Mastercard, Visa and American Express get closer to the Chinese electronic payment market
The first phase of the United States and China trade deal, signed on 15th Jan 2020 under Article 4.4: of the trade deal agreement, mentions that the US payment companies’ applications to operate in the Chinese market would be accepted and reviewed within a defined time frame.
The applications by payments companies to the Chinese government would be accepted in five working days and the responses to the applications would be done within 90 working days from the date of acceptance of the application.
The pact expressly mentions that the Chinese government shall accept any licence application from Mastercard, Visa or American Express. The US, in return, has affirmed it would give non-discriminatory treatment to Chinese payment service providers, which includes Union Pay.
Back in November 2018, the People’s Bank of China granted AmEx preparatory approval for a clearing and settlement licence in mainland China, making it the first US card network to gain direct access to the country.