Today (Thursday), the joint venture (JV) between Mastercard
and NetsUnion Clearing Corp (NUCC) officially commenced operations in China,
marking a milestone for the US payment company’s presence in the Chinese
market. The establishment of the JV follows the approval granted by the
People’s Bank of China, the country’s central bank, in November 2023, for bank
card clearing operations.
Approval Spurs Bank Card Clearing Operations in China
Mastercard’s entry into the Chinese market via this JV
positions it as the second overseas bank card clearing institution to operate
in the country, following American Express’ entrance in 2020.
The introduction of Mastercard’s services in China is
expected to contribute to the diversification and enhancement of financial
services available to stakeholders within the country.
The approval granted by Chinese regulators last year paved
the way for Mastercard NetsUnion Information Technology (Beijing) Co., the JV
entity, to initiate bank card clearing operations in China. Notably, the
official Mastercard website confirms that the JV has commenced processing
payments made in China using Mastercard cards issued by domestic banks.
Additionally, the JV has expanded acceptance of Mastercard-branded cards for
both domestic and international transactions.
Mastercard’s Chinese joint venture announced the official commencement of its bank card clearing operations on Thursday, issuing Mastercard-branded cards with its member institutions for domestic and international use https://t.co/WQGnmATN3m pic.twitter.com/YImcg0G6qh
— China Xinhua News (@XHNews) May 9, 2024
“This is another significant milestone for Mastercard… Our
goal is to simplify the payments experience for China’s Mastercard cardholders
both at home and overseas,” Michael Miebach, CEO of Mastercard, was quoted in
the statement sent to the Global Times.
Strengthening Global Connectivity
NUCC, as the local partner in the joint venture, has
restated its focus on offering support for Mastercard NetsUnion’s operations,
highlighting its cooperation with Chinese regulators. In accordance with its
goals, Mastercard NetsUnion intends to work with local acquirers to extend its
acceptance network in China, strengthening its global network comprising over
130 million acceptance locations.
“To offer more choices and deliver greater value for Chinese
consumers and businesses of all sizes, we will expand the availability of
Mastercard-branded products, facilitate the addition of millions of new
acceptance locations across the country, and deliver seamless and safe payments
experiences every day,” said Ling Hai, chairman of the Board of Mastercard
NetsUnion and president of Asia Pacific, Europe, Middle East & Africa for
Mastercard.
This article was written by Tareq Sikder at www.financemagnates.com.
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