PayPal has forged an alliance with UnionPay International (UPI) to expand its network in the Chinese digital payments market.
The partnership will focus on accelerating the adoption of digital payments — particularly in cross-border commerce.
As per the terms of the agreement, PayPal will give UnionPay cardholders access to its network across the world.
In the future, the deal could lead to PayPal being accepted at retail locations where UnionPay is accepted, both in China and internationally.
PayPal senior vice president of global payments Jim Magats said: “The partnership will give UnionPay customers more choice when shopping cross border and has the ability to contribute to the overall growth of China’s e-commerce ecosystem.
“It will also give PayPal the opportunity to explore the option to expand PayPal’s digital wallet to physical retail locations where UnionPay is accepted in China, or internationally.”
Following the agreement, UnionPay customers can now add their cards to PayPal wallets in Australia, Philippines, Singapore, South Korea, and Thailand.
The companies sin a joint press statement noted that intend to add over 30 markets this year.
UnionPay International vice president Larry Wang said: “We are very glad to deepen collaboration with PayPal, the global leader in e-commerce. Both parties will jointly explore and implement the application of new products and new payment modes in the field of cross-border payment, hoping to better serve our cardholders and create greater value for both sides.”
The partners also agreed to create joint customer awareness campaigns at PayPal merchants across the world.
