#None #UnionPay #QR Payment #China Indonesia

UnionPay's Cross-Border QR Payment Linkage: A New Era in Mobile Transactions

On September 11, 2025, UnionPay International (UPI), in conjunction with its partners, proudly announced the initiation of a pilot program aimed at establishing a cross-border QR payment linkage between China and Indonesia. This significant step, overseen by the respective central banks of both nations, marks a vital advancement in the evolution of mobile payment solutions and international transactions.

The Launch Event

The launch ceremony held in Beijing showcased a real-life demonstration of a transaction via an Indonesian mobile payment application. Simultaneously, in Jakarta, select users were able to successfully complete payments through both the UnionPay App and Alipay, utilizing QRIS, Indonesia's unified QR code standard. This sandbox phase currently allows selected users from mainland China to conduct QR payments at over 40 million QRIS-enabled merchants in Indonesia. Conversely, chosen merchants within the UnionPay and Alipay networks throughout mainland China are now equipped to accept payments initiated from 22 widely-used Indonesian mobile payment applications.

Limited Access but Expanding Opportunities

It is crucial to note that, during the sandbox period, participation is restricted to whitelisted users and specific merchants. This arrangement serves not only to refine the process but also to test the efficiency and viability of the cross-border linkage prior to its expected full operation later in 2025.

Moving Towards Operational Efficiency

The cross-border QR payment linkage is a key initiative designed under the Government-to-Government (G2G) model, reflecting the collaborative spirit between China and Indonesia. Prior to this event, in January 2025, UPI entered into a memorandum of understanding with the Indonesian Payment System Association (ASPI), Ant International, and the Bank of China (Hong Kong) Jakarta Branch. These agreements were vital in laying the groundwork for close collaboration, leading to the establishment of separate cooperation agreements with four of Indonesia’s key switch networks: Rintis, ALTO, Artajasa, and Jalin, along with partnerships involving Ant International and Alipay.

Financial Settlements in Local Currencies

One of the most notable aspects of the cross-border payment linkage is the provision for transactions to be settled in local currencies. This innovative approach is set to streamline mobile payment experiences for individuals in both countries, while simultaneously offering merchants a broader reach to attract customers from neighboring regions. The integration supports the vision of enhancing the domestic payment landscape while further promoting international commerce.

UnionPay's Ambitious Vision

This project not only signifies a significant milestone for UnionPay in fostering a productive four-party collaborative model involving various industry stakeholders but also showcases its commitment to extending its reach across the global payment chain. UnionPay is poised to drive meaningful cooperation within the payment sector while simultaneously catalyzing its own growth trajectory. Currently, UnionPay has successfully initiated or is in the process of pursuing similar cross-border QR payment linkages with networks in 19 countries and regions, emphasizing its dedication to advancing global payment connectivity.

Conclusion

As the pilot progresses, UnionPay's transformative approach to cross-border payments is indicative of an emerging trend in financial technology that prioritizes accessibility and international reach. This initiative promises to simplify transactions for travelers and residents alike, symbolizing a step forward in the digital payment revolution between the markets of China and Indonesia. The anticipated full-scale implementation later in 2025 will not only redefine how payments are conducted across borders but will also set a new benchmark for future collaborations in the realm of mobile financing.