UnionPay Teams Up with Alipay+ and Indonesian Payment Firms to Establish a Cross-Border Payment Connectivity Four-Party Model (AI Translation)
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文｜财新 张宇哲
By Caixin's Zhang Yuzhe
【财新网】继2024年10月中国银联陆续与越南、老挝两国央行推动的跨境支付互联互通之后，中国银联在东南亚移动支付市场落地第三个国家层面的多边跨境二维码支付合作。
[Caixin Global] Following efforts in October 2024 by China UnionPay to promote cross-border payment connectivity with the central banks of Vietnam and Laos, China UnionPay has established a third country-level multilateral cross-border QR code payment cooperation in the Southeast Asian mobile payment market.
2025年1月20日，银联国际、印尼支付系统协会（ASPI）、蚂蚁国际、中银香港雅加达分行在上海联合宣布，将在中印（尼）两国央行指导下，共同推动两国跨境二维码互联互通，通过双向大规模开放二维码受理网络，提升两国人员跨境支付体验。
On January 20, 2025, UnionPay International, the Indonesia Payment System Association (ASPI), Ant Group International, and Bank of China Hong Kong Jakarta Branch jointly announced in Shanghai that, under the guidance of the central banks of China and Indonesia, they would work together to promote cross-border QR code interconnectivity between the two countries. By enabling extensive two-way access to QR code acceptance networks, they aim to enhance the cross-border payment experience for people in both nations.
此次，银联国际分别与三方签署合作备忘录。根据约定，银联国际与ASPI将分别作为两国支付机构代表，在两国央行指导下主导本次合作，蚂蚁国际、中银香港雅加达分行分别作为技术服务商、双边本币结算合作方参与本项目。中银香港是中印尼双边本币结算指定银行中市场份额最大的机构。
UnionPay International recently signed memoranda of cooperation with three parties. According to the agreement, UnionPay International and ASPI will each act as representatives of the payment institutions of their respective countries, spearheading this cooperation under the guidance of the two central banks. Alipay International and Bank of China Hong Kong Jakarta Branch will participate in the project as the technical service provider and bilateral local currency settlement partner, respectively. Bank of China Hong Kong holds the largest market share among the designated banks for bilateral local currency settlements between China and Indonesia.
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- China UnionPay has launched a multilateral cross-border QR code payment cooperation with Indonesia, following similar initiatives in Vietnam and Laos.
- The partnership involves UnionPay International, Indonesia Payment System Association, Ant Group, and Bank of China Hong Kong, aiming to enhance payment convenience for Chinese tourists in Indonesia.
- The collaboration aligns with Indonesian central bank goals for unified payment systems and supports small and medium-sized enterprises, facilitating cross-border payment interoperability using Alipay+ technology.
China UnionPay has been advancing cross-border payment solutions in Southeast Asia, recently establishing its third multilateral cross-border QR code payment cooperation in the region. Following previous initiatives involving Vietnam and Laos, UnionPay International has now announced efforts to enhance interoperability between China and Indonesia. [para. 1][para. 2][para. 3]
On January 20, 2025, UnionPay International, along with partners including the Indonesia Payment System Association (ASPI), Ant Group International, and Bank of China Hong Kong Jakarta Branch, confirmed their collaboration to promote cross-border QR code payment systems between China and Indonesia. This initiative is guided by the central banks of both nations, aiming to improve the payment experience by enabling two-way QR code access, and thus facilitating seamless transactions for users traveling between the two countries. [para. 2][para. 3][para. 4]
UnionPay International has formalized its cooperation through memoranda with partners, with each side acting under the guidance of their respective central banks. Alipay International and Bank of China Hong Kong Jakarta Branch are involved as technical and settlement partners, respectively, with Bank of China Hong Kong being a leading player in bilateral currency settlements for China and Indonesia. [para. 3][para. 4]
UnionPay's advances reflect its ongoing strategy to enhance cross-border payments through government-to-government (G2G) models. This includes past efforts that have connected QR code payment systems between China and Southeast Asian nations like Vietnam and Laos, emphasizing a broader regional integration. Ant International's integration into this model represents a significant development, allowing the merging of UnionPay's and Alipay's strengths, which has addressed previous criticisms about fragmented payment gateways and lack of standardization. [para. 4][para. 5][para. 6]
