Mastercard joint entity in China received formal approval from the People’s Bank of China and the National Administration of Financial Regulation to start processing domestic payments in the country.

Mastercard NUCC Information Technology (Beijing) has been approved by the People’s Bank of China (PBOC) and the National Administration of Financial Regulation (NAFR) for domestic bank card clearing activity in China.

“We are pleased to have reached this milestone with our local partner NUCC. Mastercard’s deeper participation in the Chinese market will benefit the country, its consumers and its businesses, while simultaneously boosting our company’s mission of connecting and powering an inclusive digital economy that benefits everyone and unlocks priceless possibilities for all.”

Michael Miebach, CEO of Mastercard

The preparation for processing local payments has been taking place since 2020. Then, Mastercard received approval from the People’s Bank of China (PBOC) to set up a domestic bankcard clearing in China. It gave Mastercard potential access to a $27 trillion payments market, as soon as it meets local legal requirements.

Over these few years, Mastercard JV has established the necessary standards, rules, structures and infrastructure to comply with local regulatory requirements. The firm also obtained certificates needed for a local switch business.

According to the announcement, Mastercard NUCC plans to operate in China as an active partner, expanding the issuance and acceptance of Mastercard-branded products among local businesses and consumers. The company is looking forward to cooperating with customers and partners in China while driving cross-border and inbound commerce in the country.

In June, Alipay and Mastercard announced the beginning of cooperation to create a new payment method for foreign tourists visiting China.