UnionPay announced Friday (Oct. 14) it launched a chip card technology licensing cooperation with seven members of the Asian Payment Network (APN).
In a press release, UnionPay said this marks a new breakthrough in the “Going Global” of China’s financial technology standards. Major switch networks in Singapore, Thailand, South Korea, Malaysia, Indonesia and the Philippines will adopt the UnionPay chip card standard in card acceptance and issuance.
According to the company, UnionPay cards are now accepted in 160 countries and regions and issued in 40 countries and regions. While promoting cross-border businesses, UnionPay is also giving full play of its advantages in network, product, technology and standard to take part in financial infrastructure construction in markets outside of mainland China.
“China’s payment industry is developing rapidly and is playing an increasingly significant role in promoting eCommerce, enhancing financial inclusion, meeting consumers’ demands and fueling economic growth,” said Fan Yifei, vice president of the People’s Bank of China, in the press release. “APN members’ adoption of the UnionPay chip card standard means that UnionPay’s technology and service have been recognized by the international market.”
Composed of 13 switch networks in 11 Asia-Pacific countries, APN is aimed at realizing the interconnection among various payment networks in the region. In 2005, APN chose UnionPay as the sole provider of its cross-border chip card standard through competitive bidding. Now, its members will adopt the UnionPay chip card standard for all the APN brand cards it issues.
“This agreement signing is of great significance. First, it means that the cooperation between UnionPay and payment industries outside mainland China has upgraded from business cooperation to comprehensive partnership in product and standard. Second, it helps the payment industries in these markets upgrade and paves way for the rollout of UnionPay’s innovative payment products. Third, it helps enhance the competitiveness of China’s payment industry,” UnionPay said.