According to market insights, Indonesia’s central bank has aimed for a unified clearing institution within this bilateral framework, with Ant International acting as a technical service provider. Alipay+ will assist by acting as a front-end API interface, helping to align the various payment system requirements between UnionPay and Indonesian stakeholders, thereby minimizing modification costs. UnionPay International's officials indicated that this approach also simplifies regulatory supervision and minimizes risks related to multiple payment connections between involved countries. [para. 6][para. 7]
UnionPay's latest initiative is part of a broader move by Chinese payment institutions, as encouraged by the People’s Bank of China, to streamline interactions with overseas partners and alleviate domestic competition abroad. Furthermore, this collaboration aligns with UnionPay's mission to expand internationally and support high-level economic openness, while facilitating new business opportunities for small and medium-sized enterprises. [para. 7][para. 8][para. 9]
The collaboration further highlights a shift by Alipay towards a "four-party model" in cross-border payments, which enhances transparency and reduces risk by ensuring transactions are cleared and settled via established channels. This reflects broader trends in cross-border payments and UnionPay’s efforts to conform with international standards, laying groundwork for dispersed cross-border industry linkages. [para. 10][para. 12]
UnionPay aims to contribute significantly to regional transformation by strengthening bilateral exchanges in Southeast Asia. Ant Group believes that utilizing Alipay+ to enable seamless transactions between China and Indonesia will not only improve the travel experience but also generate growth opportunities for businesses in both countries. [para. 11][para. 15]
Additionally, following the implementation of fast-track payment initiatives like QRIS in Indonesia, a local QR code payment standard adopted by millions of merchants, UnionPay's agreements have expanded globally, maintaining interoperability with local networks in 19 countries. This latest agreement creates new prospects for markets heavily influenced by tourism and enhances the international standing of UnionPay in the payment industry. [para. 14][para. 16][para. 17]
- China UnionPay
- China UnionPay is advancing cross-border payment systems in Southeast Asia, establishing a G2G QR code payment network with Indonesia. The collaboration includes ASPI, Ant Group, and Bank of China Hong Kong. The "UnionPay + Alipay" model enhances cross-border transactions by integrating diverse payment systems. This initiative follows similar projects in Vietnam, Laos, and other countries, aiming to improve the international payment experience and align with global standards.
- Ant International
- Ant International is involved as a technical service provider in the cross-border QR code payment collaboration between China and Indonesia. Utilizing its "Alipay+" digital payment technology, it aids in integrating payment systems, reducing adaptation costs, and ensuring smoother transactions. This collaboration allows users to utilize their native e-wallets internationally and is part of a broader push by Ant International to enhance cross-border payment experiences, aligning with global payment industry trends.
- Bank of China (Hong Kong)
- Bank of China (Hong Kong) Jakarta Branch is involved as a bilateral currency settlement partner in the cross-border QR code payment cooperation between China and Indonesia, with the Bank having the largest market share among designated banks for such settlements in the region.
- Alipay
- Alipay, through Ant International, will integrate its "Alipay+" digital payment technology into the G2G cross-border payment system between China and Indonesia. This partnership with UnionPay aims to streamline cross-border transactions by serving as a technical gateway. The initiative aligns Alipay with globally accepted "four-party model" standards, improving transparency and risk control while enhancing travel and business experiences for Chinese and Indonesian users.
- October 2024：
- China UnionPay initiated efforts to promote cross-border payment connectivity with the central banks of Vietnam and Laos.
- After October 2024：
- China UnionPay established a third country-level multilateral cross-border QR code payment cooperation in Southeast Asia.
- January 20, 2025：
- UnionPay International and partners announced cooperation to promote cross-border QR code interconnectivity between China and Indonesia.
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