Jan 09, 2020 (China Knowledge) - American Express Co (AMEX) has successfully won its bid to access China’s USD 27 trln payments market after the country’s central bank People Bank of China (PBoC) accepted its application in starting a bank card clearing business.
The acceptance of the application signals that it’s moving closer to a final approval. AMEX became the first foreign company to receive approval in Nov 2018 in establishing a joint venture with LianLian, a Chinese fintech-services firm.
The Chinese delegation plans to sign the first phase of its trade deal with the U.S. in Washington on Jan 15, and this coincides with China allowing foreign bank-card clearing providers to acquire licenses. This could create market competition for China UnionPay Co which has been the key bank-card clearing company.
However, the process in entering China has been slow-moving for Visa Inc. and Mastercard which are the world’s two largest payment networks. Neither firm has yet to obtain approval.
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