Financial services and technology group Freedom Bank has signed a memorandum of cooperation with UnionPay Business to support Kazakhstan-China cross-border ecommerce.
The signing of the agreement between Freedom Bank and UnionPay Business took place at the Kazakhstan-China Business Council meeting in Beijing. The bank underlined that the move focuses on supporting the development of Kazakhstan-China cross-border ecommerce in the wholesale sector and facilitating broader economic and trade connectivity between the two countries.
Additionally, the memorandum was signed by three parties, including Freedom Bank, UnionPay Business Payment Co., and Verum Payments Limited.
The agreement’s plans
Through this initiative, the involved parties intend to create a China-Kazakhstan settlement system for ecommerce and the digital economy through Freedom Bank. The project is set to be assisted by the Advanced Industry Research Center of the Xinhua News Agency and financed by Polyking New Horizons Technology Industry Co., Ltd, a subsidiary of CITIC POLY FUND. The organisation have also agreed upon accelerating the development of cross-border ecommerce and wholesale payment operations, further advancing economic and trade relations between Kazakhstan and China.
Furthermore, Freedom Bank is set to assist UnionPay Business in developing and implementing the settlement system and in solidifying its presence in Central Asia. At the same time, UnionPay Business will support the bank in opening payment channels, offering technical services and correspondent accounts in yuan and USD and Chinese financial institutions.
According to Freedom Bank’s officials, the collaboration with UnionPay Business plans to focus on investing in the future of Kazakhstan-China economic relations. An important part of the memorandum is joint work to build infrastructure and expand cooperation. By developing advanced payment infrastructure, the two companies aim to create the foundation for digital trade and provide new opportunities for businesses and consumers in both regions.
Prior to this agreement, Freedom Bank rolled out an acquiring service for UnionPay cards together with UnionPay International. Through this, UnionPay cardholders can pay for goods and services through POS terminals and merchant websites connected to the Freedom Pay service. The solution can be utilised by all UnionPay cards issued both in Kazakhstan and abroad.
