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

As the World Economic Forum convenes in Davos under the theme "A Spirit of Dialogue," leaders in politics and business are faced with pressing questions about global trade amidst geopolitical uncertainty. The movement of people, commerce, and capital remains crucial, especially as the International Monetary Fund warns of moderating economic growth in 2026. With developed economies encountering structural challenges and emerging markets struggling with high financing costs, the need for effective payment solutions becomes paramount.

UnionPay, one of the world's major card payment organizations, is stepping up its efforts to strengthen cross-border network connectivity. Rather than solely serving as a global payment service provider, UnionPay is focused on creating a more inclusive international payments ecosystem. This is achieved through multilateral collaboration, interoperability, and shared value. Moreover, the organization is dedicated to responsibly leveraging digital technologies, particularly artificial intelligence, to enhance payment efficiency, security, and financial inclusion.

UnionPay's reach spans an impressive 84 countries and regions, with a network accepted in 183 locations worldwide. The organization has partnered with over 2,600 financial institutions and payment stakeholders, launching digital payment products and services tailored to local market needs, thereby boosting commerce and consumer activity across various contexts. Dong Junfeng, the Chairman of China UnionPay and UnionPay International, outlined their vision during a discussion at the World Economic Forum, emphasizing how UnionPay’s evolution mirrors China’s path of economic resilience and broader market opening.

Advancing Cross-Border Payments with the New Four-Party Model

A significant challenge in scaling cross-border payments lies in creating sustainable cooperation models. UnionPay has developed the "New Four-Party Model" to modernize the digital payment landscape. This model enhances cross-border cooperation by incorporating diverse participants into the traditional payment framework, including digital wallets and mobile manufacturers on the account side, as well as payment service providers and software-as-a-service platforms on the acceptance side.

This collaborative approach aims to leverage high-quality resources, lower cross-border cost barriers, and facilitate network expansion. UnionPay has successfully implemented this model across key emerging markets such as Southeast Asia, Central Asia, the Middle East, Africa, and Latin America, where it enhances the interoperability of cross-border QR code payment networks. Notably, this model respects local payment systems and regulatory frameworks, encouraging mutual recognition and integrated network growth, which is vital for enhancing payment systems in these regions.

By doing so, UnionPay connects millions of micro, small, and medium-sized enterprises to its inclusive global network, granting access to international consumers and cross-border commercial opportunities.

Harnessing AI for Payment Innovations

Artificial intelligence featured prominently in discussions at Davos, particularly regarding its transformative impact across economic sectors. In the realm of payments, UnionPay emerges as a leader in utilizing AI to balance innovation and risk management—an essential task given the need for security and compliance in the financial sector.

UnionPay has adopted a collaborative approach, teaming up with technology firms, research entities, and academic institutions to build a cooperative AI application ecosystem that promotes intelligent upgrades in its payment services. Its intelligent risk control system notably enhances transaction protection efficiency and effectiveness, achieving an impressive 85% accuracy in AI-generated risk assessments.

Moreover, UnionPay's MCP Agent Payment Service exemplifies its innovative spirit, enabling conversational user interfaces to facilitate the payment process seamlessly. With efforts to bolster tourism, especially as China extends its visa-free travel offerings, UnionPay has launched the