8.6 C
New York
Friday, January 22, 2021
Home News Mastercard in China? $27 Trillion market awaits!

Mastercard in China? $27 Trillion market awaits!

Mastercard Inc. won approval to set up a bank card clearing business in China, gaining access to a $27 trillion payments market.

Mastercard attempted to enter China’s massive market for years already, but recently it has won approval from the People’s Bank of China (PBOC). It will begin formal preparation to set up a bank card clearing institution in China.

Related: Digital Russia? Cash is on the decline and digital payments are on the rise (thanks to Putin)

The news is a significant step toward Mastercard being able to do business in China, where large, domestic players currently dominate. “Mastercard’s joint venture in the country needs to complete preparation work within a year,” the People’s Bank of China said in a statement.

The Communist Party ruled country is opening up its financial markets this year to allow foreign firms to set up fully-owned operations to run insurance businesses, asset management, and investment banking. China in June 2015 allowed foreign bank-card clearing providers to obtain licenses by setting up units or acquiring a local company, ending a monopoly by state-run China UnionPay Co.

Related: The biggest changes to “Swipe fees” in a decade! Let’s see what Visa is planning.

China had 8.2 billion bank cards in circulation at the end of September, with 90% of them debit cards.

Avatar
Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

Monzo Bank founder Tom Blomfield is leaving the company

Tom Blomfield who co-founded Monzo Bank 2015, is leaving the digital bank, citing "challenges" from the pandemic, TechCrunch reported.

UK Government voted down BNPL regulation bill

70 MPs have decided to vote down a bill which was supposed to regulate buy now, pay later companies like Klarna, Laybuy and Clearpay.

Curve raises $95 million as it eyes US expansion

London-based Fintech Curve secured $ 95 million in its latest investment Series C funding.

Challenger bank Revolut applied for UK banking license

Revolut has submitted an application for a banking license to the U.K. Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).