Mastercard obtains a bank card clearing licence in China

Mastercard NUCC Information Technology (Beijing) has received formal approval to perform domestic bank card clearing activities in China

Mastercard NUCC Information Technology (Beijing) has received formal approval to perform domestic bank card clearing activities in China. Specifically, Mastercard NUCC Information Technology (Beijing) Co., Ltd has received formal approval from the People’s Bank of China (PBOC) and the National Administration of Financial Regulation (NAFR) to commence domestic bank card clearing activity in the Eastern Asian country.

Addressing these new developments, representatives from Mastercard expressed satisfaction with reaching this achievement in collaboration with local partner NUCC. They emphasised that Mastercard's increased involvement in the Chinese market is expected to benefit the country, its consumers, and businesses, and they also highlighted the company’s mission of fostering an inclusive digital economy that benefits everyone. The approval process The approval process began in February 2020 when the PBOC granted initial approval for Mastercard NUCC to start preparations for establishing a domestic bank card clearing institution in China.

Subsequently, the joint venture developed standards, rules, structures, and infrastructure in accordance with local regulatory requirements and obtained the necessary certificates for a local switch business. Officials from Mastercard NUCC talked about the commitment to actively partnering in China. They also clarified that the current focus is on expanding the issuance and acceptance of Mastercard-branded products for the benefit of local businesses and consumers.

As domestic operations scale up, Mastercard NUCC aims to collaborate with customers and partners in China to leverage technologies and innovations that empower local businesses and enhance daily payment experiences. Mastercard has built a robust cross-border portfolio in China in recent years, encompassing tens of millions of bank cards and millions of acceptance points nationwide. This infrastructure supports connectivity to the global economy, supporting cross-border and inbound commerce in China.

Other developments from Mastercard Earlier in 2023, Mastercard facilitated inbound acceptance via Alipay and Tencent wallets, allowing international cardholders to make secure and convenient payments at QR payment points while travelling in China. In June 2023, Alipay partnered with Mastercard to launch a new payments option that improves the convenience of international travellers. The two entities originally established a partnership in 2019 to provide improved digital payment solutions to both consumers and merchants.

At the time, this development built on that foundation and aimed to allow international travellers to China to ‘pay like locals’ regardless of where in the world their Mastercard card was issued. In essence, Mastercard cardholders gained the ability to link their existing credit or debit cards to the Alipay digital wallet and pay cashless via their mobile devices at millions of Alipay acceptance locations across the country. .

Nov 21, 2023 14:40
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