China UMS lands $297m from Everbright-IDG

China UnionPay Merchant Service (China UMS) has received a $297m investment from Everbright-IDG Industrial Fund.

The company is a subsidiary of China UnionPay that handles card payment services for merchants.

It currently operates in 337 Chinese cities and serves 5.7m merchants across 7m point-of-sale terminals.

As a result of the deal Everbright-IDG Industrial will become the company’s second-largest shareholder behind China UnionPay and will have the right to appoint one or more board member.

The fund was established earlier this year as a joint venture between China Everbright and IDG Capital Partners aimed at supporting mature Chinese companies in scaling.

It focuses on investing in fintech as well as in entertainment, education, mobile e-commerce and semi-conductor sectors.

The firm says it will play an active role in China UMS’ business integration and aims to help develop the third-party payments market.

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