AmEx moves closer to entering China’s US$27 tril market

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The latest move shows progress in US payment networks’ battle for access to Beijing. FMTNews China

SHANGHAI: American Express Co cleared a key hurdle in its bid to accessing China’s US$27 trillion payments market after the central bank accepted its application to start a bank card clearing business.

AmEx in November 2018 became the first foreign company to win permission to start preparation for the business after forming a joint venture with LianLian, a Chinese fintech-services firm. China in June 2015 allowed foreign bank-card clearing providers to obtain licences by setting up units or acquiring a local company, ending a monopoly by state-run China UnionPay Co. But progress in entering China has been slow for Visa Inc and Mastercard, the world’s two biggest payment networks, with neither firm as of yet obtaining approval.

 

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