Mastercard (NYSE: MA) 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) in order “to commence domestic bankcard clearing activity in China.”
Michael Miebach, CEO of Mastercard, said:
“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.”
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.”
Ling Hai, chairman of the board of Mastercard NUCC and co-president, International Markets at Mastercard, 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 payments experiences to people every day.”
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.”