UnionPay International announced today that it has signed an agreement with Post Bank Uganda, a leading bank in the country, to jointly tap the local payment market.
With the agreement, Post Bank Uganda will issue 400,000 UnionPay debit cards in the next three years, marking the first time that UnionPay will be issued in the country. The cards will feature EMV (ease of movement value) chips and can be used in UnionPay's global acceptance network using a contactless payment function, according to the statement.
At present, UnionPay's acceptance coverage in Uganda is over 80 percent, making it easy to pay with UnionPay cards issued locally and globally. The two sides will also work together to explore future cooperation in rolling out UnionPay's innovative products, including their quick response code payment and business to business online payments.
Cai Jianbo, chief executive officer of UnionPay International, said that they are willing to participate in the development of the payments industry in Africa by sharing with local partners their experience in network building, product and service design, and technology.
He said the cooperation is "significant" as it expedites the localization of UnionPay's business in the market, helps major local financial institutions upgrade their products, and brings better services to local UnionPay cardholders.
Stephen N. Mukweli, chief executive officer of Post Bank Uganda, said UnionPay International has offered payment solutions at a good price, which facilitates them in issuing international branded bankcards for the first time.
The bank aims to have closer cooperation with UnionPay International in digital payments in the future, especially since young people account for 60 percent of the country's population.
UnionPay is now present in 50 countries and regions across Africa, with overall acceptance coverage of over 70 percent on the continent.