(Yicai) April 16 -- China and Vietnam have agreed to promote cross-border QR code payments, based on the consensus reached by the two countries’ central banks on two-way connectivity cooperation.

China UnionPay International, National Payment Corporation of Vietnam, Industrial and Commercial Bank of China, and Joint Stock Commercial Bank for Foreign Trade of Vietnam, now known as Vietcombank or VCB, signed a deal on April 14 to promote reciprocal acceptance of QR code payments, the People’s Bank of China announced yesterday.

The PBOC and Vietnam National Bank took the lead in formulating the top-level cooperation framework and guiding its implementation, with UnionPay, NAPAS, ICBC, and VCB carrying out the plan.

Last August, the central banks of China and Vietnam signed a memorandum of understanding to strengthen cooperation in local currency settlement and cross-border payments.

Two months later, UnionPay joined hands with NAPAS on QR code interoperability, promoting the use of UnionPay’s app among Vietnamese merchants using VietQR codes and that of VietQR’s app among Chinese merchants using UnionPay QR codes.

ICBC and VCB have now become the first banks to provide local currency settlement services for cross-border payments.

Since UnionPay entered Vietnam in 2005, almost all Vietnamese merchants’ point of sale terminals have accepted payments with UnionPay cards, with over one million cards issued locally. Major online platforms, such as e-commerce site Lazada Vietnam and Vietnam Airlines, accept UnionPay payments.

By reaching full connectivity between China’s and Vietnam’s QR code payment networks, consumers in both countries will enjoy more convenient cross-border payment services.

Editor: Futura Costaglione