American Express Company has been approved to launch bank card clearing services in China, the first foreign payment network to process local currency transactions in one of the world's largest markets.
American Express's China Joint Venture Express (Hangzhou) technology services company has been granted a People's Bank of China network clearing license, the Central Bank said in a statement on Saturday. He said the company had prior approval in 2018. Clearing service is to be started within six months.
This endorsement marks a victory for the card veteran amid growing political tensions between the US and China and provoked by the spread of coronavirus and a spark in Hong Kong. This year, China reiterates its commitment to open its $ 45 trillion financial markets, attract foreign capital, and contribute to growth.
MX will face large domestic competitors and a highly developed market for mobile payments. China accounts for 190 trillion yuan (tr 27 trillion) in mobile transactions in 2018, making it the largest market in the world, according to touch. Alipay of Ant Financial and WeChat Pay of Tencent Holdings Ltd.
By the end of September, China had 8.5 billion bank cards, more than 90% of debit cards.
This endorsement is welcome news for AmEx of New York. After spending on the company's card fell 45% in March, it fell between 30% the year before. Shares fell 18% this year after the company reported $ 2.6 billion in losses in the first quarter.
China is committed to accelerating its entry into the card market as part of an American trade agreement signed earlier this year. It was a long process since the country opened its license to foreign companies in June 2015, as the government opened China Union Pay Company MasterCard Inc. in February to end the monopoly.
Getting Started for Card Companies is part of a broader plan for its markets, including insurance, asset management, and investment banking. BlackRock Inc. And Goldman Sachs Group Inc. It is one of the companies that is ready to fully assemble to capture profits from China's fast-growing assets.
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