#AI Technology #UnionPay #Davos

UnionPay's Vision for Global Payments at Davos

The annual World Economic Forum held in Davos, Switzerland, has once again gathered leaders from various sectors under the theme of "A Spirit of Dialogue". This year, amidst rising geopolitical uncertainties and challenges in global trade and investment, a critical question emerges: how can the movement of people, capital, and commerce remain resilient and efficient?

According to the International Monetary Fund (IMF), global economic growth is projected to slow down in 2026. Advanced economies face structural hurdles, while emerging markets contend with increased financing costs and hurdles in cross-border transactions. In light of these shifts, traditional payment systems have become paramount in facilitating international economic activities.

One organization at the forefront of this transformation is UnionPay, one of the largest payment networks in the world. UnionPay is shifting focus from merely providing global payment services to creating an inclusive ecosystem for international payments. Their strategy emphasizes cross-border network connectivity rooted in multilateral collaboration, interoperability, and shared value. Moreover, they are exploring responsible uses of digital technologies, including artificial intelligence, to enhance payment efficiency, security, and financial inclusion.

As of now, UnionPay cards are issued across 84 countries and regions, boasting acceptance in 183 locations worldwide. Partnering with over 2,600 financial institutions and payment stakeholders globally, UnionPay has introduced a suite of digital payment products that cater to local markets, thus stimulating commerce and consumption.

UnionPay’s Practical Connectivity: A New Quadruple Model

To boost cross-border payments, UnionPay has developed an innovative “new quadruple model,” which integrates network-to-network (N2N) and government-to-government (G2G) cooperation. This model is an evolution of the traditional quadruple payment framework, designed to enhance participation in both sides of the payment ecosystem. By including digital wallets and device manufacturers on the account side, and payment service providers along with payment aggregators on the acceptance side, UnionPay aims to streamline resources for improved cross-border collaboration.

UnionPay's efforts in Southeast Asia, Central Asia, the Middle East, Africa, and Latin America illustrate the potential of this model, as it promotes interoperability among cross-border payment networks through QR codes. Importantly, this model is not intended to supplant local payment systems; instead, it complements existing regulatory frameworks. This strategic approach has connected millions of micro, small, and medium enterprises to UnionPay’s global network, allowing them access to international customers and cross-border business opportunities.

Embracing Responsible AI in Payments

Artificial intelligence has emerged as a hot topic at Davos, given its potential to redefine economic structures and growth models. In the payment sector, where security and compliance are paramount, the challenge lies in harnessing innovative AI solutions while effectively managing risks. UnionPay is positioning itself as a leader in this space, treating AI as a vital engine of productivity in financial applications. Instead of chasing isolated use cases, they are adopting a collaborative approach, partnering with tech firms, research institutions, and universities to build a shared AI application ecosystem that ensures sustainable, high-quality implementation in financial scenarios.

UnionPay is also pioneering intelligent risk control systems that enhance transaction protection's timeliness and efficiency. The expert risk rules generated by AI currently achieve an impressive accuracy rate of 85%. Additionally, their agent-based payment solutions enable users to complete transactions seamlessly through conversational interactions, exemplifying UnionPay’s innovative capabilities.

As China continues to expand its visa-free travel policies, UnionPay has leveraged AI to enhance services for incoming visitors. Their comprehensive digital platform, including the