American Express has been granted preparatory approval from the People’s Bank of China (PBOC) for a clearing and settlement license in mainland China.
Image: The American Express building in New York City. Photo: Courtesy of Beyond My Ken/Wikipedia.org.
American Express can now begin building a network business to process domestic, RMB transactions through its joint-venture in mainland China.
American Express has formed a joint-venture with Chinese fintech services company LianLian to build a network business that will enable charges on American Express branded cards to be cleared and settled domestically by the joint-venture.
The joint-venture is registered as Express (Hangzhou) Technology Services Company (Express Company).
American Express chairman and CEO Stephen Squeri said: “We are pleased to be the first foreign payments network allowed to build a network in mainland China. This is an important next step toward being able to bring the benefits and services of our global network to Chinese customers and expanding the ability of our global Card Members to use their American Express Cards in mainland China.
“We are also pleased to be working alongside LianLian, a long-term partner of American Express.”
LianLian chairman Dixon Zhang said, “This is exciting news. LianLian will work together with American Express to seize this opportunity and do all the necessary preparatory work in accordance with relevant laws and regulations and with the guidance and assistance of the regulatory authorities.”
Express Company CEO Walter Liu said: “We are pleased that the PBOC has given us preparatory approval for a clearing and settlement license in mainland China. As a joint-venture, we will bring together the power of American Express’ global brand and network, and the local knowledge, resources and experience of LianLian.”
Source: Company Press Release