China UnionPay Co. Ltd. (CUP), a bankcard services provider, announced Wednesday it has reached an agreement with Taiwan Financial Information Service Co., Ltd (FISC) that allows the mainland bankcards to be used in ATMs in Taiwan.

The agreement enables Chinese mainland tourists holding CUP bankcards to withdraw cash and make balance inquiries in 64 percent of automatic teller machines (ATMs) in Taiwan.

CUP's cooperation with FISC also boosted the Chinese mainland bankcard association's presence in Taiwan after the CUP bankcards were accepted by Taiwan merchants beginning in August 2009.

According to the agreement, ATMs from 18 Taiwan banks, or 64 percent of the island's total, will begin accepting CUP bankcards immediately.

Each CUP debit card can only be used to withdraw a maximum cash equivalent of 10,000 yuan (1,472 U.S. dollars) per day, according to the agreement.

The service is not only expected to assist travelers from the mainland, but also business transactions across the Taiwan Strait, said Xu Luode, UnionPay president, at a press conference in Taipei.

"We hope to cooperate with local banks to expand our service in Taiwan and improve the service quality," he said.

"Our business in Taiwan has shown a favorable momentum as UnionPay became a major payment tool for mainland travelers," Xu said.

Founded in 2002, UnionPay is headquartered in Shanghai and has 36 branches in the mainland and some 400 member institutions worldwide.