Huang Xinghai, vice president of CUP's International Division, signed the accord here on behalf of China UnionPay while Maybank was represented by Ashraf Ali Kadir, executive vice president of Maybank.

The agreement, signed before upcoming week-long Chinese National Day holiday from Oct. 1, one of the three "golden weeks" for the economy when people are encouraged to travel, will attract more Chinese visitors to Malaysia.

"Malaysia has become one of the major destinations being visited by Chinese nationals for purposes of touring and business," said Tian Lin, assistant president of CUP.

"The number of visiting Chinese to Malaysia hit 400,000 in 2006," Tian said, adding that the number was expected to meet the record of 600,000 by the end of 2007.

China UnionPay is the one and only bankcard association in China, having about 200 members in and outside China's mainland and a card-holders base exceeding 1.3 billion cards.

China UnionPay kicked off its international process in 2004, which enabled CUP cards in more than 26 countries and areas.

In Malaysia, Maybank has the largest service network with over 45,000 merchants and over 2,000 automated teller machines (ATMs).

"In this partnership, China UnionPay cards will be accepted by about 1,000 Maybank merchants within one year at destinations and locations Chinese nationals will visit or shop," said Ashraf.

"These include duty free shops, retail outlets, food and beverage as well as entertainment outlets," Ashraf added.

According to the agreement, the framework for accepting CUP cards at Maybank's POS terminals will also be extended to its ATM network at a later stage.

CUP's cardholders can look forward to accessing the largest ATM network of more than 2,000 ATMs in Malaysia, giving them greater convenience for their cash needs if required.

Both the debit card and the credit card of CUP can be used in Malaysia, said Huang, adding that he hoped the agreement could convert Chinese national's habit of paying by cash while traveling abroad.