Unified QR payment infrastructure helps international trading partners to avoid all the unpleasant aspects of fragmented cross-border payment systems. For China and Indonesia, UnionPay International aims to facilitate the task.
UnionPay International (UPI), a subsidiary of China UnionPay, together with its partners, has launched a pilot program enabling interoperable cross-border QR code payments between China and Indonesia. The initiative, developed under the guidance of the two central banks, aims to improve convenience for consumers and merchants in both countries.
During the launch ceremony, the first transactions were demonstrated in Beijing and Jakarta. Selected users from China’s mainland can now make QR code payments through the UnionPay and Alipay apps at more than 40 million QRIS-enabled merchants in Indonesia. At the same time, pilot merchants in China can accept payments from 22 leading Indonesian mobile payment apps. For now, the service is in a sandbox phase, limited to whitelisted participants and merchants, but a full rollout is expected later in 2025.
The linkage will allow transactions to be settled directly in local currencies, reducing reliance on third-party services and FX exchanges, and streamlining the payment process. This is expected to benefit tourists and business travelers, as well as merchants who want to attract international customers.
China and Indonesia are significant economic partners. Indonesia is China’s largest trading partner in Southeast Asia, with bilateral trade exceeding $100 billion in recent years. The two countries cooperate closely in infrastructure, energy, and digital economy projects. Tourism is also a strong link: before the pandemic, millions of Chinese tourists visited Indonesia annually, with Bali being one of the most popular destinations. The return of travel flows has renewed demand for easier cross-border payment options.
By connecting their QR payment systems, China and Indonesia are aligning with a broader regional trend. Other countries in Southeast Asia, including Thailand, Singapore and Malaysia, have already established cross-border QR payment links. UnionPay itself is pursuing similar collaborations in nearly 20 markets worldwide.
Industry observers say the initiative could help simplify cross-border spending, promote local currency usage, and strengthen financial cooperation between the two countries. For UnionPay, the project also reflects its ambition to expand internationally while building an ecosystem that benefits consumers, merchants, and financial institutions alike.
