UnionPay International has signed an agreement with PT Rintis Sejahtera (Rintis), one of the largest ATM switch networks in Indonesia, to jointly promote large-scale issuance of chip cards in Indonesia.

Under the five-year agreement, Rintis will promote its 60 member institutions to change the magnetic stripe debit cards in circulation to UnionPay-PRIMA co-branded chip cards.

The agreement comes close on the heels of Bank Indonesia setting up National Standard Indonesian Chip Card Specification (NSICCS) as the country’s technology benchmark for ATMs and debit cards. Currently, the majority of bankcards issued in Indonesia are magnetic stripe cards.

UnionPay International CEO Cai Jianbo said: “Supporting the implementation of the Belt and Road Initiative, UnionPay is willing to provide our expertise in payment network, products, services and technologies to participate in the industry upgrade in Southeast Asia, by taking part in the building of payment infrastructure and conducting payment standard cooperation.”

Jianbo added that based on the current collaboration framework, the two will deepen cooperation in payment innovation such as QR code payments in the future.