#China #Shanghai #UnionPay #Cross-Border #QR-code

UnionPay International Advances Global Payment Interoperability

On September 16, 2025, it was announced that UnionPay International has officially launched the Cross-border Interconnection Gateway (CPG) in China, which commenced trial operations at the end of July. UnionPay has played a crucial role in developing key components of the CPG over the past six months, reflecting its commitment to inclusivity and accessibility in payment systems.

The CPG is designed to streamline cross-border QR code payment processes for institutions both within and outside of mainland China. It provides a unified access point, enabling users around the world to conduct transactions efficiently and safely. Key features of the CPG include standardized technical interfaces, real-time transaction information processing, and analytics services, aimed at facilitating seamless cross-border QR code payments.

Benefits for Institutions and Users

With the initiation of the pilot phase, both Chinese and international partners gain straightforward access to this innovative payment solution. Institutions on the Chinese mainland can integrate directly using UnionPay's standardized interfaces, while international partners can connect through UnionPay International. This set-up not only eases the transaction processes between mainland China and the globe but also allows local QR code payments in markets outside of China, creating a more versatile payment ecosystem.

UnionPay's CPG onboarding, through a single access point, presents four key advantages for implementing cross-border QR code connections:
1. Reduced Costs: By minimizing the need for multiple system integrations, it decreases costs and resource wastage associated with repeated system updates.
2. Unified Standards: It establishes uniform standards for collaboration with foreign wallet providers, enhancing efficiency and user experience when accessing the Chinese payment market, which encourages fair competition and healthy growth in global cross-border QR code payment ecosystems.
3. Broader Acceptance: International wallets can gain wider acceptance on the Chinese mainland, including capabilities to accept payments from WeChat Pay QR code merchants.
4. Centralized Management: The CPG adopts a standardized information interface for incoming payments from foreign wallets and outgoing transactions from Chinese wallets, facilitating centralized management and supporting institutions in delivering safer services to users globally.

Adding Value to Foreign Wallet Operators

By collaborating with UnionPay, foreign wallet operators can unlock new avenues for value addition. They can leverage UnionPay's integrated wallet payment solution, encompassing OEM Pay, QR code, and in-app payments, to enhance mobile payment functionality in diverse use cases. Additionally, they can benefit from using the global partner network that UnionPay offers.

UnionPay has been a pivotal developer of the CPG. In recent years, it has prioritized QR code interoperability through a comprehensive service approach and ecosystem development. As of August this year, UnionPay's Project Excellence emerged as a major initiative, enhancing payment services for international visitors in China. Notably, it includes 1.35 million merchants across key sectors, with 232 aggregated QR code products accepting foreign wallet payments and 168 major online retailers accepting UnionPay cards issued outside of China, thus laying the groundwork for a unified and user-friendly payment ecosystem in China.

Data indicates that transactions conducted on the Chinese mainland using UnionPay cards or international partner wallets saw a staggering 111% increase in volume and a 29% increase in value year-on-year.

On a global scale, UnionPay is advancing QR code interoperability through two concurrent models – the Government-to-Government (G2G) and Network-to-Network (N2N) models. So far, 19 interoperability projects involving partners from 19 countries, including Vietnam, Indonesia, Cambodia, and Argentina, have been initiated. Consequently, over 11 million merchants globally now accept payments via UnionPay QR codes, with projections estimating this number will significantly increase by the year’s end. The network has also incorporated over 170 foreign QR code payment wallets across 30 countries and regions outside of mainland China.

Official reports reiterate the rapid adoption of the CPG, with nearly 1.981 million transactions worth 427 million RMB processed by September 11. As China continues to expand visa-free entry measures, UnionPay's ongoing contributions to the CPG infrastructure are poised to play a crucial role in unlocking opportunities for inbound consumer growth, facilitating global travel and business exchanges, and solidifying the CPG's status as a cornerstone of international payment interoperability.