#China #Beijing #Indonesia #UnionPay #QR Codes

Introduction

In a groundbreaking initiative to streamline transactions between nations, UnionPay International (UPI), in conjunction with local partners, has launched a pilot scheme for cross-border payments via QR codes between China and Indonesia. Announced on September 11, 2025, this project marks a significant milestone in enhancing mobile payment options for citizens and businesses in both countries.

Details of the Project

The official launch event took place in Beijing, where a sample transaction was conducted using an Indonesian mobile payment application. Concurrently, users in Jakarta executed successful payments through UnionPay and Alipay apps by scanning QRIS, Indonesia's unified QR code system. This pilot phase enables select users from mainland China to make payments at over 40 million merchants utilizing QRIS across Indonesia. In turn, pilots in Chinese merchant networks from UnionPay and Alipay can also accept payments via QR codes from 22 primary Indonesian mobile payment platforms.

It is essential to note that the testing stage is currently limited to whitelisted participants and merchants. Full-scale functionality of the cross-border QR code payment system is expected by the end of 2025 upon completing the testing phase.

Background and Strategic Partnerships

This cross-border payment initiative is a key project undertaken by China and Indonesia under a government-to-government (G2G) framework. Progressing steadily under the supervision of both central banks, UPI entered into a collaboration memorandum with the Indonesian Payment Systems Association (ASPI), Ant International, and a branch of Bank of China (Hong Kong) in Jakarta back in January 2025. Subsequently, UPI also signed distinct cooperation agreements with four transaction networks in Indonesia—Rintis, ALTO, Artajasa, and Jalin—as well as with Ant International and Alipay to accelerate the project's implementation.

Benefits for Consumers and Merchants

According to the agreement between the two central banks, these cross-border QR code payments between China and Indonesia will be processed in their respective local currencies. This arrangement not only simplifies cross-border mobile payments for individuals in both nations but also allows merchants to expand their customer base significantly. This initiative plays a pivotal role in UPI's ambition to create a new quadrilateral cooperation model among industry stakeholders, where UPI continues to occupy a vital position in expanding collaboration across the entire sector. This is aimed at fostering mutually beneficial relationships while promoting domestic growth.

Future Prospects

To date, UnionPay has made headway in establishing cross-border QR code payment connections with payment networks in 19 countries and regions outside of mainland China. The organization is focused on broadening its cross-border payment connectivity, supporting an evolving marketplace where digital transactions and mobile payments are becoming the norm.

As technology continues to drive the finance sector, the potential for innovative platforms like these to enhance economic interaction between countries cannot be understated. UPI’s initiative serves as a model for leveraged technology in improving financial cooperation internationally, marking a brave new dawn for payment processing in an increasingly interconnected world.

Conclusion

This pilot project is much more than a mere transactional experiment; it signifies a deeper commitment to international collaboration and innovation in the field of payments. In a world swiftly gravitating towards digital solutions, UnionPay's efforts reflect a proactive response to contemporary payment challenges faced by consumers and businesses alike, paving the way for a future where seamless cross-border payments become a reality.