Today (Thursday), the joint venture (JV) between Mastercard and NetsUnion Clearing Corp (NUCC) officially commenced operations in China, marking a milestone for the US payment company's presence in the Chinese market. The establishment of the JV follows the approval granted by the People’s Bank of China, the country’s central bank, in November 2023, for bank card clearing operations.

Approval Spurs Bank Card Clearing Operations in China

Mastercard's entry into the Chinese market via this JV positions it as the second overseas bank card clearing institution to operate in the country, following American Express' entrance in 2020.

The introduction of Mastercard's services in China is expected to contribute to the diversification and enhancement of financial services available to stakeholders within the country.

The approval granted by Chinese regulators last year paved the way for Mastercard NetsUnion Information Technology (Beijing) Co., the JV entity, to initiate bank card clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term operations in China. Notably, the official Mastercard website confirms that the JV has commenced processing payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term made in China using Mastercard cards issued by domestic banks. Additionally, the JV has expanded acceptance of Mastercard-branded cards for both domestic and international transactions.

Mastercard's Chinese joint venture announced the official commencement of its bank card clearing operations on Thursday, issuing Mastercard-branded cards with its member institutions for domestic and international use https://t.co/WQGnmATN3m pic.twitter.com/YImcg0G6qh

— China Xinhua News (@XHNews) May 9, 2024

“This is another significant milestone for Mastercard. Our goal is to simplify the payments experience for China’s Mastercard cardholders both at home and overseas,” Michael Miebach, CEO of Mastercard, was quoted in the statement sent to the Global Times.

Strengthening Global Connectivity

NUCC, as the local partner in the joint venture, has restated its focus on offering support for Mastercard NetsUnion's operations, highlighting its cooperation with Chinese regulators. In accordance with its goals, Mastercard NetsUnion intends to work with local acquirers to extend its acceptance network in China, strengthening its global network comprising over 130 million acceptance locations.

“To offer more choices and deliver greater value for Chinese consumers and businesses of all sizes, we will expand the availability of Mastercard-branded products, facilitate the addition of millions of new acceptance locations across the country, and deliver seamless and safe payments experiences every day,” said Ling Hai, Chairman of the Board of Mastercard NetsUnion and President of Asia Pacific, Europe, Middle East & Africa for Mastercard.