China’s UnionPay International teams up with NAPAS

China’s UnionPay International has agreed a deal with NAPAS. Photo: VGP/Nhat Bac

Both parties have agreed to deepen the collaboration on cross-border QR code interoperability and enable QR payments by UnionPay and Vietnamese local bank applications/e-wallets on each other's networks, to enhance the experience of users from both countries.

Dong Junfeng, chairman of UnionPay International, said that UnionPay is an important part of China's financial infrastructure and a leading global card scheme, while improving its own acceptance network, has been actively driving interoperability with payment networks in international markets to build an open and inclusive ecosystem. This partnership model has been widely implemented in ASEAN countries.

"The collaboration in Vietnam will provide convenient payment services for the Chinese and Vietnamese as they travel across borders, help both countries promote the high-quality cooperation of the Belt and Road Initiative, and contribute to China's high-standard opening up," Junfeng noted.

On August 19, the central banks of China and Vietnam signed an MoU to further promote collaborative efforts in areas including cross-border payment interoperability. In line with this framework, UPI has been deepening collaboration with NAPAS and will open up the UnionPay network to Vietnamese wallets on a large scale. In the future, Vietnam's local banking app and e-wallet users will be able to scan UnionPay QR for payment in China's mainland.

The collaboration is significant in that it enhances UnionPay's service capability to support both inbound and outbound payments, making payments easier for Vietnamese visitors to China. In addition, it helps drive the transformation of the payment industry in Vietnam by supporting local banking apps and e-wallets to expand their use.

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Widespread adoption of digital payments taking hold Vietnam’s payment sector is rapidly growing, with significant advancements in mobile money, QR code transactions, and e-wallet services led by dozens of payment intermediary organisations.

Cross-border QR codes begin to take shape Vietnam is gradually advancing its cashless payment infrastructure by establishing cross-border QR code payment systems with neighbouring countries, though challenges remain in fully integrating inbound payments from foreign tourists.