China approves Mastercard’s card clearing joint venture in boon for expats, visitors
- Mastercard will be able to issue branded bank cards and run an independent payment information exchange network for fund settlements and transactions
- The approval after more than three years follows President Xi Jinping last week reminding US executives of the ‘immense opportunities’ in China
Beijing’s approval of an application by the Chinese joint venture of American payments firm Mastercard to conduct yuan clearing operations and issue yuan-denominated bank cards would provide a boost for expats and visitors, but it is set to face competition from established domestic heavyweights WeChat Pay and Alipay, analysts said.
It is the second overseas bank card clearing institution approved by the People’s Bank of China and the National Administration of Financial Regulation.
“Foreigners working in China and executives and tourists on short visits will cheer the news more than Chinese consumers do, as the latter have grown so used to the duopoly of WeChat Pay and Alipay’s mobile, cardless payment services,” said Wang Pengbo, a researcher with market consultancy firm Botong.
We welcome Beijing’s move to enable more market access for American companies
American Express was the first foreign bank to obtain approval in 2020, although it did not have the controlling stake in its joint venture.
