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UnionPay Unveils Open Protocol Framework for Payments

On April 2nd, a special taxi booking was successfully completed in Hong Kong, China. A tester inputted booking information into an AI assistant developed by Evonet, instantly receiving a list of available taxi types and their prices from the ride-hailing platform Hoppa, along with a recommended booking option.

As a global card system, UnionPay officially launched the "Agentic Payment Open Protocol (APOP) Framework," which leverages the company's platform capabilities and neutrality in the field of agent-based payments. This innovative framework is aimed at creating a unified trust mechanism and interaction paradigm for agent-based payments.

Core Functions of the APOP Framework

The APOP Framework is designed to support a trust mechanism that interacts seamlessly among various participants in the agent-based payment ecosystem, including agents, merchants, financial institutions, and technology platforms. Its four core functions include:

1. Lifecycle Management of Agent Identity: This function manages the entire lifecycle of agent identities, from registration to information updates and deregistration. It ensures that the identities of agents are secured and maintained throughout their participation.

2. Intent-Based Trust Mechanism: By implementing comprehensive intent management that encompasses generation, registration, and verification, the framework establishes a trust mechanism based on user intentions. This aims to enhance security and reliability for all parties involved, creating a more trustworthy environment for payments.

3. Optimized User Identity Management: The framework allows for Single Sign-On (SSO) between participants like agents, merchants, and financial institutions, enabling them to share login credentials securely while maintaining privacy and security.

4. Comprehensive Payment Authorization Services: The APOP framework provides a wide array of payment authorization services, including activation authentication for agent-based payments, payment debit functionalities, and verification of user consent.

Collaborative Efforts Towards a Secure Payment Ecosystem

The APOP framework is built upon principles of openness and interoperability. It seeks to develop industry-wide standards while fostering an inclusive framework that ensures interoperability between institutions, platforms, and applications, both within and outside of mainland China.

In addition, four essential principles guide the development of the APOP framework:

• - Compliance and Controllability: Agent payments need to comply with existing regulatory requirements to ensure that the business framework aligns with evolving regulatory trends.
• - Security as a Priority: The framework guarantees the traceability and accountability of agent payment processes through robust identity verification and intent management mechanisms.
• - Enhanced Trust: Clear definitions of responsibilities, rights, and risks for all participants create a solid foundation for dispute resolution.
• - Wide Compatibility: Multiple access solutions are provided to enable participants to integrate into the ecosystem in a cost-effective manner while maintaining high scalability.

According to Dong Junfeng, Chairman of China UnionPay, the company remains committed to its vision of "Trustworthy Connections, Shared Success" and will work closely with industry partners to harness the transformative opportunities presented by AI. Leading a collaborative initiative, UnionPay aims to design a new standard for agent-based payments that is secure, controllable, inclusive, and efficient, marked by global connectivity, thereby elevating the payment industry to new heights in the AI era.