China UnionPay and MasterCard Sign Payment Gateway Agreement
by July 1, 2011 2:31 pm0
Under the agreement, both UnionPay and MasterCard will cooperate to configure their respective systems to equip the MasterCard Payment Gateway with the ability to process transactions made using UnionPay Cards for e-commerce merchants outside of mainland China.
Additionally, UnionPay and MasterCard announced that both parties have signed an Addendum to extend the term of their existing Memorandum of Understanding (MOU). The areas of cooperation included within the scope of the Addendum and Payment Gateway Service Agreement are related to cross-border transactions and not domestic transactions. The aim of the MOU is for the establishment of a mutually beneficial relationship to explore future business development. Among other areas, UnionPay and MasterCard will work together towards exploring mutually beneficial solutions to innovative payment businesses.
Still, with no access to the domestic transactions (with the exception of foreign-issued MC cards) in China, MasterCard is taking a practical approach to try to capture as much a piece of the booming spending power of Chinese consumers as possible. It is probably also hoping that a better relationship with CUP will put it in a better situation in China.