Visa has struck a new deal with China UnionPay through a memorandum of understanding to collaborate on three key areas in the financial ecosystem: payments security, innovation and financial inclusion.
The deal, which was signed by Shi Wenchao, President of China UnionPay, and Visa CEO Charlie Scharf, aims to provide a platform for the two payments networks to come together to “strengthen and create new value for the bank card ecosystem benefiting consumers, merchants, financial institutions and technology partners,” according to a release on the agreement.
The companies will specifically tailor that collaboration to the three areas mentioned above.
“Visa is delighted to have concluded this MOU with CUP. This is a unique collaboration between two leading industry players to address major challenges facing the payments industry,” Scharf said. “We are excited to be working together on innovation as digital payments transform commerce, resulting in safer, faster and more convenient ways for consumers to pay. Innovation will also play an important role in our joint efforts to expand access to financial services for the underserved. The global payments industry will benefit from these efforts.”
China UnionPay operates China’s national inter-bank clearing and settlement system, develops the worldwide UnionPay Card acceptance network, and promotes the issuance and usage of the UnionPay Card. The total number of UnionPay Cards issued both at home and abroad stands at over 5 billion.
Wenchao commented: “The MOU signing is the result of joint efforts by CUP and Visa, representing a new start to our win-win cooperation. As open payment networks, both companies follow the same business model, share the common interest of maintaining their brand rights and promote the core concept of open cooperation. The joint cooperation will have an important influence on the healthy development of the global payments industry, providing cardholders with more convenient, secure and highly efficient payment services.”
“CUP stays committed to the philosophy of openness and win-win cooperation,” he continued. “CUP is keen to actively cooperate with relevant parties to innovate and promote the orderly long-term development of the global payments industry, fully respecting the regulatory regime and industry consensus to underpin those efforts.”