Mastercard announced today that it has received approval to enter China’s huge payments market. The green light came from the People’s Bank of China (PBOC), which allowed formal preparations so Mastercard can set up a domestic bankcard clearing institution in China.
Chinese payments market is estimated to be $27 trillion and currently dominated by domestic players. Mastercard’s application was submitted by a joint venture with NetsUnion Clearing Corporation (NUCC), a Chinese clearing house for digital payments.
READ ALSO: China’s tech rise
The approval may also be a sign that China is committed to its pledge, reinforced during the trade war with the United States, to open its domestic financial market to international operators.
Ajay Banga, president and CEO, Mastercard, said in a statement “China is a vital market for us and we have reiterated our unwavering commitment to helping drive a safer, more inclusive and seamless payments ecosystem for Chinese consumers and businesses.”