(CUP) and US payment processor and merchant acquirer Global
Payments have signed a global cooperation agreement in a landmark
deal that will significantly increase the acceptance of CUP cards
worldwide.
Under the agreement, Global Payments will
gradually deploy UnionPay card merchant acceptance services in 13
countries and regions, including Europe, Asia-Pacific and South
America. As a result, the services will become available in
countries like the UK, the Czech Republic, Singapore, Malaysia,
India, the Maldives, Brunei and Sri Lanka.
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The signing of the global agreement follows a
stage-by-stage build-up between Global Payments and CUP, initiated
by the signing of a memorandum of understanding in September 2008
which then led to a cooperation agreement being signed for the
Canadian market.
Following the success of that initiative,
Global Payments and CUP have now decided to accelerate the
expansion of their respective businesses globally. Both entities
have also embarked upon a second phase of their Canadian agreement
which see them further promoting CUP card acceptance in Canada and
accelerate the opening of merchants frequented by CUP
cardholders.
CUP chairman Liu Tinghuan affirmed that CUP
will further reinforce international cooperation to develop CUP
into a bank card organisation with international competitiveness
and influence, and UnionPay into a payment brand providing services
to more countries and regions besides China through continuous
efforts. Paul Garcia, chairman of Global Payments, said the deal
would enable both organisations to extend global reach.
Aside from extending CUP’s reach outside the
Chinese market (and possibly posing a competitive threat to Visa
and MasterCard), the deal is also significant for Global Payments
as it builds upon its 2007 merchant acquiring joint venture with
HSBC, in which it has a 51 percent stake. That deal gave Global
Payments access to banking licences which can be exported across
Europe, enabling it to acquire merchants across the continent.
Global Payments has already built up a strong presence in the US,
having provided transaction services to over 1 million
merchants.
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