Permission granted to conduct yuan-denominated bank and credit card transactions

It has been announced that regulatory authorities in China have granted a bank card operating license to the US payment systems company Mastercard following a three-year application process.

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According to a report by the Global Times, the People's Bank of China and the National Financial Regulatory Administration have granted permission to Mastercard and its Chinese partner, NetsUnion, to conduct yuan-denominated bank and credit card transactions. The authorization granted to Mastercard is considered a significant step toward opening China's payment systems market to foreign competition.

Previously, American Express was granted a bank card operating license in the country, but the company does not hold a controlling stake in its Chinese partnership.

Bank card transactions in China are dominated by the state-owned company UnionPay. Meanwhile, online payment systems Alipay and WeChat Pay are widely used in the country.