The People’s Bank of China said on Oct. 13 that it has issued administrative licensing decisions allowing three companies — Visa Information Technology (Beijing) Co., Ltd., LianTong (Hangzhou) Technology Services Co., Ltd., and Mastercard NetsUnion Information Technology (Beijing) Co., Ltd. — to begin preparatory work for bank card clearing institutions in China. According to the disclosure, the three entities correspond to the China operations of Visa, American Express, and Mastercard. The central bank said the approved companies must complete their preparation within one year. After that, they are required to submit applications to commence operations to the PBOC, and can only receive a bank card clearing business license after approval by the PBOC together with the National Financial Regulatory Administration. Only then can they formally launch business. PANews reported that the simultaneous approval of preparatory qualifications for the three major international card organizations is seen by industry participants as a sign that China’s bank card clearing market is continuing to open up.
The People’s Bank of China on Oct. 13 said it had formally issued administrative licensing decisions to Visa Information Technology (Beijing) Co., Ltd., LianTong (Hangzhou) Technology Services Co., Ltd., and Mastercard NetsUnion Information Technology (Beijing) Co., Ltd., allowing the three companies to begin preparatory work for bank card clearing institutions.
Three entities tied to Visa, American Express and Mastercard
According to the disclosure, Visa Information Technology (Beijing) Co., Ltd. is a wholly foreign-owned enterprise established in China by Visa. LianTong (Hangzhou) Technology Services Co., Ltd. is a joint-venture institution in China for American Express. Mastercard NetsUnion Information Technology (Beijing) Co., Ltd. is Mastercard’s joint-venture company in China.
One-year preparation period before business application
Under the requirements, the approved institutions must complete their preparatory work within one year. After that, they must submit applications to begin operations to the People’s Bank of China. They may receive a bank card clearing business license only after approval by the PBOC together with the National Financial Regulatory Administration, and can formally start business only after the license is granted.
What the approval signals
PANews said industry participants view the simultaneous approval of preparatory qualifications for the three major international card organizations in China as a sign that the country’s bank card clearing market is continuing to open up.
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