#AI #Switzerland #UnionPay #Cross-Border Payments #Davos

UnionPay's Innovative Approach to Cross-Border Payments at Davos 2026

As political and economic leaders gather for the 2026 World Economic Forum in Davos under the theme of "A Spirit of Dialogue," the pressing question arises: how can we ensure the mobility of people, trade, and capital flow remain efficient and resilient amidst increasing geopolitical uncertainty and pressures on global commerce and investments? This critical topic has garnered significant attention, especially given the International Monetary Fund's predictions of a slowdown in global economic growth for 2026.

UnionPay, one of the world's largest card payment organizations, is eager to address these challenges by focusing on cross-border network connectivity as a practical entry point. Rather than position itself merely as a global payment service provider, UnionPay is committed to innovation aimed at fostering an open and inclusive international payment ecosystem grounded in multilateral collaboration and shared values. Concurrently, the company is exploring the responsible deployment of digital technologies, including artificial intelligence (AI) within payment transactions, to find solutions that enhance efficiency, security, and financial inclusion.

Currently, UnionPay cards are issued in 84 countries and regions, with an acceptance network spanning 183 countries and regions globally. With partnerships with over 2,600 financial institutions and payment stakeholders worldwide, UnionPay has launched digital payment products and services tailored to local markets, supporting trade and consumption across different contexts.

Commitment to Responsible AI in Payments

AI emerged as a focal point of discussion in Davos, having the potential to redefine economic structures and growth models. However, within the payment sector, characterized by high security and compliance requirements, the challenge lies in harnessing these innovations while effectively managing associated risks. UnionPay positions itself as an application-oriented leader in the financial sector, viewing AI as a new productivity driver to support the intelligent modernization of payments. Rather than single-use applications, UnionPay adopts a collaborative strategy, partnering with tech firms, research institutes, and universities to construct a shared AI application ecosystem that supports high-quality and sustainable delivery in financial scenarios.

To ensure payment security, UnionPay has developed an intelligent risk control system that significantly enhances the timeliness and effectiveness of transaction protection. The accuracy rate of AI-generated expert risk rules now reaches an impressive 85%. Furthermore, in the field of agent-based payment solutions, UnionPay is a pioneer, with its MCP Agent Payment Service allowing users to complete their entire transaction process seamlessly through conversational interactions.

Transformational Four-Party Model

Scaling cross-border payments requires more than just technical integration; it hinges on sustainable and reproducible cooperation models. In recent years, UnionPay has established a "new Four-Party Model" for the digital payment age through Network-to-Network (N2N) and Government-to-Government (G2G) collaborations. Building on the traditional four-party payment model, this new framework broadens participation from both sides of the ecosystem, incorporating digital wallets and mobile device manufacturers on the account side, and integrating payment service providers, payment aggregators, and SaaS platforms on the acceptance side. Through bilateral and multilateral collaboration, the model aims to integrate quality resources, reduce costs associated with cross-border cooperation, and accelerate network expansion.

This approach has been implemented in Southeast Asia, Central Asia, the Middle East, Africa, and Latin America—crucial emerging markets—encouraging interoperability among cross-border QR code payment networks. It’s important to emphasize that this model is not intended to replace local payment systems. Rather, it operates within existing regulatory frameworks, promoting standard mutual recognition and coordinated network development while supporting local efforts to enhance the payment infrastructure. The outcome is that millions of micro-merchants and small to medium-sized enterprises worldwide are now connected to UnionPay's global network, gaining improved access to international consumers and cross-border business opportunities.

Long-term Value Creation in Cross-Border Payments

UnionPay's operations reflect the spirit of dialogue represented at Davos by working collaboratively with local payment systems across various markets. The aim is not to impose a uniform model or standard but rather to find commonalities amidst diversity and creatively build a more open and inclusive global payment ecosystem. By improving the efficiency of cross-border payments and reducing transaction costs, UnionPay supports the regional economic cycle, enabling wider participation from small and medium players, especially in emerging markets. This collaboration-centric approach, beneficial for all stakeholders, closely aligns with the values reiterated by the World Economic Forum during these uncertain times.

Looking forward, UnionPay will continue leveraging connectivity to deepen multilateral collaboration, contributing to a more open, inclusive, and sustainable international payment ecosystem, steadfast in its vision of fostering trustworthy relationships and collective success.