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.

Mastercard NetsUnion Information Technology (Beijing) Co., Ltd., a joint venture of Mastercard and NetsUnion Clearing Corporation, received formal approval from the People's Bank of China, China's central bank, in November last year for bank card clearing business in the country.

Mastercard is the second overseas bank card clearing institution to enter the Chinese market, following American Express, which received approval in 2020.

Ling Hai, chairman of Mastercard NetsUnion, said with the opening of the company's operations in China, Mastercard and Mastercard NetsUnion are committed to working with all partners to expand the availability of Mastercard-branded products and facilitate the addition of millions of new acceptance locations across the country.

Mastercard NetsUnion said it would establish a comprehensive network across China, providing cardholders with a convenient and secure payment experience at home and abroad.

The launch of Mastercard NetsUnion's operation is conducive to fostering complementary advantages in bank clearing business services as it provides multi-level and differentiated payment services for domestic consumers, said Guan Tao, an economist with BOC International.

Guan added that the move also helps better align China's financial industry with international standards, promotes healthy competition in the industry, and enhances the marketization and internationalization of domestic financial institutions.

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