China’s state-backed UnionPay International signed a co-operation agreement last week with Portugal’s Unicre allowing the use of UnionPay bank cards in the European nation, China’s state-run news agency Xinhua reported. Unicre issues and manages credit cards and payments via bank cards.

UnionPay International President Shi Wenchao was quoted saying in Lisbon that by the end of the year 80 percent of Portuguese businesses would be able to accept payments via UnionPay cards. The system should start operation in July, according to Portuguese media.

“The massive use of UnionPay cards by Chinese tourists in Portugal will greatly promote the economic development in Portugal and contribute to trade and personnel exchange between the two countries,” Xinhua quoted Mr Shi saying.

Unicre Chief Executive Officer Luis Flores said the agreement marks “a milestone” for the company and would boost the volume of trade for Portuguese businesses.

Huang Songfu, China’s Ambassador to Portugal, was quoted saying: “The co-operation in the finance sector has now become more important for an overall co-operation between the two countries.”

According to Portuguese official data, over 113,200 Chinese tourists visited Portugal last year, increasing by nearly half from the previous year, and they spent 54 million euros (US$61.5 million) in the country, 20 million euros more than in 2013.