Freedom Bank and UnionPay Business Forge Partnership to Advance Kazakhstan-China Cross-Border E-Commerce
Rhea-AI Summary
Freedom Bank, a subsidiary of Freedom Holding Corp. (NASDAQ:FRHC), has signed a strategic memorandum of cooperation with UnionPay Business to enhance Kazakhstan-China cross-border e-commerce capabilities. The agreement, signed during Kazakhstan's President's visit to China, involves establishing a China-Kazakhstan settlement system through Freedom Bank.
The partnership includes three key parties: Freedom Bank, UnionPay Business Payment Co., and Verum Payments Limited. The project will be supported by Xinhua News Agency's Advanced Industry Research Center and funded by CITIC POLY FUND's subsidiary. Freedom Bank will help develop the settlement system while UnionPay Business will provide technical services and correspondent accounts in yuan and USD.
The bank has already launched an acquiring service for UnionPay cards, enabling payments through POS terminals and merchant websites via Freedom Pay service.
Positive
- Strategic partnership enhances cross-border payment infrastructure between Kazakhstan and China
- Project backed by major institutions including Xinhua News Agency and CITIC POLY FUND
- Access to correspondent accounts in yuan and USD through Chinese banks
- Expansion of UnionPay card acceptance through Freedom Pay service
Negative
- None.
Insights
Freedom Bank's partnership with UnionPay Business creates substantial strategic advantage for Kazakhstan-China trade flows with long-term revenue potential.
Freedom Bank's new memorandum of cooperation with China's UnionPay Business represents a strategic positioning in the growing Kazakhstan-China economic corridor. The agreement establishes Freedom Bank as a key financial intermediary for cross-border e-commerce transactions, particularly in the wholesale sector.
This partnership has multiple layers of significance. First, it provides Freedom Bank direct access to Chinese yuan settlement capabilities through correspondent accounts with Chinese banks. Second, it positions Freedom as the infrastructure provider for a dedicated China-Kazakhstan e-commerce settlement system. Third, the backing from substantial Chinese entities including a CITIC POLY FUND subsidiary and the Xinhua News Agency research center provides institutional credibility.
The deal's structure demonstrates Freedom's expanding capabilities beyond traditional banking into cross-border digital commerce infrastructure. By facilitating yuan-denominated transactions, Freedom Bank gains a competitive moat in the Central Asian market while reducing currency conversion costs for clients.
The timing aligns with Kazakhstan's broader political-economic strategy, evidenced by the signing during the Kazakh President's official China visit. This suggests potential regulatory support and alignment with national economic priorities.
This builds upon Freedom Bank's existing relationship with UnionPay International for card acquiring services, showing a systematic approach to building a comprehensive China-Kazakhstan payment ecosystem rather than isolated service offerings. While short-term revenue impact may be modest, the long-term strategic positioning in this cross-border trade corridor represents meaningful growth potential for Freedom Holding Corp's banking division.
NEW YORK CITY, NEW YORK / ACCESS Newswire / September 3, 2025 / Freedom Bank, part of Freedom Holding Corp. (Nasdaq:FRHC), a diversified financial services and technology group, has signed a memorandum of cooperation with the Chinese company UnionPay Business. The signing took place at the Kazakhstan-China Business Council meeting in Beijing, during the official visit of Kazakhstan's President, Kassym-Jomart Tokayev, to China.
The Bank noted that the agreement is intended to support the development of Kazakhstan-China cross-border e-commerce in the wholesale sector and to promote broader economic and trade ties between the two countries.
The memorandum was signed by three parties: Freedom Bank Board Member Aidos Zhumagulov, General Manager of UnionPay Business Payment Co., Ltd Hebei Branch, Guo Guangxin, and CEO of Verum Payments Limited, Rinat Berikbolov.
As part of the agreement, the parties plan to establish a China-Kazakhstan settlement system for e-commerce and the digital economy through Freedom Bank. The project will be supported by the Advanced Industry Research Center of the Xinhua News Agency and financed by Polyking New Horizons Technology Industry Co., Ltd, a subsidiary of CITIC POLY FUND.
The parties also agreed to accelerate the development of cross-border e-commerce and wholesale payment operations, further deepening economic and trade relations between Kazakhstan and China. Freedom Bank will assist UnionPay Business in developing and implementing the settlement system and in strengthening its presence in Central Asia. In turn, UnionPay Business will support Freedom Bank in opening payment channels, providing technical services and correspondent accounts in yuan and US dollars at Chinese banks.
Timur Turlov, founder and CEO of Freedom Holding Corp., stated: "Our cooperation with UnionPay Business is more than a banking initiative - it is an investment in the future of Kazakhstan-China economic relations. A key element of the memorandum is joint work to build infrastructure and expand cooperation. By developing advanced payment infrastructure, we are laying the foundation for digital trade and creating new opportunities for businesses and consumers in both countries."
Freedom Bank noted that it had previously launched an acquiring service for UnionPay cards together with UnionPay International. UnionPay cardholders can now pay for goods and services through POS terminals and merchant websites connected to the Freedom Pay service. The service is available for all UnionPay cards issued both in Kazakhstan and abroad.
About Freedom Holding Corp.
Freedom Holding Corp. provides financial services in 22 countries, including Kazakhstan, the United States, Cyprus, Poland, Spain, Uzbekistan, and Armenia. The Company's principal executive office is located in New York City. In Kazakhstan, Freedom is actively developing its financial and digital ecosystem, which includes Freedom Bank, Freedom Broker, the insurance companies Freedom Life and Freedom insurance, as well as a lifestyle segment that features Arbuz.kz, Freedom Ticketon, and Aviata. Freedom Holding Corp. shares are traded on the U.S. technology exchange NASDAQ, the Kazakhstan Stock Exchange (KASE), and the Astana International Exchange (AIX) under the ticker symbol FRHC. Freedom Holding Corp. is regulated by the U.S. Securities and Exchange Commission (SEC) and is a member of the Russell 3000® Index.
Contact Information
Natalia Kharlashina
PR Department, Freedom Holding Corp
prglobal@ffin.kz
+77013641454
SOURCE: Freedom Holding Corp.
View the original press release on ACCESS Newswire
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