Mastercard has received formal approval to begin domestic payment processing in China, allowing the U.S. company to issue yuan-denominated bank cards in the country.
The entry of foreign card schemes into China’s multi-trillion dollar payments market has been a long-standing challenge. In June 2015, China began easing restrictions on overseas firms acquiring licenses, making it possible for them to establish local units or partnerships. At that time, Mastercard created a majority-owned joint venture named NUCC Information Technology (Beijing) Co., Ltd., in collaboration with NetsUnion Clearing Corporation (NUCC).
In February 2020, the People’s Bank of China (PBOC) granted principal approval for Mastercard NUCC to start preparations for establishing a domestic bankcard clearing institution. Since then, the joint venture has developed standards, rules, and infrastructure to meet local regulatory requirements and has obtained the necessary certifications for local switch operations.
The joint venture has now received official approval from both the PBOC and the National Administration of Financial Regulation to begin domestic bankcard clearing activities.
Michael Miebach, CEO of Mastercard, stated, “Mastercard’s deeper participation in the Chinese market will benefit the country, its consumers, and its businesses, while simultaneously boosting our company’s mission of connecting and powering an inclusive digital economy that benefits everyone and unlocks priceless possibilities for all.”