#China #Shanghai #UnionPay #Cross-Border Payments #Payment Gateway

UnionPay International Drives Global Interoperability through New Payment Gateway

On September 16, UnionPay International announced the official pilot launch of its Chinese Cross-Border Payment Gateway (CPG), which occurred at the end of July. This innovative system has been meticulously crafted over the past six months, aiming to facilitate seamless cross-border transactions using QR codes through a single access point. The CPG's user-friendly infrastructure not only enables entities from mainland China and abroad to easily execute cross-border payments, but it also bolsters transaction monitoring and analysis in real-time.

The CPG's implementation represents a significant milestone in providing convenient access for both Chinese and international partners. Entities operating in mainland China can integrate directly via UnionPay's standardized interfaces, while international partners can connect through UnionPay International. This structure enhances cross-border payment capabilities not just between China and the rest of the world, but also enables local QR payment transactions in markets outside of China, facilitating trade between these regions.

By leveraging a single entry point via UnionPay, CPG offers four main benefits to its partners. First, it significantly reduces system integration costs and curtails redundant modifications. Second, it promotes unified collaboration standards among foreign payment wallets, ensuring efficiency and a superior user experience when entering the payment market in China. This, in turn, fosters fair competition and the healthy development of a global ecosystem for QR code cross-border payments.

Third, foreign wallet providers can expect broader acceptance within mainland China; in addition to UnionPay's network, merchants using WeChat Pay QR codes will also accommodate transactions from these wallets. Fourth, CPG employs a unified information interface for both incoming transactions from foreign wallets and outgoing payments from Chinese wallets, centralizing cross-border payments management via QR codes and enhancing market participants' ability to provide secure and reliable services.

Collaboration with UnionPay provides foreign wallet operators with valuable opportunities in two key areas. On one hand, they can extend mobile payment services across a wide array of scenarios thanks to UnionPay's integrated solution that supports OEM Pay, QR code payments, and in-app transactions. Conversely, they can leverage the advantages tailored to UnionPay cardholders, alongside additional services designed for specific applications, thereby boosting user engagement.

As a principal architect of the CPG, UnionPay has persistently advanced QR code interoperability through comprehensive services and ecosystem development. Within mainland China, efforts under the Excellence Project have been amplified, continuously improving payment conditions for international visitors. As of August, this initiative encompassed 1.35 million trade points in major scenarios, 232 payment products utilizing aggregated QR codes that support foreign wallets, and 168 prominent e-commerce merchants accepting UnionPay cards issued outside of mainland China. This framework establishes a robust foundation for a more integrated and convenient payment ecosystem domestically.

Statistics reveal a remarkable year-on-year growth in transactions conducted in mainland China using UnionPay cards issued overseas or via UnionPay's foreign partner wallets, with the number of transactions increasing by 111% and their total value by 29%.

Internationally, UnionPay is facilitating QR code payment interoperability through two concurrent models: government-to-government (G2G) and network-to-network (N2N) collaborations. So far, UnionPay has launched or is involved in 19 interoperability projects with partners in 19 countries, including Vietnam, Indonesia, Cambodia, and Argentina. Consequently, over 11 million foreign trade points are now accepting QR code payments via UnionPay, with this number projected to reach tens of millions by year-end. Additionally, more than 170 foreign QR code payment wallets have been integrated into the UnionPay network across 30 countries and regions beyond mainland China.

Official data confirms the rapid progression of the CPG; as of September 11, the gateway has processed nearly 1.98 million transactions worth 427 million RMB. As China expands its visa-free entry policies and UnionPay continues to enhance CPG infrastructure, this solution is set to play a pivotal role in stimulating inbound consumption growth, facilitating global travel and economic exchange, and underscoring the CPG's foundation in international payment interoperability.