#China #Shanghai #QR Code #UnionPay #Cross-Border Payments

UnionPay International Enhances Global Payment Interoperability

In a significant step towards global payment integration, UnionPay International has announced the commencement of its Chinese Cross-Border Payment Gateway (CPG) testing operations, which officially launched in late July. This new initiative signals a commitment to improving transaction capabilities for cross-border payments, making them more efficient, secure, and user-friendly for consumers globally.

The CPG enables institutions both within mainland China and abroad to achieve seamless cross-border interoperability using QR codes through a unified access point. This system facilitates various services including standardized technical interfaces, transaction switching, information sharing related to cross-border transactions, and real-time monitoring and analysis of these transactions. Furthermore, the solution aims to streamline the process for entities involved, making QR code-based payments more accessible and convenient for users around the world.

The pilot program offers an easily navigable approach for partners in China and internationally. Mainland Chinese institutions can integrate directly with UnionPay's standardized interfaces, while foreign partners can engage with the CPG through UnionPay International. This connection not only simplifies cross-border QR code payment processes between China and other countries but also opens the opportunity for localized QR code payments in markets outside mainland China and between various international markets.

UnionPay International has outlined four key benefits for partners utilizing the CPG for cross-border QR code connections. Firstly, it reduces system integration costs and minimizes resource wastage from redundant system alterations. Secondly, it supports unified standards for collaboration with foreign wallet providers, thereby enhancing efficiency and improving the user experience for foreign partners entering the Chinese payment market. This approach ensures fair competition and nurtures healthy growth within the global cross-border QR payment ecosystem. Thirdly, foreign wallets will achieve greater acceptance coverage within mainland China. Besides being accepted by UnionPay's network, merchants using WeChat Pay will also process payments from these wallets. Finally, CPG employs a unified information interface for incoming payments from foreign wallets and outgoing transactions from Chinese wallets, enabling centralized management of cross-border payments via QR codes, facilitating safer and more reliable service provision for users worldwide.

Through collaboration with UnionPay, foreign wallet operators stand to gain enhancements on two fronts. On one side, thanks to a comprehensive wallet payment solution offered by UnionPay, they can provide multi-use mobile payment options that encompass OEM payments, QR code payments, and in-app payments. Additionally, they can leverage UnionPay's extensive global partner network. On the other hand, they can also capitalize on UnionPay’s card services and value-added offerings to boost user engagement further.

UnionPay has been a key player in consumer product development, enhancing QR code interoperability through comprehensive services and ecosystem enhancement. In mainland China, recent efforts have intensified to improve payment services for international visitors, extending coverage to approximately 1.35 million merchants in significant use cases, with 232 aggregated products allowing payments via foreign wallets and 168 major online merchants accepting UnionPay cards issued outside mainland China. The groundwork for creating a unified and more convenient payment ecosystem within China has thus been firmly established. Notably, transactions conducted in mainland China using UnionPay cards issued abroad or international UnionPay wallet partners have seen a significant yearly rise — with a 111% increase in volume and a 29% surge in value.

On the international front, UnionPay has actively supported cross-border QR interoperability through two cooperative models: Government-to-Government (G2G) and Network-to-Network (N2N). To date, UnionPay has launched or is engaged in 19 interoperability projects with partners across 19 countries, including Vietnam, Indonesia, Cambodia, and Argentina. As a result, over 11 million foreign merchants currently accept UnionPay QR code payments, a figure expected to rise to tens of millions by the end of the year. Moreover, more than 170 foreign QR code payment wallets have been integrated into the UnionPay network, covering 30 countries and regions outside mainland China.

Recent statistics underscore the rapid growth of the CPG, with 1.981 million transactions processed, accumulating a total of 427 million RMB worth of payments by September 11 alone. As China continues to expand its visa-free travel policies, UnionPay's diligent efforts towards enhancing the CPG infrastructure is crucial for unlocking consumer spending potential abroad, facilitating global travel and trade exchanges, and solidifying the CPG's role as a cornerstone of international payment interoperability.