The new US-China trade deal could help US payments firms enter China - Business Insider

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The agreement between the US and China should speed up Beijing's process for accepting US payments firms' applications to operate in China:

leaves tariffs on approximately $370 billion worth of Chinese goods, though these could be reduced in future agreements.

The agreement's new rules for US electronic payments services' applications to operate in China could lead to a number of firms entering the market quickly. Beijing will now have to accept and review payments firms' applications in a timely manner — something it hasn't always done in the past. The deal states that China's government must accept applications from firms looking to prepare to become bank card clearing institutions in China in five business days and determine its response and reasoning within 90 days of an application's acceptance.

Additionally, once a firm informs Beijing that it has completed the necessary prep work, the government must accept its license application within one month's time and then determine its response. This should speed an application process that's been extremely long in the past. For example, Mastercard Amex and PayPal recently gained access to the Chinese market, and these new requirements might see many more US payments firms enter the space, too.

 

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