China’s financial regulators issue MasterCard bank card clearing license
Published: Nov 19, 2023 10:13 PM
A Mastercard logo is seen on a credit card. File Photo: VCG

A Mastercard logo is seen on a credit card. File Photo: VCG

The People's Bank of China (PBC), the central bank, and the National Administration of Financial Regulation granted a bank card clearing license to the US payment company MasterCard on Friday, as announced by the PBC on Sunday.

The certificate was issued to a joint venture company in China, established by MasterCard and NetsUnion Clearing Corporation. This authorization allows the joint venture to operate a yuan-oriented bank card business under the "MasterCard" brand in mainland China.

Currently, Chinese regulators have permitted two US bank card clearing agencies, American Express and MasterCard, to enter the Chinese market and have issued the relevant business certificates.

Experts noted that MasterCard, as the US' second-largest bank card clearing agency, being granted permission to enter the Chinese market is a practical step in implementing the country's policy of high-quality opening-up. This move demonstrates an unwavering determination to further open up, according to a report by the China Media Group.

Furthermore, this authorization is expected to upgrade the domestic structure of the bank card clearing market and deepen the supply-side reform of the payment industry, aiming to better serve the country's real economy and the livelihood of its people, as stated in the report.

The PBC has pledged to promote market access in the bank card clearing market according to relevant laws, to coordinate development and security, and to improve the regulatory mechanism of bank card clearing institutions, with the goal of facilitating the high-quality development of the payment industry.

Global Times