Mastercard and NetsUnion prepare to enter the Chinese payments market
Mastercard NUCC Information Technology (Beijing) Co., Ltd, a joint venture of Mastercard and NetsUnion Clearing Corporation (NUCC) has submitted an application to operate in the Chinese payments market and People’s Bank of China (PBOC) has formally given an approval to conduct bankcard clearing business.
According to PBOC, Mastercard NUCC will follow required procedures and apply to the PBC for the start of business after preparations are completed in a year.
“We are delighted and encouraged by this latest decision from the PBOC” said Ajay Banga, President and CEO of Mastercard. “China is a vital market for us and we have reiterated our unwavering commitment to helping drive a safer, more inclusive and seamless payments ecosystem for Chinese consumers and businesses. We remain focused on working with the Chinese government and local partners to grow the overall payments infrastructure”.
As a part of China’s financial opening up efforts, the opening-up of the bankcard market will help promote the development of payment and clearing services in the country in a more open and internationalised way, so that diversified and differentiated services will be offered. The PBOC says that the approval of Mastercard NUCC’s application adds to the moves China has taken to further open up its financial sector and deepen financial supply-side structural reform.