UnionPay launches cross-border mobile payment service in Hong Kong, Macau as it targets rivals Alipay, WeChat Pay
The bank card network operator is keen on expanding mobile payment connectivity in the Greater Bay Area
China UnionPay has become the first card payment processor to offer a cross-border QR code payment service to holders of cards issued by Hong Kong and Macau banks without an onshore renminbi bank account as it faces intensifying competition from the likes of Alipay and WeChat Pay.
UnionPay QR code service, offered in partnership with five banks and a non-bank fintech firm, enables UnionPay credit or debit cardholders to link their cards with the UnionPay app and settle payments in yuan, Hong Kong dollars and patacas.
Sources close to UnionPay said such cross-currency payment on a single mobile app is first in the Greater China region. Industry players say Ant Financial and Tencent Holdings, which operate Alipay and WeChat Pay respectively, have not yet launched similar services as mobile payment services in China remain distinct from their Hong Kong offerings.
The banks include the Hong Kong and Macau licensed units of Bank of China, Bank of Communications (Hong Kong), China Guangfa Bank’s Macau branch, Banco Nacional Ultramarino.
The tie-up also extends to K&R International, a non-bank company that has a stored value facility licence from the Hong Kong Monetary Authority.
The UnionPay app’s cross-border payment functionality also represents the company’s ambition in expanding its mobile payment service outside China.