American Express gains approval to launch card clearing network in China
November 20, 2018 Category China News Round-up, Weekly
The first foreign card network to clear card payments in China will be launched soon. The People’s Bank of China (PBOC) has approved a joint venture of American Express Co to start preparations for a card clearing network, making it the first of its kind to gain direct access to the Chinese bank card payment market. Express (Hangzhou) Technology Services Co, a joint venture between American Express and Chinese fintech company Zhejiang LianLian Technology Co, is required to complete operational preparations within a year and get the green light from the central bank before running the card clearing business. “We are pleased to be the first foreign payment network allowed to build a network in the Chinese mainland,” said Stephen J. Squeri, Chairman and CEO of American Express.
Rivals Visa and Mastercard welcomed China’s further opening of its payments market. Both have filed applications with the PBOC to access the Chinese market as a bank card clearing institution, and said they would keep working closely with the Chinese government as they proceed with the application process. “China is one of the world’s fastest growing payments markets, and leading the way in mobile payments innovation. Our commitment to China is for the long term,” Visa said. Mastercard said it was fully confident in the prospects of the China market.
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