The strategic partnership - in which Powa has a 49 % share and UnionPay 51 % - will focus initially on the online-to-offline (“O2O”) market.
Consumers will be able to make purchases of items by scanning codes in stores, in printed media and online, with point-of-sale transactions potentially coming into play down the line.
While UnionPay’s subsidiary is managing the payment processing, the technology underpinning the mechanics of the O2O transactions is called PowaTag. Powa claims that it is working on PowaTag omnichannel commerce projects with some 1.200 brands worldwide including L’Oreal and Carrefour.
The PowaTag tech is based around QR codes, which can be visual or audio-based.
Powa says the joint venture will first launch in Guangdong Province, which has a population of 106 million. Initially, the rollout will be to 100.000 merchants.
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