Mastercard JV Approved to Begin Domestic Payments Processing in China

Rhea-AI Summary

Mastercard: Approval for Domestic Bankcard Clearing Activity in China. Mastercard's joint venture entity, Mastercard NUCC Information Technology, has received formal approval from the People’s Bank of China and the National Administration of Financial Regulation to commence domestic bankcard clearing activity in China. The company's CEO, Michael Miebach, expressed enthusiasm about the milestone and highlighted the potential benefits for the Chinese market, consumers, and businesses. The joint venture aims to expand issuance and acceptance of Mastercard-branded products in China, leveraging technologies and innovations to empower local businesses and deliver superior payment experiences. This move also strengthens Mastercard's cross-border portfolio in China and enables international cardholders to pay safely and conveniently at millions of acceptance points in the country.

Positive

• Formal approval from the People’s Bank of China and the National Administration of Financial Regulation for Mastercard's joint venture entity to commence domestic bankcard clearing activity in China.
• Potential benefits for the Chinese market, consumers, and businesses as a result of Mastercard's deeper participation in the market.
• Expansion of issuance and acceptance of Mastercard-branded products in China, leveraging technologies and innovations to empower local businesses and deliver superior payment experiences.
• Strengthening of Mastercard's cross-border portfolio in China and enablement of international cardholders to pay safely and conveniently at millions of acceptance points in the country.

Negative

• None.

Mastercard cardholders in China will soon enjoy seamless payment experiences at home and abroad

BEIJING--(BUSINESS WIRE)-- Mastercard today announced that its joint venture entity, 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 bankcard clearing activity in China.

“We are pleased to have reached this milestone with our local partner NUCC. 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,” said Michael Miebach, CEO of Mastercard.

In February 2020, the PBOC principally approved the application from Mastercard NUCC to begin formal preparations to set up a domestic bankcard clearing institution in China. Since that time, the JV has established standards, rules, structures and infrastructure in line with local regulatory requirements, and obtained the required certificates for a local switch business.

“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 payments experiences to people every day,” said Ling Hai, chairman of the board of Mastercard NUCC and co-president, international markets at Mastercard.

In recent years, Mastercard has built a strong cross-border portfolio in China that includes tens of millions of bank cards and millions of acceptance points across the country, helping power connectivity to the global economy and driving cross-border and inbound commerce in China. Earlier this year, Mastercard enabled inbound acceptance via Alipay and Tencent wallets so that international cardholders can pay safely and conveniently like a local at tens of millions of QR payment points when traveling around China.

About Mastercard (NYSE: MA), www.mastercard.com
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231120387686/en/

Jennifer Erickson

jennifer.erickson@mastercard.com

914-249-1284

Source: Mastercard Investor Relations

FAQ

What approval has Mastercard received in China?

Mastercard's joint venture entity, Mastercard NUCC Information Technology, has received formal approval from the People’s Bank of China and the National Administration of Financial Regulation to commence domestic bankcard clearing activity in China.

Who expressed enthusiasm about the milestone?

Michael Miebach, CEO of Mastercard, expressed enthusiasm about the milestone and highlighted the potential benefits for the Chinese market, consumers, and businesses.

What is the joint venture aiming to do in China?

The joint venture aims to expand issuance and acceptance of Mastercard-branded products in China, leveraging technologies and innovations to empower local businesses and deliver superior payment experiences.

How does this move strengthen Mastercard's portfolio in China?

This move strengthens Mastercard's cross-border portfolio in China and enables international cardholders to pay safely and conveniently at millions of acceptance points in the country.