(15 May 2013 – China) Bank of America Merrill Lynch (BAML) Global Transaction Services is the first foreign bank in China to launch a cash management alliance with China UnionPay (CUP).
The exclusive cash management alliance in mainland China with CUP is the only bankcard association established under the approval of the State Council of the People’s Republic of China and the People’s Bank of China (PBOC).
BAML said the move was to pre-empt future market requirements in China and to cater to client demands.
This fits in with CUP’s strategic ambition to become a more broad-based infrastructure player, giving BAML a chance to substantially support existing cash management strengths in China and provide a centralised account for BAML clients.
“Through the alliance we can support direct debits from both the largest local nationwide banks for corporate accounts as well as direct debits for consumer flows from over 100 local banks in addition to debits from credit cards issued by over 50 banks.
“Furthermore, the alliance leverages the strong technology in payment and collections of CUP’s established card settlement network, combined with our unmatched strength in global treasury products,” BAML said.