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China and Indonesia Team Up on Cross-Border Digital Payments

Published: Jan. 22, 2025 8:26 p.m. GMT+8

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The agreement is just the latest deal of its kind that UnionPay International has made with a Southeast Asian country. Photo: UnionPay International

UnionPay International Co. Ltd. has joined forces with the Indonesia Payment System Association (ASPI) to make their separate QR code payment systems work together, marking its latest effort to remove obstacles that hamper cross-border digital payments between China and Southeast Asia.

The collaboration aims to ensure that Chinese visitors to Indonesia will be able to pay with UnionPay-supported online payment services by scanning QR codes under Indonesian standards, and vice versa.

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UnionPay International and the Indonesia Payment System Association are collaborating to integrate their QR code payment systems for seamless cross-border transactions between China and Indonesia.
The partnership involves Ant Group's Alipay+ platform and Bank of China (Hong Kong), utilizing a four-party model for transparency and reduced fraud risks.
Similar agreements have been established in Vietnam, Laos, Malaysia, and Cambodia, enhancing cross-border payments in Southeast Asia.

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Who’s Who

UnionPay International: UnionPay International Co. Ltd. is partnering with the Indonesia Payment System Association to integrate their QR code payment systems, enhancing cross-border digital payments between China and Southeast Asia. This collaboration includes Ant Group's Alipay+ and Bank of China (Hong Kong)'s Jakarta branch, marking UnionPay's ongoing efforts to facilitate mutual QR payments in Southeast Asia, aligning with the global four-party payment model to enhance transparency and reduce financial risks.

Ant Group: Ant Group, a fintech giant affiliated with Alibaba, is involved in the partnership through its subsidiary Ant International, which operates the cross-border Alipay+ platform. In the collaboration with UnionPay and the Indonesia Payment System Association, Ant International acts as a technology service provider. The agreement aligns Alipay's offshore cross-border payments with the four-party international model, aiming to enhance transparency and reduce risks previously associated with direct settlements with individual banks.

Alibaba Group Holding: Alibaba Group Holding Ltd. is affiliated with Ant Group Co. Ltd., the fintech giant involved in the partnership between UnionPay International and Indonesia's ASPI. Ant Group's international arm participates in the collaboration through its cross-border Alipay+ platform, serving as a technology service provider. This reflects Alibaba's broader involvement in facilitating digital and cross-border payment solutions.

Bank of China (Hong Kong): Bank of China (Hong Kong) Ltd.'s Jakarta branch is participating in the collaboration between UnionPay International and the Indonesia Payment System Association. It is involved as a bilateral local currency settlement partner, facilitating cross-border digital payments between China and Indonesia. This role is part of a broader effort to improve payment interoperability and support small and midsize businesses in both countries.

China UnionPay: China UnionPay Co. Ltd. is the largest payment settlement service provider in China and the parent company of UnionPay International. It collaborates with international partners, like the Indonesia Payment System Association, to enhance cross-border digital payments, particularly between China and Southeast Asia. The company is part of initiatives that align with the global payment industry's trends, transitioning to the "four-party model" for greater transparency and reduced risk.

Ant International: Ant International, a subsidiary of Ant Group, operates the cross-border Alipay+ platform. In the collaboration between UnionPay International and the Indonesia Payment System Association, Ant International will participate as a technology service provider, facilitating QR code payments between China and Indonesia. This partnership aligns with the prevalent “four-party model” for international transactions, moving away from Alipay's previous closed-loop system to offer more transparency and reduced risk of fraud and money laundering.

AI generated, for reference only