US companies no longer discriminated in China, UnionPay monopoly to end

Thursday 30 October 2014 11:48 CET | News

The Chinese government has revealed plans to put an end on UnionPay’s card clearing monopoly in the country.

This would finally allow other companies such as MasterCard and Visa to tap the Chinese market and offer their services to consumers.

Currently, UnionPay is the only clearing service provider for CNY-denominated bank-card payments. In 2012, the World Trade Organization told the Asian nation to stop discriminating against foreign payment companies, a group of companies that also included American Express. The UnionPay’s rules, along with those requiring all Chinese automated teller machines and merchants to use its network, had prompted the WTO to make this move.

According to FBR Capital Markets analyst Scott Valentin, cited by online media outlet BusinessWeek, China’s market opening would represent a ‘huge opportunity’ for US payment networks.

Established in 2002 in Shanghai by the State Council and the central bank, UnionPay has more than 3.8 billion bank cards in circulation. In 2013, bank-card transactions increased 48% to CNY 32.2 trillion (USD 5.3 trillion) in China.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: UnionPay, online payments, card, clearing, China, Visa, MasterCard
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce