractive discounts at DFP stores nationwide. We at UnionPay are constantly looking at ways to enhance Cardholders’ payment experience by providing greater convenience, payment security and exclusive privileges,” Yang said.

“UnionPay now serves the world’s largest cardholder base of over eight billion cards worldwide and spending from Chinese tourists in the Philippines jumped 71 percent for the first 10 months in 2019, comparing the same period last year. I am optimistic that this partnership will spur spending especially during the year end peak travel season,” he added.

The promotion agreement with UnionPay will last for three months.

In line with targeting the Chinese tourist market, DFPC signed agreements with Wechat and Alipay to be the official mobile payment providers of DFPC stores last year.

DFP is the sole operator of duty and tax-free merchandising system in the Philippines. It operates duty and tax-free stores at international airports and seaports, selected hotels, tourist resorts, and commercial or trading centers throughout the country.

For this year, DFPC is targeting to hit $220 million worth of sales.

Last year, the company registered a two percent rise in total sales to $217 million from $213 million.

Based on data from DFPC’s Merchandising Division, Filipino tourists, balikbayans and OFWs remain the company’s top source market with $59.9 million of total transactions, followed by Americans ($4.9 million), Chinese ($1.5) million and Canadians ($1.1 million).

Angala earlier said he remains optimistic of hitting its $220 million sales target as it boosts its expansion initiatives this year.