China UnionPay and Visa Thursday signed a Memorandum of Understanding in Shanghai with both parties agreeing to collaborate on payments security, innovation and financial inclusion, according to a press release.

The companies said the agreement provides an important platform for China UnionPay and Visa to work together to strengthen and create new value for the bank card ecosystem, benefiting consumers, merchants, financial institutions, and technology partners.

"The MOU signing is the result of joint efforts by China UnionPay and Visa, representing a new start to our win-win cooperation," Shi Wenchao, president of China UnionPay, said in a statement. "As open payment networks, both companies follow the same business model, share the common interest of maintaining their brand rights and promote the core concept of open cooperation. The joint cooperation will have an important influence on the healthy development of the global payments industry, providing cardholders with more convenient, secure and highly efficient payment services."

"Visa is delighted to have concluded this MOU with China UnionPay," Visa CEO Charlie Scharf said in a statement. "This is a unique collaboration between two leading industry players to address major challenges facing the payments industry. We are excited to be working together on innovation as digital payments transform commerce, resulting in safer, faster and more convenient ways for consumers to pay."