Network International, the UAE's homegrown payments processor, has signed an agreement with China's UnionPay International for QR code-based payment services.
Based on the new deal, nearly 10,000 merchant terminals in the UAE will support UnionPay's QR code-based payment service bringing convenience to UnionPay cardholders who use the 'UnionPay' app, the company's secure and fast payment service.
The deal follows UnionPay's agreement last year with Network International on acceptance of UnionPay QuickPass, which enables UnionPay cardholders to conduct contactless payments on Network International POS terminals in the UAE using their NFC-enabled chip cards or smartphones.
Currently, all Network POS terminals in the UAE support UnionPay QuickPass, and the new agreement is expected to boost wider acceptance of QR code services among merchants across the UAE.
The UnionPay cards are an increasingly important tool for payments in the UAE, as 15.95 million Chinese visitors visited the UAE in 2018. While cash payments still dominate in the UAE, in 2018, trading volumes of the domestically issued UnionPay cards increased nearly 20 percent year-on-year.
Moreover, China's multi-billion dollar Belt and Road Initiative (BRI) has contributed to the country maintaining its position as the UAE's largest trading partner for several years.
According to Shao Fujun, Chairman of China's UnionPay, the BRI has led to increasingly stronger demand for cross-border payments between China and the UAE. In response, UnionPay has significantly expanded coverage of UnionPay mobile payments service to fulfill the needs of its clients visiting the UAE.
Currently, all Network POS terminals in the UAE support UnionPay QuickPass, and the new agreement is expected to boost wider acceptance of QR code services among merchants across the UAE.