China’s central bank People’s Bank of China (PBOC) and financial regulator National Administration of Financial Regulation (NAFR) have approved Mastercard NUCC Information Technology to begin domestic bankcard clearing activity in China
Mastercard, through its joint venture Mastercard NUCC Information Technology, has secured the necessary approvals to begin domestic bankcard clearing activity in China.
The approval was granted by China’s central bank People’s Bank of China (PBOC) and the country’s financial regulator National Administration of Financial Regulation (NAFR).
In February 2020, the PBOC principally approved Mastercard NUCC’s application to start formal preparations to set up a domestic bankcard clearing institution in China.
Since then, the JV has formulated standards, rules, structures, and infrastructure for the proposed clearing institution, in accordance with the local regulatory requirements.
The JV also obtained the necessary certificates required for a local switch business.
Mastercard CEO Michael Miebach said: “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.”
Mastercard NUCC board chairman and Mastercard international markets co-president Ling Hai said: “Mastercard NUCC is committed to being in China as an active partner, working to expand issuance and acceptance of Mastercard-branded products for the benefit of local businesses and consumers.
“As we ramp up our domestic operations, we look forward to working with customers and partners in China to harness technologies and innovations in a way that empowers local businesses and delivers the best payment experiences to people every day.”
Mastercard said it has developed a cross-border portfolio in China in recent years.
The portfolio includes millions of bank cards and acceptance points across the country, connecting it to the global economy and boosting cross-border and inbound commerce in China.
Earlier this year, Mastercard enabled inbound acceptance through Alipay and Tencent wallets.
The move enables international cardholders to pay safely at tens of millions of QR payment points in China during their travel in the country.
Last month, US-based online remittance service provider Remitly Global has teamed up with Mastercard to expand access to cross-border payments and remittances.
Recently, Saudi Awwal Bank (SAB) partnered with Mastercard to offer consumers across the country greater access to secure digital transactions.