American Express (NYSE: AXP) announced over the weekend it secured a clearing license in the midland of China. According to the credit card giant, Express (Hangzhou) Technology Services Company Limited (Express Company) received approval from the People’s Bank of China (PBOC) for the license and with this milestone, American Express claims it has become the first foreign payments network to be licensed to clear RMB transactions in mainland China. The company expects to begin processing transactions later this year.
American Express further explained that Express Company is its joint venture with Lianlian DigiTech Co., Ltd, a Chinese fintech services company and has built a network to clear domestic transactions charged on American Express-branded cards, and is also compatible with the key mobile wallet players in China.
While sharing more details about the license, Stephen J. Squeri, Chairman and Chief Executive Officer of American Express, stated the approval represents an important step forward in American Express’ long-term growth strategy and is a historic moment not only for the company but for the continued growth and development of the payments industry in mainland China. Zhengyu Zhang, Chairman of LianLian DigiTech Co., Ltd., also shared:
“Lianlian is committed to providing the best payments and payment-related fintech services to our commercial customers and consumers across the globe. Against the backdrop of globalization and China’s opening-up of its financial industry, we have been actively introducing China’s mobile payments to the world, while striving to learn from and connect with world-class financial companies.”
Walter Liu, CEO of Express Company, added:
“We are proud to be the first licensed foreign payments network in mainland China. We will offer our partners differentiated services by bringing together the best from American Express and Lianlian. Our focus now is to continue the preparation work for a successful business launch by working closely with the regulators and partners.”
