MasterCard Granted Bank Card Clearing License in China

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The People’s Bank of China (PBC) along with the National Administration of Financial Regulation have issued a bank card clearing license to US payment company MasterCard. The announcement was made by the PBC on Sunday.

MasterCard’s Joint Venture in China

The license was granted to a joint venture established by MasterCard and NetsUnion Clearing Corporation. The joint venture is authorized to operate a yuan-oriented bank card business under the “MasterCard” brand in mainland China.

US Firms in Chinese Market

With this move, Chinese regulators have now allowed two US bank card clearing agencies, American Express and MasterCard, to enter the Chinese market. Business certificates relevant to their operations have been issued to both firms.

Significance of MasterCard’s Entry

Industry experts have pointed out that MasterCard’s entry into the Chinese market is a significant step towards implementing China’s policy of high-quality opening-up. A report by the China Media Group confirms that the move shows China’s unwavering determination to further open up.

Impact on Domestic Market

The report also anticipates that the authorization to MasterCard is likely to modify the domestic structure of the bank card clearing market. The goal is to deepen the supply-side reform of the payment industry, in order to improve the country’s real economy and the welfare of its people.

Future Goals of PBC

The PBC has expressed its commitment to enhance market access in the bank card clearing market in accordance with relevant laws. It aims to balance development and security, and enhance the regulatory mechanism of bank card clearing institutions. These measures are expected to boost the high-quality development of the payment industry.