Bank of America Merrill Lynch (BofA Merrill) Global Transaction Services (GTS) and China UnionPay (CUP) announced the launch of their cash management alliance in mainland China.
BofA Merrill is the first foreign bank to launch a dedicated cash management alliance with CUP, 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).
The alliance enables GTS cash management clients to pay into and debit out of individual, small business and corporate accounts across multiple banks in mainland China. Through the alliance, GTS leverages CUP’s network to support payment services, as well as collections via merchant acquiring.
The services provided within the alliance also include direct debit collection and direct disbursement. The launch of the alliance follows the memorandum of understanding (MOU) and master agreement signed by BofA Merrill and CUP to provide cash management services in China in 2012.
BofA Merrill also announced it has been chosen by Outback Steakhouse, a subsidiary of Bloomin’ Brands, to provide a comprehensive suite of cash management solutions for its first company-owned location in Shanghai. Under the terms of the agreement, BofA Merrill will serve as one of the restaurant’s cash management banks in China, utilising its CUP alliance, to provide enhanced localised solutions, including daily collections, merchant services, account management and electronic payments (e-payments).
“Progressive multinational clients like Outback Steakhouse increasingly demand localised and customized cash management solutions to help drive their China businesses,” says Ivo Distelbrink, head of Global Transaction Services, Asia Pacific.