Mastercard : JV switches first domestic transaction in China

Mastercard JV switches first domestic transaction in China May 8, 2024 | Beijing

Provides seamless domestic and international payment experience

Mastercard NetsUnion Information Technology (Beijing) Co., Ltd. (Mastercard NetsUnion) today began processing payments made in China with Mastercard cards issued by the country's banks. In addition, the joint venture confirmed that Mastercard-branded cards will now be accepted for both domestic and international purchases.

"This is another significant milestone for Mastercard. Since entering the market nearly 40 years ago, we have built strong relationships with China's banks, merchants and fintechs to connect its people to the global economy," said Michael Miebach, CEO of Mastercard. "With our local partner NUCC, our goal is to simplify the payments experience for China's Mastercard cardholders both at home and overseas."

"As our digital doors officially open for business, Mastercard and Mastercard NetsUnion are committed to working with all partners in China to build a secure, trusted and resilient digital ecosystem that encourages innovation," said Ling Hai, Chairman of the Board of Mastercard NetsUnion and President of Asia Pacific, Europe, Middle East & Africa for Mastercard. "To offer more choice 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."

In February 2020, the People's Bank of China (PBOC) granted principal approval for Mastercard NetsUnion to begin formal preparations for a domestic bankcard clearing institution in China. Since that time, the joint venture has established standards, rules, structures and infrastructure in line with local regulatory requirements and obtained the required certificates for a local switch business. In November 2023, Mastercard NetsUnion received formal approval from the PBOC and the National Administration of Financial Regulation (NAFR) to commence domestic bankcard clearing activity.

For decades, Mastercard has provided international visitors to the Chinese Mainland easy and convenient ways to pay. Over the past year, the company's "Pay Like a Local" program has been widely recognized as adding to this effort. By linking internationally-issued Mastercard cards to Chinese digital wallets, the program gave travelers access to the popular QR code payments while shopping at tens of millions of acceptance locations across the country. This complements the nearly 100 million cards issued to Chinese consumers for use when traveling outside the country.

About Mastercard (NYSE: MA)

Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.

www.mastercard.com