China's largest bank card association China UnionPay (CUP) and Visa Inc. signed a Memorandum of Understanding in Shanghai on Thursday with the parties agreeing to collaborate on payment security, innovation and financial inclusion.

The deal was signed between Shi Wenchao, president of CUP and Charlie Scharf, CEO of Visa Inc.

It will enable CUP and Visa Inc, two world-leading payment networks, to work together on the basis of meeting regulatory requirements to strengthen and create new value for the bank card ecosystem benefiting consumers, merchants, financial institution, and technology partners，said Shi.

Scharf said collaboration would address major challenges facing the payment industry and champion the idea of win-win cooperation embodied in open payment networks.

The two parties will be working together on innovation as digital payments transform commerce, and expand access to financial services for the underserved..