Visa Inc. (NYSE: V) and China UnionPay (CUP) have agreed to work together on innovation payments security and financial inclusion, said Visa on Thursday.
Both parties signed a Memorandum of Understanding (MOU) in Shanghai that would allow the two to collaborate in strengthening and creating new value for the bank card ecosystem.
Visa said the agreement will benefit consumers, merchants, financial institutions, as well as technology partners.
“We are excited to be working together on innovation as digital payments transform commerce,” said Charlie Scharf, CEO of Visa Inc.
“The global payments industry will benefit from these efforts,” adds Scharf.
China UnionPay said the agreement will provide cardholders with secure, more convenient and highly efficient payment services.
“The MOU signing is the result of joint efforts by CUP and Visa, representing a new start to our win-win cooperation,” said Shi Wenchao, President of CUP.
China UnionPay is the only domestic bank card organization allowed to operate in the People’s Republic of China. Its network connects the automated teller machines of all banks throughout mainland China.
China said last year that it will be opening up the market for foreign payment networks beginning June 2016.