US credit card giant Mastercard plans to enter Chinese market

NEW YORK (Xinhua) – United States (US) payment and technology company Mastercard announced last Friday that it plans to present application for a bankcard clearing licence in China in the near future, in a bid to break into the Chinese market.

“China remains a vital market for us and we look forward to working with the Chinese government and local partners in growing and developing the overall payments ecosystem in the long-term,” Co-President of Asia Pacific at Mastercard Ling Hai said in a public statement.

The credit card heavyweight, based in New York State, is among the latest US companies to set foot on the Chinese market, after American Express (AmEx) gained preliminary approval from People’s Bank of China in November last year, which allowed AmEx to set up its payments network in China.

“We are committed to improving the safety, security and convenience of payments in day-to-day life, which is a key priority for China,” Ling said.

Shares of Mastercard extended solid gains last Friday, up 1.58 per cent when the closing bell of the US stock markets rang, as empowered by its latest global expansion moves.

The company also announced a deal to buy British payments company Earthport for roughly USD305 million.

With Mastercard’s bank distribution, technology, reach and experience as a global network, the company believed it would allow Earthport to accelerate development of a more robust account-to-account, cross-border network service, Mastercard said.