Bank Of China and UnionPay Partner To Develop Blockchain Payment System
Bank Of China Explores Blockchain Payment System With Help of UnionPay
The bank of China has recently made a partnership with the China UnionPay corporation. The announcement of the partnership happened on August 15 and it states that both parties will get together in a joint venture to explore the possibilities of the blockchain technology apps for the development of a payment system.
Together, the two companies will jointly investigate big data and the blockchain technology in order to improve the way that mobile banking products work today. The partnership comes at a time when the demand for this kind of product is rising and will give further opportunities for these companies to create cross-border mobile payments.
How Will The Partnership Between The Bank of China and China UnionPay Work?
Each of the two companies will have a part in this new partnership. China UnionPay is aiming to construct a unified port for mobile devices that can integrate financial services on the same apps. The cardholders of the app would be able to use QR codes whenever they have to spend, transfer or even trade, which would be made via a cloud payment part of the app.
The Bank of China will then launch a promotional program that will have the goal of attracting customers to the payment system to provide a better experience to the users. According to the bank, the app will offer a safer and considerably more convenient experience for people who want or need to use efficient mobile apps to make payments or transactions.
Other Institutions Also Developing Similar Apps
There is a number of other institutions and companies that are also interested in this market. According to the Hong Kong University of Science and Technology Business School, the institution has recently received a $20 million USD research grant which will be used on research to create better ways of handling electronic payment systems.
The money will be used to further explore the blockchain technology and to keep testing the technology to obtain better results.
Also, just last week, the Chinese Ministry of Industry and Information Technology (MIIT) has proposed a set of measures that can be used to promote the development of blockchain apps in the country and to provide what was described as a “healthy and orderly” development of a national industry of blockchain technology in China.
The MIIT is also interested in proving extensions of the blockchain technology to the Chinese financial sector and in other similar areas like supply chain management and internet of things.